SMEs Struggle as US Tariffs Drive Up Costs and Cut Shipments

Survey: SMEs Feel the Brunt of US Tariffs

A new Freightos survey of 336 U.S. SMEs between August 19 and September 9 shows nearly half have seen costs soar by more than 20 percent thanks to Washington’s tariff policies. Almost the same share report cutting shipment volumes as they grapple with higher duties and unpredictable trade rules.

"Small- and medium-sized businesses are bearing the brunt of the trade war," says Adam Lewis, president of Clearit Customs Brokerage. "They don't have the insulation or sophistication of larger firms to absorb frequent tariff changes, currency swings, and rising costs."

Consumer Impact and Rising Poverty

Beyond businesses, U.S. households are also feeling the squeeze. Yale’s Budget Lab analysis finds that tariff-driven price hikes are eroding purchasing power and could push between 650,000 and 875,000 more Americans below the poverty line. Inflation-indexed poverty thresholds are rising with costs, even as most incomes stay flat.

Long-Term Shifts in Trade

Nearly 60 percent of survey respondents say current policies have weakened the U.S.’s standing as a reliable trading partner. "We are witnessing not just temporary disruption, but potentially long-term structural changes to international sourcing and pricing strategies," warns Judah Levine, head of research at Freightos.

What’s Next?

With the average import tax rate now over 18 percent—the highest since 1933—small businesses and consumers alike are bracing for potential new duties. The U.S. Supreme Court is set to hear a challenge to the tariff authority in early November, a decision that could reshape trade policy for years to come.

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Survey shows U.S. tariffs inflict severe toll on SMEs

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