10/20/2025

Many Small Businesses are Being Crushed by the Tariffs

Some economists say it’s a warning for the economy

Viresh Varma can’t sleep. The CEO of AV Universal Corp., a small footwear company that sells through retailers like Macy's, Nordstrom and DSW, said he needed to take out a $250,000 loan to pay his tariff bill on a container of shoes he imported from India for the holiday shopping season.

Varma didn't have the cash on hand to pay the duties, which he said used to be around $7,500 for a similar-sized container before President Donald Trump's new tariffs. But without the financing, he wouldn’t have anything to sell during the holidays.

So, the 64-year-old said he was faced with a choice: Take on the line of credit— which came with onerous terms like weekly payments and a 32 percent interest rate — and raise prices to pay it back, or close the business he's spent the last nine years building. He decided to take out the loan.

Please select this link to read the complete article from CNBC.