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Small Businesses Take the Brunt of the Tariff Blow

April 24, 2025
By: DRL Group

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As the current administration continues to impose higher tariffs on countries worldwide, confidence and uncertainty among individual investors, small businesses, and corporations plummet.

According to Apollo Global Management’s Chief Economist, Torsten Slok, the potential impact of the current tariffs, particularly with China, is staggering. If they remain in effect, the number of small business bankruptcies will skyrocket.

Small businesses have little working capital and will take the most significant hit compared to larger corporations, which are better equiped to absorb tariff price increases.

Slok said that in addition to an increase in bankruptcies, job losses will also soar as small businesses employ 80% of all workers in the US. He said that as many as 70% of these businesses that sell on Amazon, source their goods from China. He also added that 40% of all imports from China go to small businesses. Also, according to Amazon, in 2023, these independent sellers on its platform employed nearly 2 million people in the US.

Small businesses, due to the quick implementation of these tariffs, found themselves in a situation where they lacked the time to prepare and adjust to the possibility of new sources of their goods.

With time not on the side of small businesses, the urgency of resolving the tariff issue cannot be overstated. It is critically important to resolve this matter quickly as it affects a significant percentage of US livelihoods in this crucial area of the economy.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

By: DRL Group

Sign up now to receive the free Muni Market Insider – Your Ultimate Guide to Tax-Free Investing!

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Subscribe to receive the weekly Muni Market Insider – Your Ultimate Guide to Tax-Free Investing!

Stay Ahead of the Curve with expert analysis on:

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  • Tax-advantaged opportunities to maximize your returns
  • Market trends & economic shifts impacting local governments
  • Exclusive interviews with leading muni bond strategists

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