There is a scary truth that keeps every small business owner up at night: They are always one step away from bankruptcy.
Each year there is one event—it could be the loss of a key employee, a long-time supplier going out of business, or the impact of a natural disaster—but there’s one major shake-up that threatens to put them under.
Yes, tariffs on imported goods could cause some businesses to have a higher cost. But this isn’t necessarily the problem. Businesses often have changing costs, due to a wide variety of factors, and businesses can typically navigate through it.
The problem is the continuing uncertainty of the situation.
For those businesses that have decided to be quick to act, the efforts seem somewhat short-sighted, along the lines of rerouting shipments through another country or adjusting the invoicing process with a supplier in hopes of reducing the impact of the tariffs on their product. It is hard to fault a business that is using their time and resources to cut costs, skirt the system, or chase down a loophole if it means they are able to continue to turn a profit. But this activity is not what makes America tick, as we have long relied on small businesses to spend their time and resources to innovate in the areas of product development, process optimization, and expansion of sales.
One action that I do not hear about is an interest in companies bringing back manufacturing to the USA. Being a domestic apparel manufacturer, I have a close ear to the ground for production needs and capacity in our industry. This is shockingly different from the response during the COVID pandemic, when companies small and large rallied around the idea of manufacturing in the USA, and many made significant strides to do so, even if only for a short period of time. In my world of apparel manufacturing, tariffs are going to hit many companies hard. At the same time, I know of three long-time manufacturing operations that are likely to close their doors in the coming months due to lack of demand.
How can small businesses survive the uncertainty of tariffs?
American business owners are resilient, and many will survive these uncertain times. But I don’t know a single person who owns a business simply because they want to survive. They want to thrive. Small businesses are the backbone of the American economy and will only be able to continue to add value through innovation, job creation, and community involvement once the uncertainty around widespread tariffs has settled down.
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
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