Aluminum cans at Virginia’s Lost Boy Cider are pricier due to Trump’s aluminum tariffs. Minnesota’s Beth Benike, a baby product entrepreneur, faced inventory shortages when Trump initiated a trade war with China. Maryland’s Barton O’Brien halted his Irish-style sweater line because importing from India became too costly. Pennsylvania glass decorator Walt Rowen constantly worries about his tariff expenses. “If there’s one thing that’s universal in business, no matter what you’re doing, it’s that stability and calmness create a positive market,” said Rowen, owner of Susquehanna Glass Company.
Since the onset of Trump’s trade policy, small businesses have been on edge. The U.S. Supreme Court is deliberating on the legality of Trump’s emergency tariffs, with a decision not expected until February 20. A survey by Main Street Alliance, spanning June to November 2025, revealed 81.5% of small business members might raise prices to counter tariff costs, 41.7% would delay expansion, and 31.5% anticipated layoffs. The U.S. Chamber of Commerce estimates Trump’s tariffs cost approximately 236,000 small businesses about $200 billion annually.
Trump’s tariffs, enacted under the International Emergency Economic Powers Act (IEEPA), started over a year ago. He imposed duties in February 2025 on imports from Canada, Mexico, and China, citing illicit fentanyl smuggling. In April, a global 10% import tax followed, alongside reciprocal tariffs due to trade deficit emergencies. A group of small business owners contested this, winning in lower courts. Trump appealed to the Supreme Court, seeking a swift decision.
Supreme Court justices scrutinized the legality of Trump’s use of IEEPA for tariffs. The outcome will affect only tariffs imposed under declared emergencies. Sectoral tariffs on metals and critical imports, based on national security, will remain. Rowen, whose business involves engraving glassware, expressed uncertainty over the potential decision, asking, “If they decide that the president’s policies are legal, then we’re stuck where we’re at. Potentially, he might become emboldened to do even more.”
Trump tariffs pass one-year mark
The Trump administration lauds tariffs as beneficial, claiming they aid in reducing the nearly $39 trillion national debt. Trump asserts tariffs will bring manufacturing back to the U.S. and provide $2,000 dividends to taxpayers. In 2025, tariffs generated $195 billion, a rise from $77 billion in 2024. The nonpartisan Congressional Budget Office predicts tariff revenue could reach $418 billion in 2026, surpassing corporate income taxes for the first time since the 1930s.
Tristan Wright, owner of Lost Boy Cider, noted, “They don’t have another way of getting us out of this debt situation.” The increased cost of aluminum cans, primarily sourced from China, impacts his business. Wright commented on the slow growth of domestic aluminum production, stating, “You don’t just snap your fingers and, like, create an aluminum plant.”
Costs to households
Economists suggest tariffs, while raising revenue, impede economic growth. Wayne Winegarden from the Pacific Research Institute remarked, “If you wanted to raise taxes, there are ways of doing it that would be less obstructive to the economy than imposing tariffs.” The Tax Foundation estimates tariffs will cost each household $1,300 in 2026. Erica York, from the think tank advocating business growth, explained consumers face tough choices due to rising prices.
O’Brien from Baydog, a Maryland-based dog apparel company, increased inventory to manage tariff expenses. “I have been forced, as a business owner, to borrow money and tie up all that cash in product,” he stated. Benike, owner of Busy Baby, delayed a shipment from China, waiting for the Supreme Court’s decision, which could have saved her $40,000. Upon realizing a tariff reduction, she expressed relief, saying, “So my final tariff ended up being 10% less than I expected. YAY!”
The big ‘what if’
Shawn Phetteplace of Main Street Alliance noted preparations to assist small businesses if the Supreme Court overturns the emergency tariffs. “The other option is for individual businesses to sue the government and to recoup those costs,” he explained. O’Brien criticized the court’s delay, adding, “Every day that goes by, they’re making the mess bigger.” White House spokesperson Taylor Rogers reaffirmed Trump’s commitment to an “America First” agenda, emphasizing tax cuts and economic growth measures.
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