The Impact of Tariffs on Small Non-Technology Businesses
DOI:
https://doi.org/10.58445/rars.4062Keywords:
Trade policy, Supply chain, Tariffs, Firm-level effects, Small-and-medium-sized Enterprises (SMEs)Abstract
This study examines how small non-technology businesses respond to the 2025 tariff policies, with a focus on pricing strategies, supply chain adjustments, and the timing of responses. Understanding these effects is important because small businesses play a vital role in the economy and often have fewer resources to absorb sudden cost increases compared to larger firms. Additionally, tariffs are a major policy tool, but their real-world impacts on smaller businesses are not always well understood. Mixed-methods data was collected through a survey of 30 businesses and five in-depth interviews. Fisher’s Exact Tests revealed a statistically significant relationship between price increases and revenue decreases, suggesting that passing costs onto consumers can reduce demand. Businesses also responded more quickly than expected, often within one to three months, challenging the initial hypothesis. Future research could collect larger sample sizes amid a national scope and explore longitudinal studies tracking how businesses fare over time in the aftermath of tariffs.
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