Experts are weighing in on the impact of tariffs on Michigan small businesses.
President Donald Trump announced this week he’s going forward with tariffs on Mexico and Canada, implementing a 25% tax on imports. Eastern Michigan Unuiversity professor Mark S. Lee says many Michigan small businesses will be forced to increase prices, but which will be the most impacted?
“Primarily the service industry will be hit significantly, the automotive industry will be hit significantly,” Lee said. “The bottom line is, the reason is the manufacturers are going to have to pass on the cost to somebody, and they’re going to pass on the cost to small businesses, which means again, the cost will increase, and ultimately, the small business may not, or the service industry may not eat that cost. And what that means is that they’re going to pass the cost on to the customers.”
China was also hit with a 20% tariff, but it quickly retaliated, slapping its own tariffs of up to 15% on imports of farm products, including chicken, pork, soy, and beef.
