To Raise Prices or Not to Raise Prices: Tariff Tips for Small Businesses

Small Businesses Caught in the Middle

Tariffs continue to squeeze small and midsize businesses across the U.S., forcing owners to make tough decisions: absorb rising costs or raise prices and risk losing loyal customers. According to a recent Bredin survey, 74% of midsize and 72% of small businesses now say tariffs are increasing their costs — a sharp rise since early spring.

A Balancing Act Between Cost and Customer Loyalty

From Brooklyn terrarium shops to New York wholesalers, many companies are delaying price hikes while bracing for long-term impacts. Some are stockpiling inventory, diversifying suppliers, or trimming expenses behind the scenes to keep prices stable. Others are choosing transparency, communicating directly with customers about the reasons behind higher costs and emphasizing quality and service to maintain trust.

The Bigger Picture

Beyond individual businesses, tariffs are reshaping economic confidence. Owners are postponing expansions, reducing hiring, and rethinking growth strategies. Yet, for some, uncertainty has become a catalyst for innovation — finding new ways to stay competitive in a volatile trade environment.

As small businesses weigh whether to pass costs along or absorb them, their decisions will influence not only profit margins but also the broader economy — from what consumers pay to how confident they feel about the future.