Tariff Turmoil: How Small U.S. Businesses Are Paying the Price

Christina and Ian Lacey made a bold move in 2017, leaving secure jobs to turn their shared passion into a business. From their Denver home, they launched Retuned Jewelry, creating unique accessories from donated guitar and bass strings. Their dedication paid off, with sales climbing to $360,000 annually—driven largely by appearances at music and art festivals. But now, that success is under threat due to the Trump administration’s sweeping 145% tariffs on Chinese imports.

While their main material—used guitar strings—is donated, the Laceys still depend on China for essential parts like clasps, beads, and chains. These items simply aren’t manufactured in the U.S., despite their efforts to find domestic suppliers. To brace for the impact, they’ve already raised prices, but experts like John Arensmeyer of Small Business Majority warn that smaller operations like theirs are particularly vulnerable. With tighter margins and fewer resources, small businesses may be forced to scale back, lay off staff, or even shut down.

This struggle isn’t unique to Retuned Jewelry. The Mitchell Group, a family-owned textile company in Illinois, is also reeling from increased tariffs. COO Ann Brunett explained that high upfront import costs on materials—most of which come from China—are tying up vital cash. Although the company brings in nearly $10 million annually, it lacks the financial cushion to weather long-term disruptions, especially as goods may sit unused on warehouse shelves for weeks or months.

While former President Trump promoted tariffs as a way to strengthen domestic manufacturing, business leaders and experts argue the U.S. simply doesn’t have the infrastructure in place. Rebuilding domestic supply chains would take years, and critical materials like vinyl polymers and coated fabrics are virtually unavailable within the U.S. As small businesses try to navigate rising costs and uncertain alternatives, many face a harsh reality: they’re stuck in a global supply chain that no longer works in their favor.