'It's hurting us': Small businesses feel the pinch of tariffs

Legrand Lindor is the owner of LMI Textiles, a small Boston-based business that primarily distributes medical supplies. His company supplies harm reduction items, personal protective equipment as well as janitorial supplies to private and public health systems and nonprofits nationwide.

Lindor knew tariffs were coming, but when a $5,000 import tax bill came on aluminum components from a French supplier, he was shocked.

"It just made my stomach sink because, you know, having to meet payroll, pay vendors, contractors, things of that nature," said Lindor.

He's one of many small businesses feeling the sting of tariffs.

"It's hurting us, but we're trying to figure it out," he said.

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Lindor is one of four small business owners that met virtually with Senators Ed Markey of Massachusetts and Ron Wyden of Oregon earlier this month to discuss tariff concerns.

The virtual meet was hosted by Small Business For America's Future, a national coalition of small business leaders, bringing attention to the impact tariffs have on small businesses.

A survey from the group found that more than 70% of small business owners can't plan effectively with the "whiplash effect" of trade policies.

While small businesses can be more nimble than larger ones, they often lack the resources to absorb sudden financial hits.

Lindor's supply business is diversified for that reason. While the majority of his business focuses on medical supplies, he also supplies hair to cosmetic consumers and manufactures corporate promotional products.

He uses U.S.-based suppliers mixed with ones in Europe, Haiti and Central and South Asia. Lindor said in addition to the tariffs on his imports, prices from his U.S. suppliers are going up too.

But, Lindor said his team is not new to managing chaos. During the Covid-19 pandemic LMI Textiles was uniquely situated to fill supply gaps and work with other small suppliers.

"People got to know each other. We met virtually and we continue to meet virtually and do large deals with each other," Lindor said.

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They continue to be allies sharing resources to stay afloat — whether that's bundling shipments to keep unit prices down or swapping inventory to meet needs.

Lindor supplies harm reduction programs to more than 20 public health departments across the country. His $5,000 big tariff bill is tied to his work in that, with a contract that caps prices for three years while his costs go up.

"For a small business, every little detail and amount matters," said Shavon Smith, a business attorney and founder of The SJS Law Firm that represents small and medium sized businesses.

"If you are a large business, you can maybe close down one or two stores to affect your bottom line," she added. "You can look for new sources of products. You could maybe get rid of a product line or cut back on how much you do of something."

Smith is also a small business owner based in Washington D.C.

"Every time I look up some service that I need to run my business has increased in price or some product, whatever it is that I use in order to make our little engine run," Smith said. "I'm certainly feeling it as a business owner and I'm feeling it a consumer as well."

To help absorb the cost, Lindor says he hasn't paid himself, is looking at other suppliers and routes and delaying plans to open a warehouse.

"It just it makes it so difficult, obviously, in terms of making decisions and figuring out what to do," he said.