Why Tariffs Hit Small Businesses Especially Hard

[mendez]

Beyond tariffs themselves, companies are struggling with collateral requirements like customs bonds, which tie up cash without generating returns. Small businesses, such as consumer goods firms, report having hundreds of thousands of dollars locked away simply to guarantee tariff payments—money they can’t use to grow or even earn interest on.

This uncertainty is weighing on confidence. While views on the economy remain mixed, more than half of surveyed supply chain professionals fear a recession, many expecting it as soon as the second quarter. According to ASCM, the combination of rising costs, frozen capital, and policy uncertainty is leaving companies hesitant to hire or invest, deepening what some economists already call a hiring recession.

[johnblockbuster]

the customs bond thing feels like a hidden tax nobody talks about, just dead money sitting there