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In April of 2025, President Trump announced a 10% tariff on all countries<\/a>, plus a higher reciprocal tariff on select countries with large trade deficits. Although Trump announced a 90-day pause on reciprocal tariffs on April 9 (except China, who now has a 145% tariff), one important question remains: How do tariffs affect small businesses?\u00a0<\/strong><\/p>\n <\/p>\n Tariffs increase costs and supply chain disruptions for small business owners who import goods. On the other hand, domestic manufacturers and producers may actually benefit from the rising tax.\u00a0\u00a0<\/p>\n Here\u2019s what to know about the hot topic of tariffs.<\/p>\n A tariff is a tax or duty that a national government imposes on imported or exported goods. Tariffs can provide revenue to countries, encourage domestic products, and regulate trade.\u00a0<\/p>\n Who is responsible for paying tariffs?<\/strong> The business importing foreign goods is responsible for paying the tax to the government (at the border). So, you\u2019re responsible for paying tariffs if your small business imports goods to the United States.\u00a0<\/p>\n Tariffs are generally a percentage of a product\u2019s value (aka an \u201cad valorem tariff\u201d). A 25% tariff on a $100 product equals $25 in tariffs ($100 X 0.25 = $25). However, tariffs can also be \u201cspecific tariffs,\u201d which is a fixed fee per unit of imported goods (e.g., $5). Here\u2019s an overview of the two types of tariffs:<\/p>\nSkip Ahead<\/h3>\n
What\u2019s a tariff?<\/h2>\n