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Consumer Daily Reports

Supply costs, shifting consumer behavior, falling tourism are terrifying many small business owners

By James R. Hood of ConsumerAffairs
April 15, 2025

Key takeaways:

  • Entrepreneurs nationwide prepare for cost increases tied to new import tariffs

  • Supply chain adjustments, price hikes, and sourcing shifts underway

  • Many owners fear long-term strain on operations, hiring, and consumer demand


As new rounds of President Trump's tariffs loom, small businesses across the United States are scrambling to assess and mitigate the potential economic fallout. The measures include broad import taxes on a wide range of goods, with higher rates for nations running trade surpluses with the U.S.

Business owners say the move has injected uncertainty into already fragile post-pandemic operations.

From retail to manufacturing, owners are reviewing supply chains, forecasting pricing adjustments, and, in some cases, exploring domestic sourcing options to shield operations from what could become a long-term economic shift.

Im terrified for my business, and Im terrified for all the other small businesses in the United States right now, because we dont know what to do, and were invested in our businesses. I could lose my home, and I dont understand it, and I dont know what to do," said Beth Benike, the ownerofBusy Baby, Zumbrota, Minnesota.

"I am abandoning my products in China. I am leaving them there because I simply cannot afford to ship them here," Benike told The Guardian.

Weve already seen material costs jump 8% in the last quarter, said Carmen Liu, owner of a home goods company in Illinois. If tariffs hit as planned, Ill either have to raise prices or cut back on hiring neither is ideal.

Navigating rising costs

Many small businesses rely on international suppliers for raw materials, parts, or finished goods. The proposed tariffs, particularly on electronics, textiles, and auto components, are expected to raise wholesale costs by 1025%, depending on the country of origin.

Were building contingency plans, said Tim Harper, who runs a bike shop in Oregon. If tariffs go into effect, our imported components could cost 20% more were already working with vendors to lock in pre-tariff inventory.

Others, like food and beverage startups, are stockpiling inventory or seeking alternative suppliers in countries unaffected by the new trade rules.

Tourism, travel bookings fall

The ongoing tariffs are having a direct impact on our vacation rental business, with cancellations from Latin American and Canadian guests and a noticeable drop in new bookings from these markets," said Helena Sideris,general manager,Park City Lodging, Park City, Utah. "Combined with rising costs and broader economic volatility, these shifts are creating real pressure on our family business.

In California, the popular winter playground Palm Springs has been feeling a chill. Canadian visitors and winter residents packed up and left early and, while no tumbleweeds have been spotted, the normally bustling downtown area has been eerily quiet lately.

Gov. Gavin Newsom unveiled atourism campaignon Monday urging Canadians to come experience our California Love after seeing a dip in in visits from the United States' northern neighbors who say theyve been alienated by President Trumps policies.

In a videoposted on social media, Newsom focuses on the allure of the Golden State while distancing it from Trumps administration.

Sure, you-know-who is trying to stir things up back in D.C., but dont let that ruin your beach plans, Newsom says, as images of the Golden Gate Bridge and a woman flying a kite on a beach appeared on the video.

Shifting consumer behavior

The concern isnt just about input costs its also about whether customers will absorb higher prices. A recent Numerator survey found that 83% of U.S. consumers plan to alter their spending habits in response to rising costs. For small businesses, this could mean reduced sales or a longer road to profitability.

Consumer spending has remained robust but there are early indicators that consumers may be cutting back.Kikoff, acredit-building platform,surveyed over 1,700 users to understand how inflation, and now tariffs, are reshaping spending behavior.

Key findings include:

  • A majority (85.7%) said inflation has impacted their ability to afford everyday items like gas and groceries

    • Nearly half have used Buy Now, Pay Later (BNPL) options to manage unexpected expenses

    • More than a quarter turned to payday loans

  • Low confidence in the economy

    • About two-thirds of those surveyed rate the current U.S. economy as "poor" or "very poor and believe a recession is likely or very likely in 2025

  • 73% have scaled back summer plans to reduce spending

That's not good news for businesses counting on consumers to continue their habitual spending.

We run a tight margin. A price hike of even 5% can mean the difference between staying afloat or going under, said Marisol Rivera, who owns a boutique skincare brand sourcing packaging from Asia.

Policy and Preparedness

Industry groups like the National Federation of Independent Business (NFIB) and U.S. Chamber of Commerce are calling for clarity and support, urging policymakers to consider how tariffs could compound inflation pressures and slow recovery for small businesses.

"More than 95% of consumers live outside the United States. Selling more U.S.-made goods and services around the world is crucial to American jobs and will help businesses small and large grow. Expanding trade also enhances the competitiveness of U.S. manufacturers while boosting the buying power of American families," the Chamber said on its website.

Meanwhile, some small business owners are hopeful that policy details or legal challenges may delay or soften the impact but many arent waiting to find out.

Weve learned that agility is key, said Harper. Whether its tariffs, supply chain snags, or labor shortages, we have to be ready to pivot fast.


As the business community awaits formal implementation of the tariff plan, small business owners are balancing caution with creativity, determined to protect their livelihoods and adapt to an increasingly volatile economic environment.





Posted: 2025-04-15 23:42:20

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Drab Courtyard to STUNNING Outdoor Living Space #gardening #greathomeideas
Play Video: Drab Courtyard to STUNNING Outdoor Living Space #gardening #greathomeideas


Drab Courtyard to STUNNING Outdoor Living Space #gardening #greathomeideas -- Welcome to Great Home Ideas, your destination for DIY fixes, home makeovers and amazing ways to bring your garden to life. Each week, we’ll be sharing fascinating stories, fresh projects and expert advice to help you transform your space and make your dream home a reality. Whether you’re up for a full on reno or just like to watch other people bring their visions to life, subscribe for inspiration, tips, and easy-to-follow DIY projects. ▶ Subscribe: https://bit.ly/3hxN7d5

Published: 17th Apr 2025 08:00:35   By: Great Home Ideas

DIY Video: Retro Garden Gets Ultra Modern Makeover | Great Home Ideas

Retro Garden Gets Ultra Modern Makeover | Great Home Ideas
Play Video: Retro Garden Gets Ultra Modern Makeover | Great Home Ideas


In this makeover, the team transforms a small, 1970s-era courtyard into a vibrant, modern outdoor living and entertaining space. See how a sloping, outdated patio is turned into a stylish split-level area featuring an archway, decking, and built-in bench seating. -- Welcome to Great Home Ideas, your destination for DIY fixes, home makeovers and amazing ways to bring your garden to life. Each week, we’ll be sharing fascinating stories, fresh projects and expert advice to help you transform your space and make your dream home a reality. Whether you’re up for a full on reno or just like to watch other people bring their visions to life, subscribe for inspiration, tips, and easy-to-follow DIY projects. ▶ Subscribe: https://bit.ly/3hxN7d5

Published: 16th Apr 2025 08:00:58   By: Great Home Ideas

DIY Video: Simple Renter-Friendly Garden Makeover | Great Home Ideas

Simple Renter-Friendly Garden Makeover | Great Home Ideas
Play Video: Simple Renter-Friendly Garden Makeover | Great Home Ideas


Discover how to create the ultimate renter-friendly veggie garden. This makeover demonstrates just how simple it can be by using temporary features that can be easily moved to a new home. Charlie provides some smart tips and design ideas for setting up a usable kitchen garden in a rental home such as including a portable greenhouse, slimline shed and soaker hose, all of which are easy to set up and take away to a new home. 00:00 Gardens For Renters 05:12 DIY Blanket Box -- Welcome to Great Home Ideas, your destination for DIY fixes, home makeovers and amazing ways to bring your garden to life. Each week, we’ll be sharing fascinating stories, fresh projects and expert advice to help you transform your space and make your dream home a reality. Whether you’re up for a full on reno or just like to watch other people bring their visions to life, subscribe for inspiration, tips, and easy-to-follow DIY projects. ▶ Subscribe: https://bit.ly/3hxN7d5

Published: 13th Apr 2025 08:00:49   By: Great Home Ideas

DIY Video: Stunning Outdoor Entertaining Space Built From Shipping Containers | Great Home Ideas

Stunning Outdoor Entertaining Space Built From Shipping Containers | Great Home Ideas
Play Video: Stunning Outdoor Entertaining Space Built From Shipping Containers | Great Home Ideas


Using two recycled shipping containers, Charlie creates a stunning backyard entertainment space complete with a dining area, outdoor kitchen, cozy lounge, and even a rooftop bar. Perfect for any tiny home. With a blend of rustic industrial charm and sleek modern finishes, this container garden proves that upcycling can be both stylish and sustainable. 00:00 Ultimate Container Garden 09:04 Plasterboard Repair 15:25 Hiking With Llamas 21:43 Pumpkin Pasta 27:35 Potato Wall Art 31:53 Ultra-Sustainable Home 38:11 Hot Apple Pockets 43:53 Ivy Leaf Chapel 50:10 Pumpkin Pie -- Welcome to Great Home Ideas, your destination for DIY fixes, home makeovers and amazing ways to bring your garden to life. Each week, we’ll be sharing fascinating stories, fresh projects and expert advice to help you transform your space and make your dream home a reality. Whether you’re up for a full on reno or just like to watch other people bring their visions to life, subscribe for inspiration, tips, and easy-to-follow DIY projects. ▶ Subscribe: https://bit.ly/3hxN7d5

Published: 12th Apr 2025 08:00:34   By: Great Home Ideas

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