In The News

In recent years, trade policies have become a central topic of discussion, and the impact of tariffs—particularly those imposed during the Trump administration—has been felt across industries. While tariffs were initially introduced as a means of protecting American businesses, their effects have been far-reaching, especially for small businesses, with BIPOC-owned enterprises facing unique challenges.

What Are Tariffs? Tariffs are taxes or duties placed on imported goods. The Trump administration’s tariffs primarily targeted products from China, but they also affected goods from other countries, leading to an increase in the cost of raw materials, finished goods, and other imports.

How Do Tariffs Impact Small Businesses? Small businesses, including those owned by BIPOC entrepreneurs, are particularly vulnerable to the consequences of tariffs. Here’s why:

1. Increased Costs of Goods- Small businesses often rely on affordable raw materials and goods from international suppliers. With tariffs in place, the cost of these imports has risen, forcing business owners to either absorb the cost or pass it on to customers. For small and BIPOC-owned businesses already operating on tight margins, this can be a significant strain.

2. Disruption of Supply Chains- Small businesses typically don’t have the same level of leverage with suppliers that larger companies do. Tariffs can disrupt established supply chains, leading to delays and higher prices for products, further complicating the operational needs of smaller businesses.

3. Barriers to Exporting- Many BIPOC-owned businesses are engaged in international trade, whether through exporting goods or services. The introduction of tariffs can increase the cost of doing business abroad, making it harder for them to compete in global markets.

4. Heightened Competition- The rising costs of goods often lead larger businesses to pass on tariffs with ease, thanks to their scale and market presence. This can put smaller, BIPOC-owned businesses at a competitive disadvantage, especially when facing larger companies that can absorb these increased costs more efficiently.

Trump’s push for sweeping tariffs—especially on imports from China—doesn’t just hit the global market. It hits home, and it hits harder in historically marginalized communities.

Black, Latinx, and immigrant-owned businesses—often under-capitalized and lacking access to major lines of credit—are more vulnerable to supply chain disruptions and rising costs. These businesses frequently rely on imported goods, whether it’s materials for manufacturing, products for resale, or equipment for services.

When tariffs force small businesses to pay hundreds of thousands more overnight, businesses in low-income areas and communities of color may not have the cushion to survive.

For BIPOC entrepreneurs already navigating systemic barriers, this is yet another blow. While big corporations adjust and lobby for exemptions, smaller players are left scrambling.

If we’re serious about economic justice, we need trade policies that don’t reinforce racial and economic disparities—but instead invest in a thriving, inclusive small business ecosystem.

What Can BIPOC-Owned Businesses Do? While tariffs present real challenges, there are steps BIPOC-owned businesses can take to adapt:

• Reevaluate Supply Chains: Diversify sourcing strategies to reduce dependence on tariffs-heavy countries. This may involve sourcing goods from different regions or negotiating better deals with domestic suppliers.
• Leverage Advocacy Groups: Organizations like Amplify POC and Love Live Local can provide resources, training, and advocacy to ensure that BIPOC business owners understand their rights and are informed about any policy changes. By coming together, businesses can amplify their voices to push for policy changes that benefit all small businesses.
• Seek Financial Support: Look into government programs designed to support small businesses impacted by tariffs. This includes grants, loans, and tax relief options.

Looking Ahead: The Future of Trade Policy The Biden administration has taken steps to review and adjust tariffs, but the landscape remains uncertain. It’s important for small businesses to stay informed about future policy changes and to continue to advocate for fair trade practices that support equitable growth for all businesses.

We understand that navigating these economic changes can be difficult, but together, we can adapt and build more resilient, equitable businesses. At Amplify POC, we remain committed to supporting BIPOC-owned businesses and ensuring they thrive, no matter the obstacles they may face.

If you’d like more information about how tariffs are affecting your business or need assistance in finding resources, feel free to reach out. We’re here to help you stay strong in this evolving landscape.

In peace, equity & justice,

Tara Vargas Wallace, Executive Director, Amplify POC, Inc.

“Not everything that is faced can be changed, but nothing can be changed until it is faced.” -James Baldwin

Sources:

NY Post – Idaho entrepreneur hit with massive tariff bill

Business Insider – Fashion brand explains 3 ways tariffs hit small business

Wall Street Journal – Bipartisan concerns over small business impact