How Trump’s 145% China tariffs could crush American small businesses: ‘There’s no facility here that makes what we need’

Small businesses will have no choice but to raise prices, cut staff, delay growth plans or shut down entirely just to keep up with the rising costs of imports they can’t source domestically, one expert said.

In 2017, Christina and Ian Lacey decided to take a chance and leave their stable careers to turn their hobby into a small business. The risk and hard work paid off. The Denver couple started Retuned Jewelry from their home and have seen impressive returns — averaging $360,000 in annual sales, most of which stemmed from frequenting music and art festivals. Christina, a former dental assistant, and Ian, who previously worked in information technology, handcraft donated guitar and bass strings into earrings, necklaces and bracelets. “We’ve worked 24/7 on this,” Christina told CNN. “This is our baby. We’ve pushed through burnout just to keep it alive.” But all the hard work may fall to the wayside due to President Donald Trump’s 145% tariffs on Chinese imports, which accounted for nearly $440 billion in goods to the United States in 2024. While businesses of all sizes are impacted by tariffs, smaller operations — like Retuned Jewelry — are more exposed, according to John Arensmeyer, founder and CEO of Small Business Majority, an advocacy group that represents a network of 85,000 small businesses. He said small businesses will have to raise prices, cut staff, delay growth plans or shut down entirely just to keep up with the rising costs of imports they can’t source domestically.