Tariffs: My Micro Business Perspective
Every day, someone comes into our shop or sends us a note asking, “Are you doing okay? Are tariffs impacting you?”
The answer is simple: Yes and Yes.
In some ways, micro businesses like mine are the canary in the coal mine. Since February, after five years of steady growth, our revenue growth has started to slide. I know we're not alone.
“But wait,” people ask, “aren’t most of your suppliers here in the U.S.?” That’s true. But here’s what’s happening behind the scenes:
• Many of our U.S. suppliers are raising wholesale prices while keeping the MSRP the same. That means our margins shrink, even if customers don’t notice price changes on the shelf.
• Other suppliers are raising both wholesale and MSRP, which slows down sales because customers are more price-sensitive.
• Some U.S. vendors aren’t changing product pricing but have doubled or tripled their shipping charges—from $30 to $100—making it hard for us to justify reorders.
• We’ve had to drop certain European suppliers entirely because the tariffs made their products unaffordable.
• And perhaps the toughest blow: one of our best-selling nail polish brands, (manufactured in the U.S. but owned by a Canadian parent company), decided to pull out of the U.S. market altogether. Within two weeks, we sold out of every bottle. Our customers are asking for it daily, but right now we have nothing to offer. We’ve brainstormed solutions—creating our own brand, driving across the border to pick up stock, even pitching ourselves as a distributor. So far, each option has hit a wall.
What we’re experiencing isn’t unique.
Small and micro businesses across the country are being squeezed by tariffs. When you mix this with political unease, inflation, and threats to our social safety nets, consumers just aren't spending money on healthier, eco alternatives (even though we're more cost effective in many ways).
What we’re experiencing isn’t unique.
Small and micro businesses across the country are being squeezed by tariffs. When you mix this with political unease, inflation, and threats to our social safety nets, consumers just aren't spending money on healthier, eco alternatives (even though we're more cost effective in many ways).
How Tariffs Impact Small Businesses
• Higher costs, smaller margins
Tariffs don’t just make imported products more expensive. They ripple through supply chains, raising costs for U.S. suppliers who rely on imported raw materials or components or packaging. Small businesses—without the purchasing power of big corporations—often can’t absorb those costs. A New York Fed survey found that 90% of manufacturers and three-quarters of service firms reported tariff-related cost increases, with many saying they had to absorb part of the cost themselves [NY Fed†source].
Tariffs don’t just make imported products more expensive. They ripple through supply chains, raising costs for U.S. suppliers who rely on imported raw materials or components or packaging. Small businesses—without the purchasing power of big corporations—often can’t absorb those costs. A New York Fed survey found that 90% of manufacturers and three-quarters of service firms reported tariff-related cost increases, with many saying they had to absorb part of the cost themselves [NY Fed†source].
• Lost sales and revenue
When suppliers raise wholesale prices and customers resist higher retail prices, small businesses end up selling less. In some cases, entire product lines disappear. The U.S. Senate Small Business Committee reported that tariffs forced many small firms to drop products or suppliers altogether, reducing customer choice and cutting into sales [Senate SBC†source].
When suppliers raise wholesale prices and customers resist higher retail prices, small businesses end up selling less. In some cases, entire product lines disappear. The U.S. Senate Small Business Committee reported that tariffs forced many small firms to drop products or suppliers altogether, reducing customer choice and cutting into sales [Senate SBC†source].
• Time-consuming supplier changes
Dropping a supplier or adding a new one isn’t as easy as clicking “swap.” For micro businesses like ours, it takes hours of research to find alternatives, weeks to build new relationships, and then more time to update contracts, shoot new photography, develop pricing strategies, and rework displays. All of that investment happens before the product even hits the shelves—and every day spent scrambling for replacements is a day we’re not serving our customers. Or making a profit. Don't even get me started about customers who tell me they'll just get it on Amazon if I sell out. ARGH. Don't worry, if you're reading this, I know it wasn't you. :)
Dropping a supplier or adding a new one isn’t as easy as clicking “swap.” For micro businesses like ours, it takes hours of research to find alternatives, weeks to build new relationships, and then more time to update contracts, shoot new photography, develop pricing strategies, and rework displays. All of that investment happens before the product even hits the shelves—and every day spent scrambling for replacements is a day we’re not serving our customers. Or making a profit. Don't even get me started about customers who tell me they'll just get it on Amazon if I sell out. ARGH. Don't worry, if you're reading this, I know it wasn't you. :)
• Shipping and supply chain disruption
Even when products are made domestically, tariffs create ripple effects—shipping surcharges, supplier instability, and sudden contract changes. According to the U.S. Chamber of Commerce, these disruptions often hit small businesses hardest, because they lack the flexibility and cash flow of larger companies [U.S. Chamber†source]. We are definitely seeing longer ship times from our normally speedy suppliers, and lots of common items we order sold out or for pre-order only.
Even when products are made domestically, tariffs create ripple effects—shipping surcharges, supplier instability, and sudden contract changes. According to the U.S. Chamber of Commerce, these disruptions often hit small businesses hardest, because they lack the flexibility and cash flow of larger companies [U.S. Chamber†source]. We are definitely seeing longer ship times from our normally speedy suppliers, and lots of common items we order sold out or for pre-order only.
• Consumer hesitation in an uncertain economy
Tariffs add to the overall uncertainty in the economy. Confusion about what’s coming next makes people hold on tighter to their dollars. Nationwide, credit card debt has reached record highs while savings rates are slipping, a clear sign that households are stressed [Federal Reserve†source]. For micro businesses, that means even when we have products to sell, customers are more cautious about spending.
Tariffs add to the overall uncertainty in the economy. Confusion about what’s coming next makes people hold on tighter to their dollars. Nationwide, credit card debt has reached record highs while savings rates are slipping, a clear sign that households are stressed [Federal Reserve†source]. For micro businesses, that means even when we have products to sell, customers are more cautious about spending.
What is a Micro Business?
A micro business is generally defined as firms with fewer than 10 employees and under 1M in revenue. In the U.S., that’s about 75% of all private-sector employers!!!!
Where as a small business, as defined by the SBA, has fewer than 500 employees and make up 99.9% of all U.S. businesses, employing about 46% of the private workforce.
Furthermore, micro businesses are the majority of “small,” but they’re so small (we like to say lean!) they typically have tighter cash flow, less access to credit, and higher vulnerability to shocks (like tariffs).
So even though we have customers in 49 states and 23 countries, we are considered a micro business... for now. When the right partner or investor shows up (call me!), we will aim for world domination in a way that always cares about people and planet along with profit.
Why It Matters
When micro businesses struggle, entire communities feel it. We provide local jobs, keep dollars circulating in our neighborhoods, and bring in products you can’t find at big box stores. But when tariffs make it harder for us to keep our shelves stocked and prices fair, everyone loses—customers, suppliers, and local economies.
Tariffs may be billed as a strategy to strengthen U.S. industries, but on the ground, they’re weakening the very businesses that keep Main Streets alive. AND P.S. we already live in a global market.
Please understand, I'm sharing all of this because you've asked. Please read as much as you can, chat with your friends and neighbors, and please, please vote with your dollars by supporting small and micro businesses when and where you have choice.
We appreciate you!
Jennifer
#shopwithpurpose #shopsmallbusiness #shopwomanowned #Livegreener
References:
• Liberty Street Economics, Federal Reserve Bank of New York. Are Businesses Absorbing the Tariffs or Passing Them On? (2025)
• U.S. Senate Committee on Small Business & Entrepreneurship. Tariff Damage to American Small Businesses Report (2025)
• U.S. Chamber of Commerce. Small Business FAQ: What You Need to Know About Tariffs (2025)
• Federal Reserve Consumer Credit Report (2025)
Leave a comment
Welcome to What's Good
Here's your $10 coupon
You have $10 to use on your first order. Yay!
Good on orders of $30 or more. Happy shopping!
Enter your email below to get your $10 off coupon code.
COPY THIS CODE TO USE IN CHECKOUT