(The Center Square) – A new survey shows some small businesses in Illinois are on edge about international tariffs and the effects they could have on their bottom lines.
President Donald Trump launched tariffs on Canada and Mexico, only to postpone them for a month, but across-the-board Chinese tariffs remain.
The small business networking platform Alignable survey shows nearly one in three businesses nationwide anticipate revenue losses, but researcher Chuck Casto said the percentage is higher in Illinois.
“Of the states that we looked closely at, Illinois ranked as the third highest state of small businesses who are concerned about what the tariffs could do to their revenues where we had 35% from Illinois telling us that,” said Casto.
Only Minnesota and Washington state were higher.
In contrast, 18% of small businesses nationally foresee a boost in sales, and just half of them (9%) predict substantial gains. Meanwhile, 40% of respondents believe tariffs will have no impact on their businesses, while 12% remain uncertain.
Casto said small business owners fear increased costs and supply chain disruptions could force Main Street businesses to hike prices, reduce staff, or shut down altogether.
“That is one concern for sure that they would have to raise prices and that could scare away some consumers,” said Casto.
Manufacturers and business consultants were the only industries where more small business owners predicted sales increases rather than losses.
“Small businesses are already navigating a financial minefield – rising costs, inflation, and economic uncertainty,” said Alignable CEO Eric Groves. “Now, the threat of new tariffs could be the breaking point for many.”
Another survey of small businesses shows optimism, but also uncertainty is on the rise.
The National Federation of Independent Businesses Small Business Optimism Index fell in January, while the Uncertainty Index rose 14 points to 100, the third highest recorded reading.
“Small business owners remain on edge about the upcoming expiration of the federal Small Business Tax Deduction and the lingering inflation and workforce pressures,” said NFIB Illinois State Director Noah Finley.
