How Trump’s Tariffs Are Creating A New Crisis For Black-Owned Small Businesses – Essence
Having a small business is never “easy,” but there have been some special challenges since last April, when President Trump initially invoked his tariffs that sent some businesses spiraling. Since then, things haven’t gotten easier.
Though the Supreme Court struck down his sweeping tariffs in February, ruling that he lacked authority, the president swiftly reinstated global 10% tariffs. The court checked his power, and in return, he found another way to impose his will. Tariffs have already been devastating for many, big and independent businesses alike. It’s caused costs to go up and, in turn, margins to suffer or prices to increase. The topsy turvy nature of trade policy today is especially challenging for small businesses because unpredictability has become the name of the game.
Experts predict this situation is bound to keep hurting Black-owned businesses disproportionately.
Not only do Black entrepreneurs tend to start businesses with less wealth, but “systemic underinvestment in Black entrepreneurs creates barriers across all stages of business growth, from accessing credit for startups to hiring employees and growing revenue,” according to Brookings. When extra costs come in from tariffs, this can upset an already delicately balanced equation.
The squeeze some Black-owned businesses feel right now is especially evident in the world of beauty, products and services alike.
Slayyy Hair founder Diann Valentine received a $300,000 bill in order to get 26,000 units of braiding hair, her business’ main product, from a port in May 2025. Why? Trump had then imposed tariffs on China at a rate of 145%. “To lose that kind of money at this stage has been devastating,” Valentine told Reuters.
By that summer, the impact was hitting salons, too. Dajiah Blackshear-Calloway, who runs a salon in Georgia, noticed her clients weren’t visiting as often, per Reuters’ report. “We’re being impacted at every level. Packs of hair imported from Vietnam and facing new tariffs cost $100 more; glue from China almost doubled. “I’m either having to eat that cost or pass that expense along to my clients, which affects their budgets and their pockets as well,” she told the outlet.
Coming face-to-face with a tariff bill can feel like a gut-punch. Making adjustments to the business and raising prices can feel maddening, also risking pushing similarly squeezed customers away. Keeping up with the chaos? Vexatious.
Right now, Black-owned small businesses remain at risk, and the only certainty is uncertainty.
