Why Small Businesses Are Feeling the Heat from Customers | Entrepreneur
Briefly

Why Small Businesses Are Feeling the Heat from Customers | Entrepreneur
"As trade policy keeps shifting, he finds himself wondering: Do I buy this product now and load up? Or, with the tariff uncertainty, should I wait? The volatility ties up his cash and inventory until the bill comes. On top of that, he says his latest order from the German camera company Minox came with a surprise tariff of 16% - and he's stuck in a 10-year contract with them."
"In a June survey by the Small Business & Entrepreneurship Council, 73% of owners said they were concerned about tariffs, and 53% reported that tariffs already had negative effects on their operations. Inflation also remained a top concern. Holly Wade, executive director of research at the National Federation of Independent Business, has seen this kind of anxiety ripping through mom-and-pop shops across the country."
""Owners don't feel confident in the environment they're operating in and aren't sure how to adjust their businesses or move forward," Wade says. "Some are uncertain because of the trade negotiations, others because of immigration reform policies or shifts in consumer spending. Some are caught in long-term contracts. And all of that can lead to hesitancy in investing in their business.""
Small-business owners face sudden, unpredictable tariffs that create cash-flow shocks and inventory decisions. Jake Shivery experienced unexpected tariff bills that made a normal import order unprofitable and forced dilemmas about buying or waiting. Surprise duties, like a 16% levy on a Minox shipment, can collide with long-term supplier contracts. Surveys show widespread concern: 73% of owners worry about tariffs and 53% already see negative operational effects, while inflation remains a major issue. The NFIB's uncertainty index reached record highs. Owners lack confidence in the operating environment and hesitate to invest amid trade negotiations, immigration policy shifts, consumer spending changes, and contractual constraints.
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