In a recent U.S. Senate hearing, small business leaders rang alarm bells over the Trump administration’s tariff policy, warning it’s pushing many Main Street companies to the brink of bankruptcy.
Liquidity Crunch for Global-Minded Entrepreneurs
Julie Robbins, CEO of audio gear maker EarthQuaker Devices, told senators that tariffs have slashed her export revenue—which makes up 30–40% of total sales in markets like Europe, Australia, Canada and Japan. She described a “liquidity crisis” so severe that some firms may soon have no choice but to close their doors if duties aren’t rolled back.
Big Retailers Brace for Higher Prices
On the retail front, Walmart’s latest quarter underscores the ripple effect: the company posted $165.61 billion in revenue—including a 2.5% year-over-year rise—but fell just short of forecasts. CEO Doug McMillon stressed that even with recent cuts on some imports from the Chinese mainland, current tariffs are “still too high” to absorb. Customers should expect price hikes in essentials from electronics to avocados.
- Revenue: $165.61 B (+2.5%), slightly below expectations.
- Net income fell to $4.49 B from $5.10 B a year earlier.
- E-commerce turned profitable globally for the first time.
- Tariffs on imports from the Chinese mainland and duties on goods from Costa Rica, Peru and Colombia are squeezing margins.
Neil Saunders, managing director at GlobalData, says Walmart’s stance could give other retailers cover to raise prices, creating a chain reaction across G20 markets.
Global Outlook
With small exporters and mega-retailers alike sounding warning sirens, the tariff tug-of-war isn’t just a U.S. issue—it’s reshaping supply chains and consumer prices from East Asian factories to Seattle storefronts. For entrepreneurs, it’s a reminder that policy shifts can ripple across oceans and markets.
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U.S. small businesses 'at risk of bankruptcy' due to tariff policy
cgtn.com
