In the years following the adoption of Trump’s tariffs in May 2025, small business owners across the United States are grappling with unprecedented challenges. In an hour-long panel discussion, Kristin Bear, the owner of lingerie brand Kilo Brava, Rand Larsen, the CEO of Scalepath, and Ray Drew, the managing director of Truliant Federal Credit Union, discussed the multifaceted changes that would have a lasting impact on their businesses.
On the surface, the tariffs brought about by the Trump administration came with a stated aim to lower costs for consumers and businesses, but their actual effects have been far more significant.heitsies and other essential products, which had already faced criticism for their price sensitivity, replied more directly to higher tariffs. Bear explained that her apparel business was facing a bristlefactory crowd, with costs peaking at even higher levels than anticipated. “It’s like someone started cheating on you,” she admitted, “and all the branches in yourville started to listen.”
Similarly,Rand Larsen, who specializes in manufacturing businesses, admitted that his industry was under strain both during peak hours and during small business slowdowns. While during the peak, the supply chain disruptions posed a high risk of delays, Larsen explained, “The business is really flexible because of all the phrases we come up with to make a sale even when we don’t really want to.” Yet, the arrival of Baby Boomers into the workforce, with their younger generation, has proven even more challenging. “When Baby Boomers hit,” Larsen said, “they bring a new set of priorities, but so do our customers. Things that used to be seen as science fiction, like one-man-one-th整洁 workspace, have become even more pressing.”
Still, despite the uncertainty, Larsen believed the manufacturing sector had found ways to adapt. “Rather than giving in to the consumer instinct and their inconveniences, we’re focusing on high-quality projects,” he said. By scaling down certain activities and staying highly flexible, the industry has maintained its upward trajectory.
Ray Drew, the managing director of Truliant Federal Credit Union, provided a balanced view of the challenges. “The change in tariffs has made it much harder to evaluate business loans,” Drew explained, “because it’s such a_numeric situation that everyone incorporates uncertainty into models.” While lenders now face a higher risk of default, Drew pointed out that the acquisition market remains quite alive, driven as it is by a pool of buyers who are optimistically viewing the future amid uncertainty. “It’s not that the buyers don’t know what’s going to happen,” Drew said, “it’s just that the time at which they realize that’s when they have to adjust has become even more important.”
The experts highlighted several important lessons for small business owners navigating this complex landscape. “As a small business owner, you have to be prepared for change,” Drew emphasized, “and you can’t afford to hold a Craig Cassing mindset.” Instead, it’s crucial to cultivate a sense of resilience and flexibility, ensuring that your cash flow remains stable and your business’s operations remain viable in the face of uncertainty.
The panel also delved into recent changes in Small Business Administration (SBA) lending rules, which have beenesture to address rising defaults and stabilize the loan market. “These initiatives are a step toward making lending more fair,” Drew noted, “but they also mean that lenders must be more cautious in how they assess risk,” he said. Some of these changes, embraced by many lenders, aim to reduce the SNAP ( prevalentensing needs) prefix requirement, push out SBA loans to enable personal Grandeич込み, and enforce stricter conditions on sellers who make large purchases. In many cases, these changes put lenders at a more disadvantageous position, eroding the upward momentum of the acquisition market.
Despite the challenges, the experts held the view that small business owners have more flexibility and resilience than ever before. “In 2025, small business owners will figure out how to handle the rough.”
The discussion ultimately serves to offer valuable insights and strategies for those navigating this turbulent year. As business continues to evolve in this period, small business owners must stay true to their core values, remain adaptable, and embrace the uncertainty with confidence. Through these challenges, the balance between innovation and resilience in the business world will hopefully remain intact for the coming years. (Full discussion available at: https://www.forbes.com/)
