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Tariffs: What You Might Need to Know
Tariffs have once again taken center stage in the policy landscape—and they’re bringing significant uncertainty for business owners. Since the start of his second term, President Trump has announced a sweeping set of new tariffs on U.S. trading partners, including a baseline 10% tariff on most imports and steeper tariffs on countries with trade surpluses, most notably China.
Chinese goods now face tariffs of up to 135%. While many of these tariffs have been paired with temporary pauses to allow for trade negotiations, the uncertainty is already creating ripple effects across supply chains—and the self-employed and micro-businesses are not immune.
Quick Assessment of Current Tariffs:
- A baseline 10% tariff applies to most U.S. imports, with exceptions.
- China faces tariffs up to 145%; Mexican and Canadian goods are exempt only if products meet USMCA compliance.
- These changes could raise prices, delay shipments, and disrupt sourcing for small businesses.
What Do These Tariffs Mean for Your Business?
Tariffs aren’t just policy, they affect day-to-day decisions for small businesses: whether you need to raise prices, pivot suppliers, or delay investments due to rising costs. For the self-employed or micro-businesses who often face capital constraints and operate leaner margins, the impact could be especially challenging.
Here are a few potential examples:
- That tariff cost hits you when your shipment clears customs — and impacts your final product pricing.
- Even service-based businesses could see higher prices for office equipment or tech tools impacted by global supply chains.
Quick Reminder: What Is a Tariff?
A tariff is a tax imposed by a government on imported (and sometimes exported) goods. In this case, the U.S. government has imposed new tariffs on most foreign goods entering the country. In response, some countries, including China and the European Union, have issued retaliatory tariffs on U.S. exports, which could further impact American businesses.
What Can You Do Now?
While the trade landscape continues to shift, there are proactive steps you can take to minimize the impact on your business:
- Review your supply chain: Can you source key products or inputs from domestic or USMCA-compliant suppliers?
- Talk to your vendors: Renegotiate pricing or contract terms where possible.
- Monitor inventory closely: Plan ahead to avoid disruptions or delays
- Cut costs strategically: Look for areas to streamline operations without sacrificing quality or customer experience.
- And most importantly: stay informed. This situation is evolving quickly, and what’s true today may shift tomorrow.
Resources for Self-Employed and Micro-Businesses
NASE recommends reviewing
Gusto’s Small Business Owner’s Guide to Tariffs for an accessible overview of current policies and practical advice on how to navigate trade-related uncertainty.
Meet The Author:
As Vice President for Government Relations and Public Affairs, I work to explain how actions on Capitol Hill can impact the self-employed. I love D.C. and have made my home in Capitol Hill, where I live with my husband and black Labrador, Coltrane. We love playing volleyball and softball on the National Mall.
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