Industry leaders warned that tariffs imposed by President Donald Trump have driven up prices for a wide range of popular holiday goods and forced a huge number of small businesses out of the market.
On Saturday, designated for small businesses, some business owners hope that strong holiday sales will help mitigate the effects of a difficult year, but many do not expect so.
“My husband and I invested a large part of our retirement savings in this project, and now I have no hope of retirement,” said Joanne Cartliglia, owner of Queen’s Treasures gaming company in Ticonderoga, New York, during a press conference organized this week by the We Pay the Tariffs alliance of small businesses, according to The Guardian.
Cartelliglia, 64, added: I honestly feel the government is pushing me out of the market.
Lawsuits, opposition from large corporations, and pleas for help from small importers have failed to persuade the Trump administration to reconsider its hardline trade strategy toward imports, which the US president says will generate trillions of dollars for the federal treasury.
Trump claimed that opponents of the tariffs serve hostile foreign interests.
Small businesses, especially in the retail sector, rely heavily on the holiday sales season, but they face increasing challenges due to rising costs, supply chain disruptions, logistical problems, and uncertainty caused by tariffs.
The tariffs have particularly affected some small businesses, as these typically have smaller profit margins, making them less able to afford costs or obtain exemptions compared to larger companies.
Jared Hendrix has run Village Lighting Co., a holiday lighting and decoration company in West Valley City, Utah, for over 20 years. He estimates that the company's customs duties have cost it approximately $1 million so far this year.
Hendrix said: “At this stage, we have moved from operating for profits to operating for tariffs. We are only in the market to pay off tariff debt.”
Some business owners predicted that the problem would worsen in the future.
The struggle for survival
Hendrix added: “Any price increases you see this year in the holiday industry, whether on Christmas trees, lighting or other decorations, will be small compared to next year if no tariff relief is granted for the 2026 season.”
He continued: “American industry has never produced Christmas products, so it is not its responsibility to take away any jobs. The supply chain for these products is extremely complex, and building the infrastructure to move production here would take decades and cost billions of dollars. Even if it did, there wouldn’t be enough manpower to support this production.”
Boyd Stevenson, owner of Game Kastle College Park in Maryland, said his company's costs have risen sharply due to the tariffs. He added, Most of the manufacturers and publishers we deal with can't absorb the costs or pass on the price increases to customers, so they're under a lot of pressure. The number of game studios and games I've seen go bankrupt this year is staggering.
Stevenson noted, Even about a month ago, I would have said, 'Most of the federal workforce is also unemployed, so we're gearing up for a terrifying holiday season.' But we're still scared, even after the shutdown is over.
A survey of 1,048 small businesses conducted by Small Business for America's Future showed that 71% of small business owners expect tariffs to negatively impact consumer spending during the holiday season, while 44% believe the impact will be very negative.
The survey indicated that about 44% of small businesses raised their product prices due to tariffs, while 74% expressed concern about their businesses' ability to survive over the next 12 months.
White House spokesman Khush Desai said, “The administration consistently emphasizes that the costs of tariffs will ultimately be borne by foreign exporters who rely on access to the U.S. economy, the world’s largest and best consumer market. While tariffs secure new trade deals and trillions of dollars in investment to manufacture and employ workers in America, the administration is simultaneously implementing a pro-growth program that includes tax cuts, deregulation, and energy savings to enable businesses large and small to thrive, as they did during President Trump’s first term.”
