Trump's Tariffs Are Forcing Global Small Business Owners to Raise Prices

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Many CEOs of small and medium-sized consumer product businesses in the U.S. say President Donald Trump’s tariffs could force them to raise prices before the end of the year.

Last week, Trump updated tariff rates for dozens of countries, ranging from 10% to 41% duties that go into effect starting Aug. 7. Goods that are considered to have been transshipped, or shipped through an intermediate country to disguise where they were originally made to avoid applicable duties, will be hit with an additional 40% rate.

U.S. businesses that stocked up on inventory earlier this year are now starting to run out, they say. When they reorder from their overseas manufacturers, they’ll need to pay steep import costs.

“I’ve been questioning, ‘What is the American Dream?’ because I thought I was living it,” a business owner says. “I served my country, I got an education, I bought a home, I started a business. ... This is not a dream anymore.”

Chaos Hits the Economy

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With each day, evidence is mounting across the corporate world that the eratic implementation of U.S. President Donald Trump's tariffs is translating into chaos hitting the economy.

The uncertainty brought by Trump's threats of tariffs and his shape-shifting trade policies is starting to have a chilling effect across many industries, businesses warn, as consumers pull back on everything from basic goods to travel.

The president's back-and-forth tariff moves against major trading partners have kept markets on edge, and prompted companies to warn they may have to raise prices, which could boost inflation and dent economic growth.