Small businesses across the U.S. are sounding alarms over tariff policies they say could push them toward bankruptcy, while retail giant Walmart warns consumers to brace for price increases amid ongoing trade pressures.
Small Businesses Face Liquidity Crisis
At a U.S. Senate hearing this week, EarthQuaker Devices CEO Julie Robbins revealed that 30-40% of her company's revenue comes from exports to markets like Europe and Japan, which have been severely impacted by tariffs. "We’re already caught in a liquidity crisis," she said, attributing plummeting sales to anti-American sentiment and financial volatility linked to shifting U.S. trade policies. Robbins urged lawmakers to repeal tariffs to "alleviate operational pressures."
Walmart’s Pricing Dilemma
Walmart reported mixed Q1 earnings, narrowly missing revenue expectations as CEO Doug McMillon cautioned that tariffs—even at reduced levels—exceed what retailers or suppliers can absorb. "Higher tariffs will result in higher prices," McMillon stated, noting pressure on items like electronics and imported produce. CFO John David Rainey warned price hikes could become noticeable by June, calling the cost increases "unprecedented."
Broader Economic Ripples
Analysts suggest Walmart’s stance may embolden other retailers to raise prices, further straining household budgets. GlobalData’s Neil Saunders noted, "If a low-price player like Walmart is putting up prices, others may follow." Meanwhile, small businesses like EarthQuaker Devices face existential threats, highlighting the uneven impact of trade policies on different sectors.
