As trade policy headlines once again make national news, we checked in with local businesses to understand how tariffs are impacting operations, pricing, and financial outlooks across Greater Richmond. The results? A mixed bag—but one with clear signs of strain for many small business owners.
Cost Pressures Are Real and Rising
In our latest pulse survey, nearly half of respondents (44.4%) reported significant cost increases due to tariffs. While just over a quarter (27.8%) say they’ve seen no impact yet, another 22.2% aren’t sure—suggesting the full effects may not have surfaced.
The most impacted businesses? Those with supply chains connected to China. Over half (53.8%) of affected respondents source more than 50% of their materials or components through Chinese suppliers—even when those aren’t final goods. That exposure has left many scrambling to adjust.
How Are Businesses Responding?
Among those impacted, the top strategies are clear:
- 61.5% are delaying investments or purchases
- 61.5% have raised prices
- 46.2% are changing suppliers or sourcing methods
Some are also rethinking their marketing, adjusting customer communications, or—in a few cases—reducing staff hours.
One business shared:
“Tariffs are raising our costs on all fronts—from merchandise, supplies, travel, and more.”
Another noted:
“We’re still determining which items are impacted and looking for alternatives to save money. At the same time, many of our clients have been heavily affected. As a result, our revenue is down, and we’ve had to reduce our staff.”
Uncertainty Weighs on Planning
When asked about their financial stability over the next 6–12 months:
- 27.8% are very concerned
- 27.8% are moderately concerned
- 27.8% are slightly concerned
While the sentiment isn’t universally negative, over 80% expressed some level of concern about how tariffs could affect cash flow, inventory, and pricing in the months ahead.
Tariffs and the Domino Effect
Even for businesses not directly importing goods, the ripple effect is clear. One respondent shared:
“Tariffs don’t affect me directly, but I’m nervous that if my clients are impacted, their marketing budgets or spending might shrink.”
Another added:
“Buyers are turning to alternatives like Amazon, Temu, and Shein—places where they may not feel or see the effects of tariffs. That puts small businesses at a disadvantage.”
Key Takeaways
- Tariff-related cost increases are widespread and accelerating.
- Many small businesses are actively changing sourcing strategies or passing costs on to customers.
- A lack of predictability is making it harder to plan for the rest of 2025.
- The ripple effect reaches far beyond importers—into service providers, consultants, and B2B relationships.
At InUnison, we’re continuing to track these developments to ensure the voice of local business is heard in policy discussions. If your business is experiencing challenges due to tariffs or global sourcing disruptions, we want to hear from you. Your story helps shape the broader narrative we share with policymakers, economic development partners, and the media.
📣 Have insights to share? Email us or post in the comments below.
