Small businesses fear economic collapse due to Trump’s proposed tariffs

In Pittsburgh, small business owner Yega Tita-Costia is voicing her concerns regarding proposed tariffs announced by President-elect Donald Trump. The intended tariffs target goods imported from Mexico, Canada, and China as part of Trump’s strategy to curb illegal immigration and drug smuggling. Tita-Costia has operated her business since 2019 and has remained committed to its foundational principles. However, the prospect of these tariffs introduces a level of uncertainty that raises alarms not only for her profitability but also for the broader small business community. The tariffs could lead to a significant rise in costs for products that are primarily sourced from overseas, particularly China, where Tita-Costia sources 90% of her inventory. The potential increase in her expenses could rise dramatically, with estimates suggesting that costs associated with a $4,000 order could skyrocket from $250 to approximately $1,300. This hike translates to an increase of over a dollar for each individual item sold. Faced with these changes, Tita-Costia might have to choose between accepting lower profits or passing the increased costs onto her customers. She highlighted the dangers of small businesses becoming collateral damage in a larger political struggle, emphasizing that the emotional toll impacts not just the owners but also their families and communities. In the wake of potential tariffs, many local businesses are contemplating their next steps in an uncertain economic environment, which may force drastic adjustments to their pricing and operations.