In the ever-changing landscape of international trade and economics, small business owners are often the first to feel the effects of sweeping policy changes.
One such business owner, who runs a small fashion brand, recently took to TikTok to voice his concerns about how the Trump administration’s tariffs on imported goods are affecting his company.
In a viral video, he outlined three major ways the tariffs are disrupting his operations, profits, and ability to compete in the market.
The small business owner, who has built his fashion brand from the ground up, highlighted that while large companies might have the resources to weather such storms, it’s entrepreneurs like him who face the brunt of these policies.
The tariffs, which were implemented as part of President Trump’s trade war with China and other countries, have had unintended consequences on industries far beyond just agriculture and technology. Fashion, too, has found itself in the crosshairs of these trade policies.
1. Increased Costs for Imported Materials
The first and perhaps most immediate impact on the small business owner’s brand comes from the sharp rise in the cost of imported materials. As fashion brands rely heavily on materials sourced from other countries—often from Asia or Europe—higher tariffs have meant that the cost of these essential supplies has skyrocketed.
The owner of the fashion brand explained in the TikTok video that his company’s production costs have increased significantly, which directly affects his bottom line.
These higher material costs are often passed on to consumers, which can lead to a decrease in sales if customers are unwilling to pay more. For smaller companies, this added expense can be devastating, as they don’t always have the same purchasing power or flexibility as larger corporations.
The business owner mentioned that it has become increasingly difficult to maintain competitive pricing while still ensuring a quality product. As a result, he’s been forced to reevaluate his entire supply chain to try and keep his brand afloat.
2. Sourcing Challenges and Supply Chain Disruptions
Another critical issue that the fashion brand owner pointed out is the disruption to his supply chain. With tariffs in place, sourcing goods from international suppliers has become more complicated and time-consuming.
Many companies in the fashion industry rely on just-in-time manufacturing, where products are made and shipped quickly to meet consumer demand. But the new tariffs have led to delays, additional paperwork, and rising shipping costs—putting stress on this streamlined process.
The business owner also shared that many of his suppliers have raised their prices or, in some cases, stopped doing business with companies in the U.S. altogether.
This creates a ripple effect, leading to shortages of essential materials, longer lead times, and a generally more unreliable supply chain.
These issues are particularly problematic for small businesses that don’t have the resources to source from multiple suppliers or absorb the financial strain caused by these disruptions.
3. The Impact on Exporting and Global Competitiveness
The third major concern that the fashion brand owner expressed in his TikTok video is the negative effect these tariffs have had on his ability to export products.
As a small brand that seeks to reach global markets, the increased cost of goods due to tariffs makes the products he sells less competitive in international markets.
The brand owner pointed out that many of his competitors in Europe and Asia are not affected by the same tariffs, giving them a significant price advantage.
For businesses like his, which rely on selling abroad to expand their customer base, these barriers to trade are incredibly damaging. Higher costs on U.S.-made goods create an unequal playing field, as overseas customers are increasingly turned off by the rising prices of American-made fashion items.
This makes it harder for small fashion brands to grow and scale globally, ultimately limiting their reach and potential profits.
What Does This Mean for Small Businesses?
The fashion brand owner’s TikTok video sheds light on the struggles that many small business owners face under the weight of tariffs. While large corporations may have the financial means to adjust to these new policies, smaller businesses like his often find themselves in a precarious position.
With limited resources, small business owners have to make tough decisions about raising prices, adjusting production schedules, or even finding new suppliers—decisions that could potentially alienate customers or harm the brand’s reputation.
Tariffs, while designed to protect U.S. businesses and reduce the trade deficit, have often had unintended consequences for the very small companies they were meant to protect.
These businesses are now left to navigate a complex and increasingly hostile trade environment where the global market is not only changing but also becoming more difficult to access.
A Call for Change
As more and more small business owners like the fashion brand owner speak out about the effects of these tariffs, there is growing concern that without changes to the policies, many smaller companies may be pushed out of the market.
For now, this fashion brand owner is left to reassess his business strategies, but he remains hopeful that policy changes may alleviate some of the challenges faced by smaller enterprises in the near future.
To hear more about the fashion brand owner’s experience, check out his full TikTok video here: Watch the full TikTok video.
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