Chaos in Tariff Town: Small Businesses Wrestle with Trump’s Unpredictable Trade Policies

Posted on June 3rd, 2025

In the wake of President Donald Trump’s erratic tariff strategies, small businesses across the United States have been thrown into disarray. The past two months have witnessed a rollercoaster of economic policies that have left business owners scrambling for stability. Just when the dust seemed to settle, a federal court threw another wrench into the works by ruling that Trump had overstepped his authority with most of these import levies. This decision, however, was swiftly contested as an appeals court stayed the ruling.

For small business owners, this back-and-forth has been nothing short of a logistical nightmare. It has forced many to reconsider their product strategies, supply chains, and staffing levels. Some have even had to delay product launches amid the uncertainty.

The ruling in question came from the US Court of International Trade in Manhattan, which cited that President Trump had infringed upon his powers under the International Emergency Economic Powers Act (IEEPA). The court argued that the tariffs did not constitute an appropriate response to a national emergency, as required by the law. This decision temporarily put a halt to Trump’s aggressive tariffs on several countries, including China, Mexico, and Canada.

However, these legal victories for small businesses may be short-lived. An immediate appeal from the Trump administration has clouded the future of these tariffs and likely prolonged the legal battle. This limbo has left businesses uncertain about whether these policies, which increase import costs, will persist.

As tariff chaos ensues, businesses large and small are grappling with the impacts. The uncertainty is particularly detrimental to small companies, which often operate on tighter margins. There are stark stories like that of Manley Labs, a high-end electronics company that had to cut employee hours by 25% due to the financial strain of these import duties. Similarly, Sarah O’Leary of Willow, a manufacturer of wearable breast pumps, found her business operations hampered by skyrocketing costs tied to tariffs.

Despite the turmoil, experts suggest small businesses adopt versatile sourcing strategies and diversify their production to mitigate risk—much like Intuition Robotics, which is exploring international markets beyond China.

The potential for real policy shifts remains on the horizon as both sides prepare for further legal wrangling. While some business leaders, like EveAnna Manley, feel that the U.S. government has let them down, others find a silver lining in the unpredictable market shifts. Adjusting to the volatility remains challenging, but as history shows, adaptability can sometimes turn chaos into opportunity.

In these trying economic times, the call to action for small businesses is clear: plan strategically, evaluate alternative markets, and stay nimble. The landscape is uncertain, but the one certainty is that flexibility will be the key to survival.

To catch the thoughts of Chris Geno and myself from The On The Rocks | eCommerce Hour podcast listen HERE