Trump’s Tariffs Threaten Small Businesses During Holiday Season

Trump’s Tariffs Threaten Holiday Cheer for Small Businesses

Donald Trump’s tariffs have increased prices on an array of popular holiday goods and driven a “massive” number of small firms out of business, industry leaders have warned.

On Small business Saturday,firms have their fingers crossed that strong holiday sales will ease the impact of a tough year. But many aren’t holding their breath.

“My husband and I have invested a lot of our retirement money into this business,” Joann Cartiglia,owner of Queen’s Treasures,a toy company in Ticonderoga,New York,said during a press briefing organized by We Pay the Tariffs,a coalition of small businesses,this week. “And now I have absolutely no hope of retirement.”

“I honestly feel the government is putting me out of business,” added Cartiglia, 64.

Lawsuits, opposition from big business, and pleas for help from small importers have failed to persuade the Trump administration to reconsider its aggressive strategy on trade from overseas, which the US president claims will raise trillions of dollars for the federal government.

Opponents of tariffs are “serving unfriendly foreign interests”, Trump has claimed.

Tariffs threaten Holiday Sales, Small Businesses Report

Washington, D.C. – November 29, 2025 – Small businesses across the United States are bracing for a potentially tough holiday season, citing the significant impact of ongoing tariffs on their costs and consumer spending. Many report being forced to prioritize paying off tariff debts over reinvesting in their businesses, and fear the situation will worsen if tariff relief isn’t provided.

“We’ve kind of transitioned from working for profits to working for tariffs,” said Neil Hendricks, representing a coalition of holiday goods importers. “We are just in business to pay off our tariff debt.”

The concerns center around tariffs imposed on imported Christmas trees,lighting,and othre holiday decorations. Hendricks warns that price increases consumers are currently experiencing will likely be dwarfed next year if the 2026 tariff season isn’t addressed. He emphasized that shifting production to the U.S. is not a viable solution. “American manufacturing has never done Christmas goods, so it’s not responsible for taking away any jobs,” he stated. “The supply chain for Christmas items is simply too complex, and would take billions of dollars and decades to rebuild. And even then, the workforce isn’t sufficient to support it.”

The impact is being felt across various sectors. Boyd Stephenson, owner of Game Kastle College Park in College Park, Maryland, reported soaring costs due to the tariffs.”Most of my manufacturers and publishers don’t really have the space to absorb, or to pass on price increases to their customers, so they’re getting squeezed,” Stephenson said. “The number of toy and game studios that I have seen go under this year is massive.” He added that despite the recent end of the federal government shutdown, anxieties remain high.

A recent survey by Small Business for America’s Future,encompassing 1,048 small businesses,found that 71% of owners anticipate tariffs will negatively impact consumer spending this holiday season,with 44% expecting a “very negative” impact. The survey also revealed that 44% of small businesses have already raised prices due to tariffs, and a concerning 74% are worried about their business’s survival over the next 12 months.

The Biden administration maintains its position that the costs of tariffs will ultimately be borne by foreign exporters. White House spokesperson Kush Desai stated, “As tariffs secure new trade deals and trillions in investments to make and hire in America, the Administration is concurrently implementing a pro-growth agenda of tax cuts, deregulation, and energy abundance for big and small businesses alike to thrive again as they did during President Trump’s first term.” https://www.whitehouse.gov/briefing-room/statements-releases/

Though, small business owners remain skeptical, highlighting the immediate and detrimental effects of the tariffs on their operations and the potential for a subdued holiday shopping season. the situation underscores the ongoing debate surrounding the effectiveness and consequences of the administration’s trade policies.