By Edwardina Beeko
Baltimore Watchdog Staff Writer
As the U.S. government continues to impose tariffs on imported goods, small businesses are left navigating the ripple effects, often without the financial tools or backup plans larger corporations can rely on.
Etzerson Georges, a junior finance major at Towson University, believes tariffs are an unavoidable burden.
“Tariffs are going to affect everyone at some point,” Georges said. “But bigger corporations will find ways around paying more because they always do. That’s why they make the most money.”
During former President Donald Trump’s administration, the introduction of sweeping tariffs sparked alarm among small business owners. The Russell 2000 index—a key measure of small-cap companies—fell into bear market territory, dropping more than 20% from its post-election peak. While large corporations have protested the tariffs, small businesses—responsible for nearly 50% of private-sector jobs and a third of U.S. exports—are bearing the brunt of the consequences.
Small businesses are particularly vulnerable as they often rely on multiple middlemen and retailers instead of importing goods directly from international suppliers.
“They don’t get it straight from China, you know,” Georges said. “But if they did, they’d have to pay more. I mean, they would be directly affected by it.”
Though their exposure is indirect, the financial impact can still be significant. Small businesses are often forced to raise prices or absorb costs to stay afloat, unlike large corporations that can restructure supply chains or negotiate alternative sources.
“Bigger companies always find an alternative really quickly and do their best not to lose profit,” Georges said. “And they’re probably going to succeed because it’s a big company.”
A recent Wired report notes how tariffs on materials like PVC and aluminum lacquers have increased production costs for small U.S. manufacturers. Without the scale or lobbying power of large corporations, these businesses often have no choice but to pass costs to consumers or risk shutting down.
Small businesses bear the brunt of rising costs, navigating the challenges with fewer tools to respond. As tariffs reshape the economic landscape, they remain caught in a struggle, forced to adapt, innovate, or risk disappearing.