Tariffs Hit Black Businesses and Families Hardest

Sweeping tariffs took effect in August, adding new costs to goods from more than 60 countries and the European Union. Rates now range from 10% to more than 100%, with imports from countries like Japan, South Korea, and Vietnam facing steep increases.

While the administration has claimed tariffs will bring jobs back, Black households and small businesses are among the hardest hit. Everyday essentials—clothing, electronics, cars, and groceries—are becoming more expensive, forcing many families to cut back. Economists warn that job losses could climb into the millions if tariffs remain in place, especially in retail and manufacturing sectors where Black workers are concentrated.

Small businesses like bookstores, coffee shops, and urban farms face rising costs as imported goods, raw materials, and equipment become more expensive. Many Black-owned shops, already navigating lower disposable incomes among their customers, will struggle to stay open. With only 3% of U.S. businesses Black-owned, these pressures threaten to erase vital community anchors.

Tariffs also raise the price of food and farming equipment, worsening food insecurity in low-income neighborhoods and communities of color. Rising costs ripple into housing, utilities, and technology, further widening racial wealth and opportunity gaps.

Black entrepreneurs and workers, already vulnerable during past recessions, now face renewed risks as tariffs push the economy toward slower growth and higher unemployment. The financial strain is compounded by cuts to diversity initiatives and shrinking support for minority-owned businesses, leaving many families and communities exposed.