.jpg)
The trade war between the United States and China has had a profound impact on American businesses, especially small and medium-sized enterprises. While the announcement of a 90-day tariff truce under former President Donald Trump’s administration initially brought hope for relief, many small business owners continue to face significant challenges navigating the repercussions of ongoing trade tensions.
What Was the 90-Day Tariff Deal?
In May 2019, after months of escalating tariffs between the U.S. and China, the Trump administration agreed to a 90-day pause on planned tariff increases. This temporary truce was intended to give negotiators time to work on a more comprehensive trade agreement and to ease pressure on American companies and consumers dealing with rising import costs.
The deal delayed the increase of tariffs on hundreds of billions of dollars’ worth of Chinese goods, aiming to stabilize markets and provide small businesses with some breathing room. Yet, despite this pause, the strain on many businesses did not fully alleviate.
Small Businesses Still Feeling the Pinch
Although the 90-day pause was welcomed, the realities for small business owners were far more complex. Many had already been grappling with increased costs for raw materials, supplies, and finished goods due to the tariffs imposed earlier. The halt merely postponed further pain without reversing the damage already done.
Small retailers and manufacturers, which often operate with tight profit margins, found it difficult to absorb the higher prices without passing them on to consumers. However, raising prices risked losing competitive edge in crowded markets. Some businesses had to make difficult choices, cutting back on inventory, reducing staff, or delaying expansion plans.
Supply Chain Disruptions and Uncertainty
Beyond the immediate financial strain, ongoing uncertainty around trade policies complicated long-term planning for small businesses. Many companies reported disrupted supply chains as they struggled to source affordable products or found themselves navigating fluctuating tariff rates.
This unpredictability made budgeting and forecasting challenging, further limiting small businesses’ ability to invest in growth or innovation. The risk of tariffs being reinstated or escalated at any time also contributed to a cautious, defensive business mindset.
Adapting to a New Normal: Strategies Small Businesses Use
Despite these obstacles, many small businesses are adapting creatively. Some are diversifying their supplier base to reduce dependency on China, seeking local or alternative international sources. Others are investing in inventory management technologies to optimize costs.
Additionally, a growing number of companies are re-evaluating their product lines to focus on higher-margin or domestically produced items. Collaboration with other small businesses and community support initiatives are helping some enterprises weather the storm.
What Lies Ahead?
Although the 90-day tariff deal brought temporary relief, small businesses continue to navigate a complex and often unpredictable trade environment. The ongoing challenges highlight the importance of flexible business strategies and the need for policies that consider the realities faced by small enterprises.
Experts suggest that long-term solutions will require sustained dialogue between governments, better support mechanisms for small businesses, and strategic investments in supply chain resilience.
The 90-day tariff truce under the Trump administration was a brief pause amid a larger trade conflict that has had lasting effects on small businesses across America. While the deal prevented immediate tariff hikes, the cumulative impact of trade tensions continues to challenge small business owners striving to maintain profitability and competitiveness.
For many, adapting to this volatile landscape remains a work in progress, underscoring the need for ongoing innovation, flexibility, and policy support to help small businesses thrive.
.jpg)