By Amanda Richer for Runta News-Seattle, Washington.
The newly imposed tariffs, particularly the sweeping 10% duty on all imports, are poised to create significant economic and social challenges for the immigrant communities including Somalis, Africans, and Muslims in the US, especially those living in Washington State. These communities have revitalized urban areas with vibrant small businesses. However, these new tariffs threaten to disrupt their progress on multiple fronts.
For entrepreneurs, the tariffs are a direct threat to their livelihoods. As Dilawar Saeed, former Deputy Administrator of the U.S. Small Business Administration, pointed out, a staggering “97% of all importers in the United States are small businesses.” Many of these businesses, from shops selling imported goods to restaurants using ingredients from abroad, are operated by immigrants. The tariffs act as a hidden tax, increasing the cost of goods and materials they import to run their operations. As business owner Marcus Bowers explained, these increased costs will get passed on to consumers.
The financial burden on these small businesses is immense. They do not have the cash reserves or the flexibility of large corporations to navigate these abrupt policy changes. Unlike large businesses that can “get ahead of the tariffs by importing things more quickly,” small, family-owned stores are left vulnerable. This is especially true for immigrant entrepreneurs who may face additional barriers, such as language challenges, and are already operating on thin margins. The financial stress could, unfortunately, lead to a higher rate of business closures within the community.
The impact of these tariffs is not confined to businesses alone; it extends to the everyday lives of families. The tariffs on common consumer goods, like clothing, electronics, and food, will strain their budgets. It also has a considerable impact on those sending remittances to their families. An economic slowdown could impact the earning ability of people, affecting loved ones living overseas.
While the tariffs are often framed as a way to punish foreign governments, they also serve as a political tool. A tool that damages the ability of communities and small businesses to thrive. The tariffs on goods from African nations could jeopardize beneficial trade agreements like the African Growth and Opportunity Act (AGOA) and destabilize regions and trade across the world.
