Trump tariff impacts: Small Detroit businesses speak on growing concerns

Detroit small businesses being impacted by tariffs

A group of small business owners are speaking out over growing concerns about what is being called a crisis that is hurting the bottom line of many. Business owners gathered on Wednesday to express concerns over tariffs put on by the Trump Administration.

DETROIT (FOX 2) - The impact of tariffs is causing frustration for Metro Detroit businesses both large and small. 

Big picture view:

On Wednesday, a group of small business owners gathered and spoke about their growing concerns about the Trump Administration's tariffs that they say are hurting the bottom line of many.

"Not sure that I can hire seasonal help because I’m not totally confident because of this tariff issue, I’m going to have the stability and the business environment that I need to feel confident going into the holidays," said Peacock Room Owner Rachel Lutz. 

Local perspective:

Jessica Kwalli is new to the beauty industry, and she said tariffs are raising her prices. 

"We got hit pretty hard when it comes to Tariffs," said Kwalli. "The majority of the hair extensions come from China. I have customers that were used to paying $100-$150 and now that has doubled."

Many companies have tried to delay price increases, but reality has set in for some. 

"A lot of this have been delayed because a lot of businesses have stocked up on inventory ahead of time so they’ve been selling to the customers out of the inventory that they have already built up," said Associate Professor of Management Michael Greiner.

It is a squeeze that is being felt by large corporations also. 

"General Motors showed that they had a huge hit to profits, like $1 billion as a result of tariffs. We also see Stellantis and big trouble as a result of the tariffs. And we also saw an announcement from the US steelmakers that they’re going to be increasing their prices," said Greiner.

Why you should care:

Business analysts are now sounding the alarm to consumers and businesses, from mom-and-pop stores to global corporations. 

"That old joke that used to exist, what’s good for GM is good for America, is certainly true in Michigan and what’s bad for GM is bad for Michigan and that’s what we’re seeing now," said Greiner.

This could mean small businesses may fade away.