Tariffs Cause Widespread Small Business Revenue Declines

Small to medium businesses across various sectors, including wholesale trade, retail, manufacturing, and home furnishings, are experiencing significant revenue declines attributed to tariffs, with 44% reporting slumps in June and many expecting further deterioration if tariffs persist. Nearly 80% of Rhode Island manufacturers also anticipate price adjustments and face negative impacts on their bottom lines due to these tariff increases. Industry experts highlight that tariffs are causing long-term economic damage by disrupting supply chains, reducing margins, and eroding small business confidence, with some fearing their survival beyond 2026 if current policies continue. In the U.S. auto industry, tariffs are contributing to inflationary pressures by harming supply chains and increasing transaction prices, thereby complicating Federal Reserve policy decisions. Despite the push for reshoring production, experts argue that Mexico will remain a vital hub for North American vehicle manufacturing because of cost advantages and the complexity of automotive supply chains. This multi-industry impact underscores the broad and escalating economic challenges tariffs pose to American businesses and consumers.