The uncertainty around the constantly evolving price program of President Trump is already hit small businesses Hard and threatening their very survival, say the operators.
With reference taxes 10% on all goods imported into force and Country samples are loomingCommercial operations have become much more difficult for the United States of nearly 35 million small businesses, the owners told CBS Moneywatch.
One of the most urgent challenges they face? Set high enough prices to absorb the cost of new rights over imports without distant customers.
Thirty percent of the owners of small businesses interviewed by the National Federation of Independent Affairs in March said that they planned to increase prices – the largest part reported during the past year, revealed an analysis of the joint economic committee. Upset is a way to compensate for the increase in costs, while cutting expenses – including by reducing labor costs – is the other alternative.
Employment in small businesses with less than 10 employees decreased by 3% – or 366,400 jobs – since President Trump took office, the JEC revealed. This is compared to an increase of 1.2% of hiring by small businesses during the first months of President Biden’s mandate, and a decrease of 0.1% in the first months of President Trump’s first term, the JEC revealed.
“The clearest price increase in 16 years
Shayai Lucero, owner of Earth and Sky Floral Designs, a small floral design company in Laguna, New Mexico, said that it imported a high volume of flowers from Canada, Columbia Equator and Peru. Because it is located in the desert, farms and local gardens cannot produce flowers all year round.
Lucero recently experienced what she called “the clearest price increase” she saw during her 16 years in the flower sector, when the price of a single increase went from 65 cents to 84 cents per rod to a fork from $ 1.89 to $ 2.44.
“We have received emails from several different farms with which we work, which says after Mother’s Day, prices for prices will come into force,” Lucero told CBS Moneywatch. Consequently, it has increased its prices, the corsages of the wrist generally sold for $ 40, now at a price of $ 50.
“This is not enough of what I should have charged, but because my customers are not rich, I had to take it into account if people would buy at home or would they go elsewhere?” Said Lucero, adding that, as his own costs soar, the future of his business is uncertain.
“I was transparent with customers to try to understand them, but if that is too much, I may have to close,” she said. “It is a completely different atmosphere.”
Chinese goods are “unsaleable”
Few companies are safe from prices, but smaller establishments, which tend to operate on thin margins, are among the most vulnerable. Some larger companies imported goods before the input of prices, storing the inventory. With less money at hand, small businesses did not have the same capacity.
“The owners of small businesses are innovative, motivated and disjointed – they often operate on thin margins of razors and constantly find new ways of growing,” said senator Maggie Hassan, classification member of the joint economic committee, in a statement. “But President Trump’s prices are unnecessarily causing immense uncertainty For small business owners, forcing them to make licensees, increase the prices of their customers and even close their doors, “she added.
Mike Roach, who is a co -owner of Paloma Clothing, a 50 year old women’s clothing store in Portland, Oregon, sells labels mainly manufactured in India and China.
He placed orders for a new goods season three to five months ago, before the prices of one or the other country were in force. Today, rates as high as 145% apply to goods from China, while a 10% reference direct debit is in place on goods entering the United States from India.
“The companies with which we are dealing with connniations trying to understand what they are going to do. At this level, Chinese products are roughly unsaleable,” he said. “This is a huge threat to the future of our business.”
Roach hopes that the 50th year in business of his store is not the last, but it is a potential reality that he faces.
“This is the worst and uncertain situation in which we have ever had,” he said. “It’s much worse than anything else in terms of not knowing what to do and what the future will hold because of the uncertain factor.”