Trump Tariffs Threaten Small Businesses and Holiday Trade in the United States

As the critical holiday shopping season unfolds, small businesses across the United States are voicing alarms over the mounting impact of Donald Trump’s tariffs on imported goods. Increased costs tied to tariffs have driven up prices on a range of popular seasonal items, placing extra strain on independent retailers just as they rely on festive trade to sustain them through the year.

Case studies from across the country highlight the scale and severity of the problem. Joann Cartiglia, owner of Queen’s Treasures, a toy company in New York, said retirement hopes have vanished as tariffs eat into margins and destabilise business forecasts. Speaking at a press briefing for We Pay the Tariffs, a coalition of small firms, Cartiglia warned that existing government policies risk pushing owners out of business.

The effects are being widely felt. Jared Hendricks, proprietor of Village Lighting Co in Utah, estimated his tariff-related costs have neared one million dollars in the current year. The business, which specialises in festive lighting and decorations, has shifted its focus from profits to tariff repayment. Hendricks cautioned that current price hikes on seasonal goods may be minor compared to what consumers could face if tariff relief does not arrive before the 2026 trading cycle.

The complexity of global supply chains amplifies the challenges. Specialists contend that building American manufacturing capacity for Christmas goods would require extensive investment and decades to implement, with insufficient workforce to support such a shift even if it became feasible.

Retailer voices consistently highlight the vulnerability of small businesses. Boyd Stephenson, who owns Game Kastle College Park in Maryland, has seen operational costs soar and reports a rising number of toy and game studios collapsing under the pressure. Many manufacturers and publishers, working with narrow margins, lack the ability to absorb new expenses or pass them onto customers without losing clients.

Data underscores the urgency of the situation. A recent survey by Small Business for America’s Future reports that 71 percent of small businesses anticipate a negative impact on consumer spending due to tariffs this holiday season. Forty-four percent expect business to suffer very badly. The same proportion have already increased prices to offset tariff costs, while a substantial majority remain uncertain about their long-term survival.

Despite mounting evidence of stress in the small business community, the administration maintains that foreign exporters will bear the main burden of new tariffs. A White House spokesperson emphasised the government’s pro-growth agenda, aimed at securing higher investment and improved trade deals while reducing taxes and regulation for businesses.

The outcome of these measures remains hotly debated, but as the festive season continues, small businesses throughout the United States face heightened risks, reduced margins, and critical questions over their future viability.