Tariffs Don’t Just Raise Prices—They Shrink Small Businesses

We Pay the Tariffs
6 days ago
2 min read

For small retailers, tariffs don’t arrive in isolation. They ripple through every part of the business—raising costs, squeezing margins, and ultimately driving customers away. Tree Huggers Trading Co., a small gift and coffee shop in Allenspark, Colorado, is feeling that pressure from all sides.

As tariffs took effect, the business was hit with additional fees before their wholesale orders could even ship. Costs that had already been negotiated suddenly increased, leaving the shop with no room to adjust. At the same time, wholesale prices surged—especially for coffee beans, a core product.

This is the reality for small businesses: when costs rise, there are no easy options. Passing those increases on to customers risks losing sales. Absorbing them cuts directly into already tight margins.

For Tree Huggers, the impact showed up quickly. By the fall, business began to decline. For the first time in the shop’s history, they saw a month where sales dropped below the previous year. And instead of rebounding during the holiday season, the downturn continued through Christmas—traditionally the most important time of year.

The combined effect of higher wholesale prices, unexpected tariff-related fees, and declining sales added up fast. In total, Tree Huggers estimates tariffs cost them between $10,000 and $20,000 in a single year.

That’s not just a financial hit—it’s a constraint on growth, hiring, and long-term stability. And it’s not unique. Across the country, small businesses are facing the same squeeze: higher costs they can’t control, paired with customers who are increasingly price sensitive. The result is fewer sales, tighter margins, and harder decisions about how to keep the doors open.

Tariffs are often framed as a tool of economic policy. But for small businesses, they function as a tax—one that hits hardest where there’s the least room to absorb it.

Small businesses shouldn’t be collateral damage. If tariffs have impacted your business, join us in calling for refunds and relief. Sign the letter today.