Tariffs, Trade & Your Business
When headlines start using words like “tariff hikes” and “trade wars,” it can feel like something only big corporations need to worry about. But that’s a mistake, especially for small business owners. Tariffs aren’t just about politics or international trade; they’re about your margins, your inventory, and in some cases, your survival.
In May 2025, the conversation about tariffs escalated again. New proposals would sharply raise tariffs on Chinese imports—some up to 60%, with plans for auto parts and electric vehicles soaring to over 100% by year’s end. These changes, driven by a broader push to “re-shore” American manufacturing, are hitting small businesses the hardest. Unlike large corporations, most small businesses don’t have dedicated teams to renegotiate contracts, shift suppliers, or absorb cost increases.
So, how do you respond?
This article isn’t about fear. It’s about understanding what’s coming, what to monitor, and what steps you can take now to stay resilient—whether you run a retail store, manage a plumbing company, or operate a niche e-commerce business out of Texas.
What Are Tariffs—and Why Do They Matter to You?
Tariffs are taxes placed on goods imported from other countries. When a new tariff hits, it often raises the price of those imported goods. For businesses that depend on international suppliers, those costs are either absorbed (which lowers profits) or passed on to customers (which can lower demand).
In theory, tariffs are meant to protect American industries by making foreign goods more expensive. In practice, they often disrupt existing supply chains and add unexpected costs for business owners, especially those who rely on bulk purchases of parts, products, or packaging materials.
Right now, proposed U.S. tariffs on Chinese imports are expected to affect categories including:
Electronics and batteries
Automotive parts
Steel and aluminum products
Packaging materials
Certain consumer goods, including tools and appliances
Even if you don’t import directly, your suppliers might. And when they raise their prices, you feel it.
Tariffs on Canada and Mexico
In 2025, President Trump invoked the International Emergency Economic Powers Act (IEEPA) to declare a national emergency, citing concerns over trade deficits, illegal immigration, and the flow of fentanyl into the United States. As a result, the administration imposed a 25% tariff on imports from Canada and Mexico, with a 10% tariff specifically on energy products from these countries.
However, goods compliant with the United States-Mexico-Canada Agreement (USMCA) were exempted from these tariffs. Non-USMCA-compliant goods faced the full 25% tariff, while certain products like energy and potash were subjected to a 10% tariff.
Implications for Small Businesses
These tariffs have broad implications for small businesses, especially those relying on imported goods from Canada and Mexico. Increased costs for raw materials and finished products can squeeze profit margins and disrupt supply chains. Businesses may need to reassess their sourcing strategies, explore alternative suppliers, or consider passing increased costs onto consumers.
What Small Business Owners in San Antonio Should Be Watching
Supply Chain Costs
Are you seeing higher costs on your purchase orders? If you use wholesalers or distributors, start asking them how tariffs may affect their prices. Be proactive, not reactive.
Delays or Unavailability
If your materials come from abroad—even indirectly—expect potential delays. Increased tariffs often disrupt availability as companies scramble to source from new places.
Fluctuating Customer Demand
If prices go up and your customers are price-sensitive (especially true for consumer-facing retail or food businesses), you may need to adjust your strategy, even your offerings.
5 Steps to Prepare—Without the Panic
1. Audit Your Supply Chain
Start by identifying what parts of your business rely on imported goods. Are your paper cups made in China? Is your software reliant on a foreign-based server provider? Get specific. You can’t plan unless you know where you’re vulnerable.
2. Start Sourcing Alternatives
Even if you don’t make changes right now, start collecting quotes from alternate vendors—preferably domestic or from countries not affected by the new tariffs. Look into trade agreements with Mexico or Central America that may offer tariff-free options.
3. Update Your Pricing Strategy
You don’t have to raise prices across the board. Consider a pricing analysis: which products have the smallest margins? Can you bundle services or offer subscriptions to keep revenue steady even as unit costs rise?
4. Educate Your Team and Customers
Be transparent with your internal team about what’s happening. For customers, use messaging that focuses on quality, consistency, and community. Don’t frame it as “we’re raising prices because of tariffs”—frame it as “we’re adjusting to ensure long-term sustainability.”
5. Track Policy Developments (Without Drowning in News)
You don’t need to become a trade expert. But it’s smart to follow business organizations, local chambers, and trusted publications. One helpful free source: the U.S. International Trade Administration’s tariff tool. You can also subscribe to small business-specific updates from the SBA and industry trade groups.
A San Antonio Reality Check
In Bexar County, nearly 90% of businesses are considered small, and most don’t have in-house legal teams, logistics advisors, or trade consultants. For companies operating on slim margins—especially in construction, auto services, or light manufacturing—tariffs aren’t abstract policy. They show up in real ways: cost spikes, delayed shipments, and tough calls on pricing.
San Antonio’s historic proximity to Mexico has long been seen as a competitive advantage. Many local entrepreneurs source materials or goods from across the border to reduce costs and improve turnaround. However, with the latest 2025 tariff orders, including select imports from Canada and Mexico—unless they fully comply with USMCA—business owners must tread carefully.
Cross-border sourcing is still a viable strategy. But it now requires due diligence. Know which of your imports fall under USMCA protections, and work closely with suppliers to ensure full compliance to avoid surprise fees.
Nearshoring isn’t off the table—it’s just more complex.
Final Word: Stay Ready, Not Reactive
Tariffs will likely continue to shift throughout 2025 and into the next presidential term. What matters most is how prepared you are when change hits.
This isn’t about doomscrolling trade headlines or trying to forecast every political move. It’s about building flexibility into your business. The more you diversify your supply chain, educate your customers, and price strategically, the more you can weather the uncertainty.
At Emerge and Rise, we’re committed to helping small business owners across San Antonio and Texas build the resilience they need—whether that means helping you run a supply chain audit, connect with local vendors, or rethink your financial forecasting.
Need help adapting your business strategy?
Emerge and Rise offers tailored support, workshops, and consulting for entrepreneurs navigating complex challenges, including economic shifts like tariffs. Let’s talk about how to make your business more resilient—today and tomorrow. Connect with us.
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