Donald Trump’s tariffs have increased prices on popular holiday goods and driven a “massive” number of small firms out of business, industry leaders have warned. On Small Business Saturday, firms are hoping strong holiday sales will ease the impact of a tough year, but many are not optimistic.
“My husband and I have invested a lot of our retirement money into this business,” said Joann Cartiglia, owner of Queen’s Treasures, a toy company in New York. “And now I have absolutely no hope of retirement.” Cartiglia, 64, added: “I honestly feel the government is putting me out of business.”
Small businesses, particularly in retail, rely heavily on the holiday season but are grappling with increased costs, supply chain disruption, and uncertainty due to tariffs. Jared Hendricks of Village Lighting Co in Utah estimates his tariff costs are approaching $1m this year. “At this point, we’ve kind of transitioned from working for profits to working for tariffs,” he said.
Boyd Stephenson, owner of Game Kastle College Park in Maryland, said costs had soared. “The number of toy and game studios that I have seen go under this year is massive,” he said. A survey of 1,048 small businesses found 71% expect tariffs to negatively impact consumer spending this holiday season, and 74% are worried about their business surviving the next 12 months.
A White House spokesperson said the administration maintains that the cost of tariffs will ultimately be paid by foreign exporters, and that the government is implementing a pro-growth agenda for businesses to thrive.
