U.S. small businesses are facing tough times as current tariff policies put them at risk of bankruptcy. Business leaders have warned that these measures, implemented under U.S. President Donald Trump, are creating a severe liquidity crisis, especially for companies that rely heavily on export sales.
At a U.S. Senate Small Business & Entrepreneurship Committee hearing, Julie Robbins, CEO of EarthQuaker Devices, revealed that tariffs have made it increasingly difficult to recover business investments. With 30-40% of their revenue coming from exports to key markets such as Europe, Australia, Canada, and Japan, the pressure is mounting. ⚠️
Meanwhile, Walmart reported mixed results for its fiscal first quarter ending April 30. Despite revenue of $165.61 billion, which edged up 2.5% year-over-year, the retail giant narrowly missed revenue expectations. Walmart CEO Doug McMillon and CFO John David Rainey warned that rising tariffs—even after a temporary reduction on imports from the Chinese mainland—are likely to force prices higher for consumers. 📈
This situation is raising concerns that the cost increases seen at big retailers could trigger a domino effect on prices across the board. It’s a bit like that unexpected plot twist in your favorite series where everything shifts, leaving both businesses and consumers feeling the pinch. 💸
As small business owners and retail giants alike call for a reevaluation of tariff measures, many are holding their breath to see if policy adjustments will bring much-needed relief. The coming months will be crucial in determining whether these economic pressures can be eased or if the trend of rising costs will continue.
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U.S. small businesses 'at risk of bankruptcy' due to tariff policy
cgtn.com
