Tariffs Force Small Businesses to Raise Prices More Frequently

American small businesses are facing rising costs as new tariffs force suppliers to raise prices, sometimes by as much as 30 percent. Many companies stocked up on pre-tariff inventory, but as those supplies run out, businesses must adjust prices more frequently.

Mike Weiss, owner of Big Shark Bicycle Company in St. Louis, said, “We’re seeing an average 10 percent increase in retail prices.” He added that they are repricing daily instead of annually. A bike that sold for $730 before tariffs is now $800.

This is not an isolated case. The National Federation of Independent Business reported that 32 percent of small businesses plan to increase prices, the highest since March last year. A recent Census Bureau survey also found 34 percent of companies expect to raise prices within six months.

Access to funding remains a challenge for many. A PYMNTS Intelligence survey showed only 36 percent of SMBs had readily available cash, with 20 percent unsure if they can survive ongoing tariffs.

To cope, 37 percent of SMBs are highly interested in embedded lending options, looking beyond traditional banks for capital to keep their operations running or growing.

What Small Businesses Need Now

In a shifting tariff landscape, small businesses must adapt quickly to keep pace with cost changes. Access to flexible financing options like embedded lending can provide much-needed relief and help SMBs maintain stability amid uncertainty.

Payment Solutions with Kubera Payments

At Kubera Payments, we help businesses across North America move millions of dollars daily, whether in-store, online, or on mobile. Our team of payment experts is here to guide you through the complexities of payment processing, ensuring your transactions are secure, reliable, and PCI-compliant. We have strong relationships with a wide network of acquirers and can help you find the right front-end and technology solutions to work together.

Get expert advice on optimizing your payments.

Contact our team at sales@kuberapayments.com or 604-484-9278.

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