A turbulent week in U.S. trade policy has left small businesses scrambling yet again, as conflicting court rulings and erratic tariff decisions from President Donald Trump deepen the uncertainty that’s plagued them for months.
On Wednesday, a federal court ruled that Trump had exceeded his authority in imposing sweeping import tariffs. But within a day, an appeals court temporarily halted that decision, plunging business owners into more confusion.
The unstable policy environment has made it nearly impossible for small companies to plan ahead. Some are now weighing drastic moves—reshaping supply chains, delaying new products, slashing staff hours, or even shuttering operations.
“My fear is, if this continues, there’s going to be like the mass extinction of small businesses,” said Julie Robbins, CEO of EarthQuaker Devices, a boutique guitar pedal manufacturer based in Ohio.
Since Trump first announced blanket tariffs on April 2, his stance has shifted repeatedly. From pausing duties on most countries except China, to exempting certain electronics and threatening new levies on European imports, the administration’s approach has changed with little warning—sometimes via tweets or late-night statements.
These shifts have struck hardest at small and mid-sized firms, which lack the financial cushion or global networks of large corporations. The National Federation of Independent Business reported a drop in its Small Business Optimism Index in April, falling below its long-term average for a second month. The group’s chief economist called uncertainty a key obstacle.
The toll is visible in day-to-day operations. Manley Labs, a California company making professional audio gear, cut worker hours by 25 percent. Founder EveAnna Manley said Chinese reciprocal tariffs hit her firm hard, drying up sales and halting product development. “It’s just a freaking mess right now,” she said. “And I’m so angry that my own government has done this to me.”
Other firms are seeking ways to adapt. Intuition Robotics, which makes AI-driven home robots for seniors, is exploring production options outside China. Chief Strategy Officer Assaf Gad said the volatility has actually pushed the company to expand globally and rethink its sourcing strategy.
But for some, pivoting isn’t feasible. Sarah O’Leary, CEO of Willow, which manufactures medical devices like wearable breast pumps, said shifting production isn’t an option due to regulatory constraints. Her company once had to pause exports of a postpartum product due to skyrocketing costs.
Wednesday’s court ruling gave her a glimmer of hope, but she remains cautious. “There’s still so much uncertainty,” she said. “The chaos will persist.”
Related Readings:
