Me, worry? For US small businesses, Trump’s tariffs are now a non-issue

A year ago it was the hot topic, but business owners have seen there’s a limit to the president’s royal decrees

In two weeks, I’m speaking to a group of companies in the packaging industry about issues affecting their businesses this year. I’m going to discuss the economy, navigating higher costs, leveraging new tax legislation, AI and what companies are doing to find and retain workers in a volatile job market.

That wasn’t the case a year ago. Back then, it was the hot topic everyone wanted to know about. How will tariffs affect my business? Should I increase prices? Is my company going to suffer? Are the tariffs legal? When will they end? In just the past year, a lot of those questions have been answered.

Donald Trump’s tariff increases affected some businesses – particular those heavily reliant on buying materials from China and India – but most seemed to weather the storm. In fact, many of my clients – and those in my audience – took the “tariff” news as an opportunity ( ssshh! ) to increase prices even beyond the cost of the tariffs in order to tuck away a few extra dollars of profit. Others waited out the legal process and, thanks to the supreme court overturning the president’s illegal use of the International Emergency Economic Powers Act, are waiting in line for refunds, which they’ll ultimately receive.

Now, tariffs are back in the news. Facing the July expiration of Trump’s temporary 10% global tariff, the administration this past week announced that it was planning to assess new tariffs ranging from 10% to 12.5% on 60 countries, including trading partners from the UK and the EU to China, India and Australia, for allegedly trading in goods that used forced labor, a strategy allowed under section 301 of the Trade Act of 1974.

Seems like something I should mention in my presentation to the packaging association, right? Not really. Not unless I want to put everyone to sleep. That’s because at this point, and for most businesses, tariffs are a bore. They’ve become a non-issue.

The owners in my audience are mostly profitable this year, thanks to our resilient consumer economy and continued economic growth. Many continue to hire. Their customers have been conditioned to expect price increases, if need be, but that may not even be necessary for some businesses as they take advantage of new tax deductions and productivity gains that can be achieved with technology and AI.

They’ve also seen that the supposed “king” in the White House has a limit to his royal decrees. He has been struck down multiple times in the courts – foreign aid funding, birthright citizenship, national guard deployment, renaming the Kennedy Center – and has been forced to comply with both a judiciary and legislative branch that have curtailed many of his imperial plans. Ask any business owner about these new tariffs and they’ll likely tell you that they expect them to be opposed, litigated and overturned.