Industry leaders warn that Donald Trump’s tariffs have driven up prices on popular holiday goods and put scores of small companies out of business.
On Small Business Saturday, firms said strong holiday sales would offset the impact of a difficult year. But many people are not holding their breath.
“My husband and I have invested a lot of our retirement money in this business,” said Joan Cartiglia, owner of Queen’s Treasures, a toy company in Ticonderoga, New York, during a press briefing organized this week by We Pay the Tariffs, a coalition of small businesses. “And now I don’t look forward to retirement at all.”
“I honestly feel like the government is putting me out of business,” said Cartiglia, 64.
Lawsuits, opposition from big business, and pleas for help from small importers have failed to convince the Trump administration to reconsider its aggressive strategy on trade from abroad, which the US president claims will raise trillions of dollars for the federal government.
Trump has claimed that opponents of the tariffs are “serving hostile foreign interests.”
Small businesses, especially in the retail industry, typically rely heavily on the holiday business season, but are struggling with increased costs, supply chain disruptions, logistics issues and uncertainty due to tariffs.
The tariffs have hit some small businesses particularly badly, as they often have smaller margins – and are less able to absorb the costs, or secure rebates, than larger companies.
Jared Hendricks has been running Village Lighting Company in West Valley City, Utah, which specializes in holiday lighting and decorations, for over 20 years. He estimates his tariff costs so far this year are approaching $1 million.
“At this point, we’ve kind of transitioned from working for profits to working for tariffs,” Hendricks said. “We’re just in business to pay our tariff debt.”
But some operators predict the problem is likely to get worse.
“Any price increases that you see in the holiday industry for your Christmas trees, your lighting, your other decorations, they will be less this year than next year unless there is tariff relief for the 2026 season,” Hendricks said. “American manufacturing has never made Christmas goods, so it is not responsible for taking away any jobs.
“The supply chain of Christmas goods is very complex, and it would take billions of dollars over decades to build the infrastructure to move that production here. And then, even if you did that, the workforce is not large enough to support it.”
Boyd Stephenson, owner of Game Castle College Park in College Park, Maryland, said the company’s costs have increased because of the tariffs. “Most of my producers and publishers don’t really have the room to pass the price increases on to their customers or absorb them, so they’re getting screwed,” he said. “I’ve seen a huge increase in toy and game studios this year.
“Up until a month ago, I’d say: ‘Hey, most of the federal workforce is not employed, so we’re looking at a terrible holiday season.’ “But even after the shutdown is over, we are still very scared.”
A survey of 1,048 small businesses conducted by Small Business for America’s Future found that 71% of small business owners expect tariffs to have a negative impact on consumer spending this holiday season, and 44% expect a very negative impact.
Nearly 44% of small businesses surveyed reported rising prices due to tariffs, and 74% reported being concerned about the survival of their business over the next 12 months.
White House spokesman Kush Desai said, “The Administration has consistently said that the cost of the tariffs will ultimately be paid by foreign exporters who depend on access to the U.S. economy, the world’s largest and best-selling consumer market.” “As tariffs secure new trade deals and trillions of investments into America, the Administration is simultaneously implementing a pro-growth agenda of tax cuts, deregulation and energy abundance to help businesses big and small thrive again as they did during President Trump’s first term.”
<a href