SMBs pass on tariffs

Small businesses are no longer waiting out tariff swings. By April 2026, most were raising prices or changing suppliers to keep goods moving. (globenewswire.com) Netstock said on April 22 that 82% of U.S. small and midsize businesses now pass tariff costs to customers, up from 57% a year earlier. The same report said 33% have switched suppliers and 32% have delayed or canceled expansion plans. (globenewswire.com) Netstock also found 61% of those businesses are using analytics tools to model tariff scenarios, more than double the 28% reported in 2025. FreightWaves said the shift shows smaller importers moving from a “wait-and-see” approach to active changes in sourcing, pricing and inventory planning. (globenewswire.com) (freightwaves.com) A tariff is a tax paid by the U.S. importer when goods enter the country, not by the foreign exporter. The U.S. Chamber of Commerce says those added costs often flow through to business buyers and consumers, especially when smaller firms lack the cash to absorb them. (uschamber.com) That pressure is landing during a period of unusually high uncertainty for small firms. The National Federation of Independent Business said its Small Business Optimism Index fell to 95.8 in March 2026, below its 52-year average of 98.0, while its Uncertainty Index rose to 92 from 88 in February. (nfib.com) Manufacturers are also carrying more goods while orders keep moving only modestly. The Census Bureau said on April 10 that manufacturers’ inventories rose for a fifth straight month in February to $950.5 billion, while the inventories-to-shipments ratio edged down to 1.53 from 1.55 in January. (census.gov) Freight markets have already shown how quickly tariff shocks can hit supply chains. FreightWaves previously reported that a 145% tariff on Chinese goods contributed to a 42% drop in containerized import bookings from China to the U.S. in April 2025. (freightwaves.com) Large companies can spread those shocks across bigger supplier networks, longer contracts and larger balance sheets. The Chamber said broad-based tariffs are “an especially big problem” for small businesses because they have fewer resources to withstand abrupt cost changes. (uschamber.com) The result is showing up at the checkout line and in the vendor list. For many small manufacturers, distributors and retailers, tariff policy is now being managed one price increase and one supplier swap at a time. (globenewswire.com) (freightwaves.com)