Navigating the Tariff Maze: Unraveling the Complexities for Businesses of All Sizes

As former President Donald Trump's plan for universal tariffs looms, a growing question emerges: who will be able to navigate the intricate web of exceptions and exemptions? While Trump suggests that some companies may find relief, the fate of smaller businesses remains uncertain, raising concerns about the potential impact on the broader economic landscape.

Unraveling the Tariff Conundrum: Navigating the Complexities for Businesses

Exceptions and Exemptions: A Tale of Two Businesses

The Trump administration's approach to tariffs has been marked by a seemingly selective process, with larger corporations like Apple seemingly able to secure exceptions, while smaller importers struggle to make their voices heard. Tina Wells, a small-business owner, expressed her concerns, stating, "As a small-business owner, I'm thinking, 'Am I even being considered?' I am not the same as a large company like Apple."Wells' experience with past tariffs has been far from smooth, as she recounts having to "lose [her] profit and eat the cost of the item and had to ultimately destroy the product" due to duties she couldn't avoid. The prospect of deeper tariffs in 2025 only adds to the uncertainty and challenges facing small businesses.

The Political Realities of Tariff Exceptions

Even experts are unsure of what to expect when it comes to the implementation of tariff exceptions. Wendy Edelberg, director of the Hamilton Project at the Brookings Institution, notes that recent history suggests that tariff exceptions tend to happen "not necessarily based on the merits [but] likely more based on the political realities of your situation."Trump has claimed that he would grant exceptions based on merit, but the question remains whether smaller companies without political access would have the same ability to make their case. The representative for the former president reiterated claims about the economic impact of tariffs in the past, but did not directly address the concerns about exceptions and the impact on smaller businesses.

The Transactional Nature of a Trump Presidency

The tariff exception question has become a focal point in the 2024 campaign, with the Harris campaign highlighting the potential economic implications of Trump's policies. Billionaire entrepreneur and "Shark Tank" star Mark Cuban has even attempted to tie Trump's policies to higher prices during the holiday season, dubbing the former president "the Grinch."Edelberg's research has shown that businesses devoted considerable resources in 2017 and 2018 to try to skirt Trump's duties, with politically favored importers often winning relief and the process presenting a challenge for smaller companies. The signals from Trump suggest a "transactional nature of what I think a Trump presidency would be like," Edelberg said, noting that "exceptions are just part of what will be a really exhausting late fall and early winter for all businesses."

The Uncertainty of the Tariff Landscape

Businesses, particularly importers, must plan months in advance, and the uncertainty surrounding the future tariff landscape adds to the complexity. Tina Wells, the small-business owner, noted that plans are already being finalized for deliveries in late January or early February, when a new president will be in office, highlighting the need for clarity and stability in the trade policy.The potential for new tariffs and the unpredictable nature of the exceptions process could force businesses to devote significant time and resources to navigating the ever-changing trade landscape, potentially distracting them from their core operations and strategic priorities.As the 2024 campaign season unfolds, the question of tariff exceptions and their impact on businesses of all sizes will undoubtedly remain a central point of discussion, with the outcome potentially shaping the economic fortunes of companies across the country.