Tariffs Are Stalling Growth for New Small Businesses

Austri Aura, a small gift shop in Woodstock, Illinois, is just over two years old — a point when many small businesses are ready to take their next step: hiring help, expanding offerings, and investing back into their operations. But tariff uncertainty has put that progress on hold.

The owner explained the situation simply:

“My business is just a little over two years old and has been growing to the point I need to hire an employee. But with the uncertainty of tariffs, I cannot invest further into my business the way I would like to in order to expand. It won’t allow me to contribute more to my community by hiring for tasks I currently need to do by myself in order to survive financially.”

For young businesses, unpredictability is especially damaging. When costs can rise suddenly and without warning, owners are forced to prioritize short-term survival over long-term growth. Hiring plans are delayed. Expansion is shelved. Opportunities are missed.

This isn’t just about one shop in Illinois. It’s part of a broader pattern small businesses across the country are reporting: tariff uncertainty makes it harder to plan, invest, and create jobs — even for businesses that are otherwise growing and succeeding.

Stories like Austri Aura’s show how tariff uncertainty doesn’t just raise costs — it freezes momentum. For small businesses on the edge of growth, that hesitation can mean the difference between hiring help or doing everything alone, between expanding or standing still.

📢 If your small business has been directly impacted by tariffs, add your name to our letter. Your perspective helps show policymakers what these decisions look like in practice — on hiring plans, investment, and the future of small businesses.