{"id":1454,"date":"2025-08-25T21:17:24","date_gmt":"2025-08-25T21:17:24","guid":{"rendered":"https:\/\/lavoz.us.com\/homepage\/?p=1454"},"modified":"2025-09-01T00:50:26","modified_gmt":"2025-09-01T00:50:26","slug":"trumps-tariff-war-u-s-small-businesses-and-consumers-in-critical-condition","status":"publish","type":"post","link":"https:\/\/lavoz.us.com\/homepage\/american-community-media\/trumps-tariff-war-u-s-small-businesses-and-consumers-in-critical-condition\/","title":{"rendered":"Trump\u2019s Tariff War: U.S. Small Businesses and Consumers in Critical Condition"},"content":{"rendered":"\n

On April 2, the President of the United States declared it \u201cLiberation Day\u201d and signed Executive Order 14257, which increases import taxes on several countries. The measure is already affecting consumers, small businesses, and strategic partners such as China, India, Brazil, and Mexico. On a briefing held by American Community Media by American Community Media, experts analyzed the unfolding situation.<\/strong><\/p>\n\n\n\n

Donald Trump wants to control the board. On April 2, the U.S. president declared it \u201cLiberation Day\u201d and, in a ceremony at the White House Rose Garden, signed Executive Order 14257. With this measure, he significantly raised tariffs on imports from several countries, claiming it would correct the annual trade deficits in U.S. goods.<\/p>\n\n\n\n

Trump justified his decision as a way to improve the economy and curb illicit trade practices. However, the effect has been the opposite. In just four months, the measure has caused instability in businesses and commercial tensions with countries such as China, Brazil, India, and Mexico, the most affected. In a conference organized by American Community Media, experts analyzed the impact of the president\u2019s decisions on consumers, workers, and small businesses in the United States.

The Greatest Tariff Crisis in History<\/strong><\/p>\n\n\n\n

\u201cSince the 1930s, tariffs have not been this high,\u201d said Neil Mahoney, Director of the Stanford Institute for Economic Policy Research and Professor of Economics at Stanford. The scholar expressed concern about the current situation and warned of its repercussions for the business sector.<\/p>\n\n\n\n

He explained that some business groups anticipated the tariffs by importing products before they took effect. They also benefited from profit margins gained after the pandemic and, given weak demand, avoided passing cost increases on to prices.<\/p>\n\n\n\n

However, small businesses are facing a critical situation. \u201cThey rely on imports and are experiencing supply problems. Key inputs like copper, steel, and iron have become more expensive. Almost half of U.S. imports are destined for final products,\u201d Mahoney noted.<\/p>\n\n\n\n

Consumers are also affected. \u201cIt impacts everyday products such as clothing, electronics, coffee, furniture, and toys. The greatest risk will be seen at Christmas, when consequences could be severe, even potentially catastrophic. About 10% of what we consume comes from imports, and tariffs are rising by almost 15 percentage points.\u201d<\/p>\n\n\n\n

Mahoney sees some hope for countering the effects of the tariffs, but a solution does not seem near. \u201cTariffs are a self-inflicted error that do more harm than good; if they were reduced, the economy could recover. But there are no signs of a change in Trump\u2019s strategy.\u201d<\/p>\n\n\n\n

<\/p>\n\n\n\n

China, Brazil, and India: The Most Affected<\/strong><\/p>\n\n\n\n

Another expert analyzing the situation was Anil Deolalikar, Professor of Economics at the University of California, Riverside. His analysis focused on China, India, and Brazil, which so far have been hit the hardest by the measures.<\/p>\n\n\n\n

Currently, China faces a 30% tariff, India 25%, and Brazil 10%. However, Deolalikar warned the situation could worsen: \u201c145% for China after November, and up to 50% for India and Brazil if negotiations fail.\u201d<\/p>\n\n\n\n

In China\u2019s case, he noted that the country exports around $450 billion to the U.S. (equivalent to 3% of its GDP). A tariff exceeding 100% on products like iPhones could generate massive unemployment in the sector. \u201cThere are already rumors that youth unemployment could reach 25%. China has even stopped publishing these statistics,\u201d he said.<\/p>\n\n\n\n

In India, the situation is different. Its largest export sector is IT and software services, which generated less than $80 billion in imports last year. \u201cIndia relies more on its domestic market, but its exports to the U.S. remain significant,\u201d he explained.<\/p>\n\n\n\n

Brazil, by contrast, is less vulnerable. \u201cIt exports $40 billion, but its main trading partner is China, making it less dependent on the U.S.,\u201d Deolalikar said.<\/p>\n\n\n\n

The scholar also stated that Trump\u2019s tariffs are driven more by political than economic reasons: \u201cThe 40% tariff on Brazil is entirely due to judicial persecution against Bolsonaro; the administration admits this openly. The additional 25% on India aims to force it to stop buying Russian oil.\u201d<\/p>\n\n\n\n

<\/p>\n\n\n\n

The Blow to Small Businesses<\/strong><\/p>\n\n\n\n

Dilawar Syed, former Deputy Administrator of the U.S. Small Business Administration, warned that Trump\u2019s tariffs are hitting small businesses hard. They account for 97% of importers in the U.S. and are responsible for most employment in the country.<\/p>\n\n\n\n

\u201cSmall businesses lack the resources to closely monitor every sudden policy change affecting the products they import,\u201d he noted, highlighting the risk that uncertainty poses.<\/p>\n\n\n\n

Syed recounted the case of a Latina entrepreneur in ethnic foods who received a $19,500 tariff bill. \u201cShe told me: \u2018I don\u2019t have $19,500 to pay the U.S. government. I can\u2019t pass this cost on to consumers.\u2019\u201d<\/p>\n\n\n\n

He also expressed concern over the collapse in small business confidence, which is at its lowest level in 15 years. \u201cEven worse than during the pandemic or the Great Recession. 58% of small business owners say they are in worse condition than last year.\u201d<\/p>\n\n\n\n

The impact is even more severe in vulnerable communities, particularly among immigrants, who now face restrictions on SBA loans if they have a non-citizen partner. In response, Syed urged entrepreneurs to make their situation visible: \u201cSubmit customs invoices to congress members and send copies to the White House to show that these tariffs act as taxes that are suffocating their businesses.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

On April 2, the President of the United States declared it \u201cLiberation Day\u201d and signed Executive Order 14257, which increases import taxes on several countries. The measure is already affecting consumers, small businesses, and strategic partners such as China, India, Brazil, and Mexico. On a briefing held by American Community Media by American Community Media, […]<\/p>\n","protected":false},"author":1,"featured_media":1473,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[686],"tags":[1277,1040,1459,826,86],"class_list":["post-1454","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-american-community-media","tag-american-community-media","tag-donald-trump","tag-stock-market","tag-tariffs","tag-usa"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/lavoz.us.com\/homepage\/wp-json\/wp\/v2\/posts\/1454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lavoz.us.com\/homepage\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lavoz.us.com\/homepage\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lavoz.us.com\/homepage\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lavoz.us.com\/homepage\/wp-json\/wp\/v2\/comments?post=1454"}],"version-history":[{"count":1,"href":"https:\/\/lavoz.us.com\/homepage\/wp-json\/wp\/v2\/posts\/1454\/revisions"}],"predecessor-version":[{"id":1456,"href":"https:\/\/lavoz.us.com\/homepage\/wp-json\/wp\/v2\/posts\/1454\/revisions\/1456"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lavoz.us.com\/homepage\/wp-json\/wp\/v2\/media\/1473"}],"wp:attachment":[{"href":"https:\/\/lavoz.us.com\/homepage\/wp-json\/wp\/v2\/media?parent=1454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lavoz.us.com\/homepage\/wp-json\/wp\/v2\/categories?post=1454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lavoz.us.com\/homepage\/wp-json\/wp\/v2\/tags?post=1454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}