70% Small Businesses Report Tariff Cost Increases Across 13 Countries

A recent HSBC survey reveals that over 70 percent of small and mid-sized U.S. businesses have experienced increased operational costs due to tariffs imposed under the Trump administration, with 77 percent expecting further cost rises by the end of the year. Despite these pressures, more than 90 percent of businesses remain optimistic about international growth over the next two years, many adapting by investing in new technologies and considering domestic production. However, major retailers like Macy’s have cut their full-year profit forecasts and plan to raise prices on certain items to offset tariff impacts, reflecting broader challenges across sectors including retail and manufacturing. Companies report pausing or reconsidering long-term investments due to policy uncertainty and are shifting operations toward domestic markets in the short term while maintaining confidence in global trade growth. This complex trade environment is causing firms to rethink supply chains, investment decisions, and pricing strategies amid ongoing uncertainty. While Trump administration officials claim tariffs have not affected prices, the survey and industry responses indicate significant cost pressures and strategic pivots among U.S. businesses.