President Trump's tariffs were promised as a lifeline for American manufacturing — but a growing body of evidence suggests they're doing the opposite for many small and midsize U.S. businesses.
An Associated Press analysis published this week profiles manufacturers across the country who have seen costs spike, payrolls shrink, and profit margins evaporate since tariffs on imported goods took effect. One Arkansas manufacturer, who voted for Trump, watched his workforce drop from 205 to 140 employees and ran his company at a loss in 2025. To survive, he raised prices 8-10% — costs that ultimately flow to buyers.
For East County businesses that rely on imported materials — whether construction supplies, equipment parts, electronics, or consumer goods — the dynamic is familiar. San Diego County's business community has been navigating rising input costs even as consumer demand shows signs of softening under the weight of inflation and record gas prices.
The broader picture grew more complicated after the Supreme Court ruled in February that the emergency tariff structure was illegal, forcing the administration to craft replacement tariffs. The ongoing uncertainty has made supply chain planning difficult for businesses of all sizes.
Chambers of commerce across San Diego County have flagged tariff-related cost concerns as a top issue for members this year. Santee and East County entrepreneurs — many of whom operate in retail, construction, and service trades — say they're caught between absorbing higher input costs or passing them to customers who are already stretched thin by record fuel prices.