August 19, 2025
Black firms are being battered by everything from financial constraints to deterred expansion as tariff chaos lingers.
The Trump administration’s aggressive stance on tariffs is ravaging small business owners, including Black-owned enterprises.
New data from Small Business for America’s Future show that 80% of over 860 small businesses worry tariffs could force them to close. And 79% fear a U.S. recession emerging in the next 12 months. The fallout is potentially catastrophic as Black businesses are often unable to absorb unexpected cost increases. And they must decide whether or not to boost prices for budget-strapped customers battling inflation.
To boot, Black households are more apt to spend a greater share of income on necessities like food, clothing, and utilities. Those expenses are more prone to being affected by tariffs.
BLACK BUSINESSES DEAL WITH OBSTACLES AMID TARIFF UNCERTAINTY
Simultaneously, around 80% of Black Americans were getting ready to shift their spending habits and buy fewer items, per this report.
Exacerbating matters, unemployment for Blacks in July reached its highest point in nearly four years. The findings could potentially trim spending with Black firms if people become more frugal with their finances.
Although this report disclosed greater optimism about conditions over the next six months, sluggish sales are a mounting worry for small businesses. Eleven percent mention say its “top business problem,” the highest point since February 2021.
Around 52% of Black businesses report that they saw declining sales due to tariffs as of June 2025. Another account projects that U.S. consumers’ share of paying for tariff-related costs will surge to 67% this October from 22% this past June, with Trump disputing the analysis.
With the August 1 tariff deadline by Trump now lifted, Black small business owners have expressed frustrations to BLACK ENTERPRISE on how the charges are harming them.
RESTAURANT OWNER FORCED TO MAKE DIFFICULT DECISIONS
Gladys Harrison is experiencing the tariff sting. She is the owner of Big Mama’s Kitchen in Omaha, Nebraska. The restaurant is known for its oven-fried chicken. The spices and seasonings are blended locally but the ingredients come from several different countries.
Harrison stressed the special ingredients are what make her dishes stand out, but the unpredictable nature of current tariff policies is forcing her to make complex business decisions.
For instance, Harrison had planned an expansion to roll out signature seasonings to grocery stores nationwide, backed by a big marketing campaign. But she says the plan has been scaled down significantly because of tariff uncertainty.
“When I can’t predict what my costs will be from month to month, I can’t commit to the kind of investment that expansion requires.” (She talks more about the impact here.)
UNPREDICTABLE NATURE OF TARIFFS CATCHES THE OWNER OFF GUARD
For Black entrepreneur Legrand Lindor, the unpredictable nature of current tariff policies caught his business off guard. He owns LMI Textiles, a small medical supply and manufacturing company in Milton, Massachusetts. He is the leading distributor for a French firm that makes harm reduction products in Europe. His clients include critical public health organizations like the Boston Public Health Commission and health departments nationwide.
Lindor says his business was hit with a retroactive $5,000 charge on a February shipment that had already been delivered when aluminum-based product tariffs were implemented. Plus, he says, his firm’s most recent shipment received an increased tariff of 50%. That meant instead of paying $4.000 in pre-February times, the firm now faces a $15,000 tariff bill for the items.
“This kind of surprise cost is devastating for a small operation like mine,” Lindor says.
He is encountering medical supply challenges, with those product lines facing pressure from many directions. He reflected further on how his firm is being affected by tariffs.
COST OF SUPPLIES FOR THIS PROPRIETOR HIT DOUBLE-DIGIT LEVELS
For Katrina Golden, owner of Lil Mama’s Sweets & Treats in Augusta, Georgia, the tariffs are affecting businesses like her bakery and coffee shop differently than large corporations.
For example, her Chinese supplier offered the chance to lock in coffee cup prices at $225 per case before tariffs hit; however, she couldn’t take advantage of that opportunity.
“Unlike big businesses, I don’t have the cash flow to make bulk purchases that could save money in the long run,” she says. “There is no wiggle room in my bottom line.”
Another blow has been rising costs. Golden says the cost of nearly everything needed to run the business grew by 20-25%. This includes basic supplies like flour, parchment paper, napkins, paper plates, butter, sugar, and spices.
“My coffee cups are expected to jump from $225 to potentially $300-400 per case for my next order, and I only have about 60 days of supply left,” she says. “I would hire two more employees today if I knew I could afford to keep them, but how do you create a sustainable business plan when policies change so rapidly? I currently employ four people, and we’re all feeling the uncertainty.”
Lindor summed up the devastating impact of tariffs.
“We don’t have the resources that large corporations must absorb these kinds of sudden changes. This has certainly curtailed our plans to open our own warehouse and provide additional jobs.”
RELATED CONTENT: Financing Groceries: More Shoppers Are Buying Now And Paying Later For Food
