The Hidden Cost of Trade Wars: Small Businesses Pay the Price

SAN DIEGO, April 3, 2025 /PRNewswire/ -- Flexible Assembly Systems Inc today announced that the new US tariffs are squeezing small businesses. Small business owners across the nation are expressing growing concern over the detrimental effects of current tariffs, which are leading to increased costs, supply chain disruptions, and a significant strain on their ability to compete.

"These tariffs are creating a ripple effect that's hitting small businesses particularly hard," says Eddie Silverberg, co-founder of Flexible Assembly Systems Inc in San Diego California. "We're seeing increased prices on essential materials, which forces us to either absorb the cost or pass it on to our customers, both of which hurt our bottom line."

Key Impacts:

• Increased Costs:
• Tariffs act as taxes on imported goods, driving up the cost of raw materials and finished products.
• This results in reduced profit margins for small businesses, many of which operate on tight budgets.
• Supply Chain Disruptions:
• Tariffs can disrupt established supply chains, leading to delays and uncertainty in obtaining necessary goods.
• Small businesses often lack the resources to quickly adapt to these disruptions.
• Competitive Disadvantages:
• Larger corporations often have greater financial resources to absorb increased costs, putting small businesses at a competitive disadvantage.
• This can lead to small businesses losing market share.
• Uncertainty and Planning Challenges:
• The volatile nature of tariff policies creates uncertainty, making it difficult for small businesses to plan for the future.
• This uncertainty can stifle investment and growth.

"For many small businesses, these tariffs are not just a financial burden, but an existential threat," says Eddie. "We urge policymakers to consider the devastating impact these policies are having on small businesses which are the backbone of our economy."

Small business advocacy groups are calling for:

• A review of current tariff policies.
• Measures to mitigate the impact of tariffs on small businesses.
• Greater stability and predictability in trade policies.

About Flexible Assembly Systems
Flexible Assembly Systems is an industrial supply distribution company with a focus on offering industrial tools and equipment to manufacturers in the Automotive, Aerospace, Defense, Electronics, and medical device segments. For more information, visit www.FlexibleAssembly.com.

SOURCE Flexible Assembly Systems Inc