Trump proposed that importers pay a 25% tax on all products entering the country from Canada and Mexico, and an additional 10% tariff on goods from China, as one of his first executive orders. He had previously offered a tariff up to 20% on everything else the United States imports.
This means that small businesses could pay more for goods and services. Small business owners say they are waiting to see what the final shape of the tariffs will be, but are bracing for higher costs that could in turn be passed on to consumers.
Laurel Orley, co-founder and CEO of Nashville-based sprouted nut snack company Daily Crunch, said at first she didn’t think the tariffs would affect her business because she doesn’t import much. But she understood that the tariffs would have a recurring effect. For example, she planned to get bags from China to save 5 cents per bag. But with the tariffs, they may have to screw up that plan.
“That was one of our big initiatives for 2025, moving all our bags to China for 15 cents a bag,” she said. “And now I don’t know if we can save money on the bags when the tariffs go into effect.”
Storage prices are also rising due to expected tariffs, Orley said. Its warehouse supplier said demand had increased since the tariffs were announced.
“As many other companies buy bulk inventory overseas to stay ahead of tariffs, warehouse availability becomes limited, which will increase costs for everyone,” she said.
So Orley is trying to close its warehousing contract for 2025 and find a third-party logistics provider for that year, “so we can get ahead of what’s coming and plan ahead as much as we can,” she said.
Across the border in Canada, Julie Bednarski-Malik runs another snack company, Healthy Crunch, based in Mississauga, Ontario, which specializes in foods free of 11 major food allergens such as peanuts, tree nuts and dairy products, but also with a low sugar content.
It sells its products in both Canadian and U.S. retail stores, and she said the tariffs will affect consumers on both sides.
“If you have a severe anaphylactic reaction to some type of dairy or soy, and you can’t find the product in the U.S. because we’re the only one that makes it, it’s going to be a lot more expensive for the American consumer,” Bednarski-Malik said. “So I think these tariffs are really not going to just penalize, you know, other countries like Canada, but American consumers as well.
He is holding off on any major changes to his business until the tariffs are finalized, but expects higher prices.
“Ultimately, the consumer will have to pay at the end of the day because our margins are so thin starting with our food prices, (which) have been increasing dramatically over the last few years,” she said. “So there’s not a lot of margin to keep the same price and keep that price while charging an additional 25% duty on our product.”
