Whatever instigated it, Carrin Harris, owner of Blitz Photo, took a major step to change her company’s quote expiration policy. Instead of a month, she made it one week. This shift is undoubtedly in part due to the weirdness surrounding tariffs that have been causing havoc for industries all over the country – especially construction. Time and money Big changes are coming — but all isn’t lost. Larger companies have the capital to absorb these changes. In the meantime, small businesses such as Blitz Photo are suffering.
Protectionism through tariffs has hurt businesses large and small, but the effects of these punitive measures are not all the same. On the positive side, Harris noted that many American suppliers are pulling out all stops to increase their competitiveness. The reality is that high U.S. manufacturing costs continue to be a lack of capacity. She described the challenges her company faces, stating that “a lot of our quotes are no longer good because the cost of components continues to go up, and it’s volatile, and we can’t even anticipate it.”
Partly due to the overwhelming economic impact on small businesses highlighted above, international trade policies have changed drastically. Brazil, for example, is hit with a 50% tariff on coffee exported to the United States. In a parallel move, China faced a 30% tariff due to a separate trade pact. India’s average bound tariff rate has jumped up to 50% because of its dependence on Russian oil and energy. The recently imposed tariffs now cover over 90 different trading partners and have raised tariffs by 15—41% on products entering the U.S. At the same time, Canada and Mexico continue their own negotiations for bilateral trade agreements.
The Yale Budget Lab estimated that the recent trade policies could cost the average American household an additional $2,400 annually. Harris expressed skepticism about claims that tariffs would lead to a resurgence of manufacturing in the U.S., asserting, “I don’t know that I believe that because infrastructure doesn’t happen overnight.”
As the tariffs drag on, Harris has seen the impacts on the buying behavior of his customers. She explained that “sometimes the customers don’t even want to work with us because the costs are so high.” With rising costs affecting her business, she warned about the uncertain future of Blitz Photo, emphasizing that “we struggle with taxes in general, and another tax is devastating to our company.”
Harris’s experience helps to illustrate a major trend that is hurting small businesses across the country. They are grappling with skyrocketing costs and rapidly-changing economic realities. The still-pervasive effects of the tariff uproar demonstrate the intricate nature of global commerce and its ripple impact on neighborhood businesses.
