According to some reports, Jared Hendricks of Village Lighting Co. in Utah says his tariff costs have reached nearly $1 million. “We’ve transitioned from working for profits to working for tariffs,” he said.
On the other hand, Hendricks warns that prices for Christmas products could rise even further next year unless tariff relief is provided. He explains that the U.S. lacks the infrastructure needed to replace foreign supply chains for holiday goods.
Moreover, the toy and game businesses are suffering. Boyd Stephenson, who owns Game Kastle College Park, says that rising costs are squeezing his suppliers.
A survey of over 1,000 small businesses found that 71% expect tariffs to hurt consumer spending this holiday season. Nearly half have raised prices, and 74% are worried about staying afloat into 2026.
Despite widespread concerns, the Trump administration presents the tariffs as a path to long-term gains. A White House spokesperson said tariffs will pressure foreign exporters while fuelling new trade deals and domestic investment. The administration believes its broader agenda of tax cuts and deregulation will support small business growth.
Financial Markets Under Pressure
The Trump trade war is also putting pressure on financial markets. The S&P 500 has rebounded from the support of an ascending broadening wedge at 6,500. A breakout above the record level could push the index toward 7,100.