Trump Tariffs Hurt Black-Owned Businesses

Running a small business is never simple, but the landscape has become particularly challenging for many entrepreneurs since President Trump first implemented tariffs last April. Despite the Supreme Court striking down his broad tariffs in February, ruling he lacked the authority, the president swiftly reinstated global 10% tariffs. This unpredictable trade policy is creating a new crisis, disproportionately affecting Black-owned small businesses.

Tariffs Exacerbate Existing Challenges for Black Entrepreneurs

Tariffs have already proven devastating for businesses of all sizes, leading to increased costs and squeezed profit margins, or forcing price hikes for consumers. The unpredictable nature of current trade policy is especially difficult for small businesses, where margins are often already thin. Experts predict this situation will continue to harm Black-owned businesses more severely.

This is largely due to systemic underinvestment in Black entrepreneurs, which creates barriers at every stage of business growth—from securing startup credit to hiring staff and increasing revenue, as noted by Brookings. When additional costs like tariffs are introduced, they can destabilize an already delicate financial balance.

Beauty Industry Feels the Squeeze

The financial pressure on Black-owned businesses is particularly evident in the beauty sector, affecting both products and services. Diann Valentine, founder of Slayyy Hair, received a staggering $300,000 bill in May 2025 to import 26,000 units of braiding hair—her business’s primary product—from a port. This hefty cost was due to tariffs imposed on China at a rate of 145% at the time.

“To lose that kind of money at this stage has been devastating,” Valentine told Reuters. By the summer, the impact was also felt by salons. Dajiah Blackshear-Calloway, who owns a salon in Georgia, noticed a decline in client visits, as reported by Reuters. “We’re being impacted at every level. Packs of hair imported from Vietnam and facing new tariffs cost $100 more; glue from China almost doubled.”

Difficult Choices for Business Owners

Blackshear-Calloway explained the difficult position she’s in: “I’m either having to eat that cost or pass that expense along to my clients, which affects their budgets and their pockets as well,” she told the outlet. Facing a tariff bill can feel like a severe blow, and making business adjustments or raising prices can be maddening, potentially driving away already squeezed customers.

The current climate of uncertainty and rising costs makes it challenging for Black-owned small businesses to thrive. The only certainty seems to be the ongoing unpredictability, leaving these businesses at significant risk.