Small businesses took on debt and raised prices to cope with tariffs

July 24, 2026 - 05:56

A new national survey reveals the heavy toll that ongoing tariffs are taking on small businesses across the United States. According to the data, 57% of respondents reported a decline in their business activity, with four out of five owners specifically pointing to tariffs as a major contributing factor. The findings paint a picture of a sector under significant financial strain, forcing owners to make difficult choices to stay afloat.

In Chicago, local businesses like yarn store Dropped Stitch, incense maker Genieco, and furniture seller Moderne Living were among those that participated in the survey. Their experiences reflect a broader trend of adaptation under pressure. Many small business owners have resorted to taking on new debt to cover rising operational costs, while others have been compelled to raise prices for their customers. These measures, while necessary for survival, risk alienating price-sensitive shoppers in an already uncertain economy.

The survey underscores a growing sense of unease among entrepreneurs who feel caught between shrinking margins and the need to maintain cash flow. Without significant policy changes or relief measures, the path forward for many small businesses remains fraught with challenges.