As President Donald Trump prepares for his second term, small business owners across the U.S. are taking steps to protect themselves from the potential economic fallout of his promised tariffs. One such business is MinkeeBlue, a handbag company based in Philadelphia. Founder Sherrill Mosee had initially been content to wait for her order of 2,700 purses and backpacks, but the re-election of Trump has accelerated her response.
Mosee’s firm is among many across the country now scrambling to adjust to the threat of increased tariffs on goods from China, Mexico, and Canada, America’s top trade partners. Trump has vowed to impose a 25% levy on goods from Canada and Mexico and a 10% tariff on imports from China, which would be on top of existing tariffs from his first term.
“I’m like, okay, we’ve got to bring those in,” Mosee said, referring to her manufacturing orders, now under threat due to the potential tariff hikes. The new tariffs, expected to go into effect as soon as Trump takes office, have businesses like hers stockpiling products, shifting supply chains, and reworking contracts to guard against possible price hikes.
Some experts suggest that Trump’s proposed tariffs may ultimately be less aggressive than promised, but the mere possibility of such measures is already having an economic impact. Chris Caton, managing director at global warehouse giant Prologis, noted an uptick in activity from businesses looking for space to stockpile goods.
Even if the tariffs are reduced or delayed, economists warn that the uncertainty alone could dampen economic growth. Wendy Edelberg, director of the Hamilton Project, stated that businesses are responding to the potential for higher prices and possible shortages, both of which could harm consumers.
Larger corporations like Steve Madden and Stanley Black & Decker are already preparing by shifting manufacturing outside China and discussing price hikes with customers. Even retail giants such as Walmart have been looking for ways to mitigate the effects of Trump’s tariff threats.
While some argue that tariffs could revive U.S. manufacturing and bring jobs back to the country, small business owners like Mosee worry about the financial strain. With limited resources, Mosee is considering sourcing from new suppliers in Cambodia and India but is concerned about the potential impact on the prices of her $180 bags. She may even need to find a business partner to survive the economic uncertainty ahead.
“I’ve been on my own for a decade, but it’s going to be hard,” Mosee said. “It’s going to be hard all the way around.” With the prospect of higher costs and disruptions to global supply chains, small businesses are preparing for a difficult road ahead.
