### Tariffs Turmoil: Small Businesses Struggle Amid Trump's Fluctuating Policies

In a week marked by further complications, small businesses have found themselves in an increasingly bewildering landscape due to President Donald Trump's unpredictable tariff policies. The upheaval continued as a U.S. court ruled on Wednesday that Trump overreached in implementing many of the import taxes, only for an appeals court to halt that decision the next day. This ongoing confusion is making it hard for small businesses to plan effectively, forcing some to rethink their strategies or even delay product launches.

For months, small businesses have tried to navigate the shifting terrain of Trump's tariffs. Broad levies were introduced globally on April 2, followed by frequent alterations. In early April, Trump paused reciprocal tariffs for 90 days, sparing all but China. Later, he significantly increased tariffs on Chinese imports to 145% but exempted certain electronics like smartphones. By May, reciprocal tariffs between the U.S. and China were rolled back temporarily, while threats of new tariffs against European imports loomed until July 9.

The uncertainty has already taken its toll. Julie Robbins, CEO of EarthQuaker Devices, a guitar pedal manufacturer in Ohio, fears that continued instability could lead to a "mass extinction of small businesses." The rapid fluctuations in tariff policy, often announced via the White House or social media, have created a whiplash effect that's particularly severe for small enterprises with limited resources.

Big names like Gap feel the strain, but for many smaller companies, the impact is crippling. The National Federation of Independent Business's Small Business Optimism Index fell by 1.6 points in April, registering below the 51-year average for the second month straight. Bill Dunkelberg, the organization's chief economist, cited uncertainty as a major barrier.

Some business owners are grappling with hard choices. EveAnna Manley of Manley Labs, which produces high-end electronics for recording studios, had to slash employee hours by 25%. The reciprocal tariffs from China have hit her business hard, reducing sales by over 19% and pausing product development.

Meanwhile, some firms are trying to adapt. According to Tala Akhavan, COO of Pietra, the best approach for small businesses is to remain flexible and diversify their supply chains. Intuition Robotics, which makes a home companion robot for older adults, is already following this advice, planning production strategies several months ahead and considering geographical diversification.

However, not all businesses can pivot so easily. Sarah O'Leary, CEO of Willow, a maker of wearable breast pumps, explains that moving manufacturing is not an option for her medical device company. High costs forced Willow to halt the export of one postpartum recovery product from China. Although the recent court ruling offered some hope, O'Leary noted that significant uncertainty remains, making survival difficult for small enterprises like hers.

As these small businesses navigate the turbulent waters of fluctuating tariff policies, their ability to adapt could be the key to enduring this phase of economic unpredictability.