Small Businesses Feel the Pain of Tariffs and Economic Uncertainty 

As the owner of a small business, Bree Sanders is in a tough spot. The prices of ingredients for the protein shakes and tea bombs she sells at Whiteville Nutrition have risen every month this year, she said. Each box of vitamin B-12 is $11 more than it was in January. Her herbal tea is $6 more per box. She orders at least a box of each three times per week.

“I’m definitely making less money now,” said Sanders, who has owned the downtown shop since last May. “Do I want to raise prices? Yes. Should I? Yes. But if I do, then I feel it would damage my reputation as a passionate member of the community.”

Two blocks away on Madison Street, the owners of Todd’s Clothing are waiting longer for overseas shipments. That can be a problem for customers who order prom dresses and wedding gowns and are bound to a tight schedule, said Pansy Todd, who owns the store with her husband.   

“Customers come in and they might need it for something,” Todd said. “They might have an event, and it takes two extra days, that might fall on, after their event to come pick it up.”

Many small business owners say they are struggling with rising costs, shipping delays, and economic uncertainty as President Donald Trump’s administration levies higher tariffs on goods from a number of countries. Some, like Sanders, say they’re trying to keep prices steady for customers–but that puts the financial burden on them. 

“My people are devout regulars, and I love helping them on their wellness journeys,” Sanders said. “I’m not in this for the money, but I do need to feed my kids and keep the roof over my head.”

It’s not just the tariffs. Two in five North Carolina residents said inflation concerns have affected many of their spending decisions this year, a February High Point University survey found. A similar number said they believe inflation will be higher in 12 months. 

Inflation rose by 2.3 percent in April, lower than what economists had expected but above the Federal Reserve’s goal of no more than 2 percent. And experts say the cost of goods—everything from groceries to gasoline—could continue to rise as businesses pass on the cost of increased tariffs to customers. 

The uncertainty surrounding tariffs affects nearly every facet of the business market. Japanese automaker Toyota said Trump’s 25 percent tariffs on vehicles made abroad would cost the company $1.3 billion in April and May alone. Walmart said it would raise prices. 

But tariffs can deal a particularly hard blow to mom-and-pop shops, which often have razor-thin profit margins. 

“Small businesses are more vulnerable because they have smaller savings and investments to apply in emergencies,” said Michael Walden, an economist and professor at N.C. State University. 

‘Who Knows?’

About 20 percent of Columbus County residents live in poverty, compared to 13 percent statewide. Residents who are forced to tighten their household budgets are likely to cut back on things they consider luxuries. 

“If you only have $100 to spend, you’re going to spend it on groceries, not a new cell phone,” said Nick Tiger, owner of ZNA Phone Repair in Elizabethtown. 

Tiger said all of his store’s merchandise—phone cases, tablets, and computers—comes from China. He said he would have no choice but to pass on higher costs from tariffs to customers. 

“It’s been slow,” Tiger said. “I’ve been here for seven years, I feel like I have a solid baseline on what I’m supposed to make. This year is 40 percent down from that.”

While consumer spending rose nationwide in February and March, economists say the increase was largely driven by fear that tariffs would drive up the cost of cars, appliances, and other goods. 

Chao Pham, owner of Perfect Nails in Whiteville, estimates she has seen 10 percent fewer customers this year. Meanwhile, the cost of polish and other supplies has increased by 15 percent.  

When people are strapped for cash, Pham said, services like manicures are among the first things they cut. 

“It’s incredibly stressful,” she said. “The bills stack up and we need help, but I don’t have customers who can afford more than what I charge.”

Pham’s business, like many across rural southeastern North Carolina, has suffered a series of setbacks over the last decade. Her previous location sustained flooding during Hurricane Matthew in 2016. She raised enough money to open her new shop in late 2019, but then the pandemic shuttered the salon for more than a year. She finally started to feel financially solid again late last year, but now she’s not so sure. 

“I’m still going to come to work every day,” she said. “But mentally and emotionally, this all takes its toll.” 

Ricky Leinwand, who owns Leinwand’s clothing store in Elizabethtown, said he has encountered numerous tariff-related issues. He said 80 percent of his merchandise comes from abroad. 

“We get suits from China, Vietnamese sneakers, pants from Mexico,” he said. “No part of our business would be spared from those tariffs.”

Leinwand’s has served Bladen County customers for 90 years. With the future in flux, Leinwand said he’s ordered extra merchandise to lock in prices and avoid shipment delays. But there’s still a risk. Last month, he got a letter from a suit supplier in China warning that prices were not guaranteed.  

“I’m set for the next six months or so,” Leinwand said, “but beyond that, who knows?”

‘Out of My Pocket’

Like most of rural North Carolina, voters in Bladen and Columbus counties overwhelmingly backed Trump last fall. While Barack Obama won Bladen in 2008 and 2012, voters here opted for Trump in the next three elections—part of a larger shift toward Republican candidates in rural southeastern North Carolina.  

Some voters in the region say they are frustrated by the lack of economic opportunity and believe Republicans are better equipped to improve their day-to-day lives.

Tiger said that despite the short-term pain, he believes Trump’s policies will benefit him and the country in the long run. 

“Election years are always tough because the economy gets a shakeup,” he said. “This year, things are happening more than usual, so people are scared about what’s going to happen.”

Over time, he believes customers will grow accustomed to higher prices. 

Pham disagrees. Trump’s economic policies are frustrating, she said, because they do nothing to help poor families.

“I don’t agree with what he’s been doing and a lot of the things he wants to do,” she said. “It’s about who will help low-income people. Who will look out for me?”

For Sanders, the spring weather has led to an increase in foot traffic at Whiteville Nutrition. But that’s less of a relief than it might normally be. 

“I’m having to order more now that it’s busier,” she said. “Each time it gets more and more expensive. All that ultimately comes out of my pocket.” 

Ben Rappaport is a reporter at the Border Belt Independent. A graduate of the Hussman School of Journalism & Media at UNC-Chapel Hill, he previously worked for the Chatham News + Record.

Heidi Pérez-Moreno is a reporter at the Border Belt Independent. She previously wrote for the Washington City Paper and spent nine months covering travel and local transportation for The Washington Post. She graduated from UNC-Chapel Hill, and she calls Miami home.