As of April 4, 2025, President Trump has put a series of tariffs in place that are making it more expensive to import goods into the U.S. These tariffs basically act as extra taxes on products coming from other countries. That means everything from raw materials to finished products is going to cost more, which could have a big impact on your bottom line. For small businesses and independent workers who don’t have the financial cushion of big corporations, you’ve probably already noticed that things are getting even pricier. And unfortunately, this could be just the beginning.

What Does This Mean for Small Business Owners and Freelancers?

If you run a small business or freelance for a living, you already know how tough it can be to keep your costs low and your profits steady. But with these new tariffs, things are getting even more challenging. Many small businesses rely on imported goods—whether it's raw materials, tech components, or finished products—and these added taxes mean higher prices across the board.

For example, some business owners who sell physical products are already seeing their suppliers raise prices. For instance, packages valued at $800 or less from China and Hong Kong that were previously allowed tax-free entry to the U.S. are now subjected to duties of 30% or $25 per item, increasing to $50 after June 1. Shipping fees are also creeping up. And for those who work in industries like e-commerce, design, or tech, the cost of equipment and supplies could increase as well. Some business owners might be able to pass these costs onto customers, but with inflation and consumer sentiment already very low, others might have to absorb them, cutting into their already tight margins. 

A Tough Time for Creative Freelancers & Crafting Businesses

If you’re a creative freelancer or craft-based entrepreneur, this news might be hitting especially hard. Many artists, jewelry makers, and crafters rely on specialty materials—fabric, beads, paints, paper, and other supplies—that often come from overseas. With these new tariffs, those materials are getting more expensive.

That means if you sell handmade items on Etsy, at craft fairs, or through your own online shop, your costs are rising, but your customers may not be willing to pay higher prices. This puts you in a tough spot: either raise prices and risk losing customers, or keep prices the same and make less money on each sale. It’s frustrating, especially for independent creators who don’t have the massive budgets or buying power of big retailers.

How to Adjust and Stay Afloat

While these changes are challenging, there are a few ways to adapt:

1. Look for Alternative Suppliers – If your usual materials or supplies are getting too expensive, it might be time to research domestic suppliers or find alternative materials that won’t break the bank.
2. Reduce Waste & Streamline Costs – Now is a good time to take a closer look at your business expenses. Are there areas where you can cut costs without sacrificing quality?
3. Be Honest with Your Customers – If you need to raise prices, consider being upfront about why. Many customers will understand that costs are going up and appreciate your transparency.
4. Stay Informed & Advocate for Your Business – Keeping up with policy changes and connecting with others in your industry can help you stay ahead of challenges. Consider joining small business groups or industry associations that advocate for freelancers and small business owners.

There’s no sugarcoating it—these tariffs are making things harder for freelancers and small business owners. But as always, small businesses are incredibly resilient. By staying flexible, exploring new options, making smart financial decisions, and utilizing the free resources that we offer our members you can navigate these changes and keep your business moving forward.