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Tariffs Squeeze Small Businesses, Leading to Layoffs

9/29/2025

50 12 Full Breakdown

Summary

Story summary

Tariffs harm small U.S. businesses and profit margins.
Some large firms absorb costs; smaller firms cannot stockpile or raise prices without losing customers.
Brandon Mills, CEO of Total Promotion Company, laid off an employee due to tariff costs.
Tariffs cost Lori Andre, owner of Lori’s Shoes, more as Federal Reserve finds 86% of small importers have fewer than 50 employees.

History

Historical Context

The Smoot-Hawley Tariff Act, signed by President Herbert Hoover on June 17, 1930, raised tariffs on over 20,000 goods to protect U.S. industries during the Great Depression. This protectionist measure led to a 66% decline in international trade, exacerbating the economic crisis. Its legacy continues to influence current tariff debates, as small businesses today face similar pressures from rising import costs.

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Story summary

Tariffs harm small U.S. businesses and profit margins.
Some large firms absorb costs; smaller firms cannot stockpile or raise prices without losing customers.
Brandon Mills, CEO of Total Promotion Company, laid off an employee due to tariff costs.
Tariffs cost Lori Andre, owner of Lori’s Shoes, more as Federal Reserve finds 86% of small importers have fewer than 50 employees.

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