The Northern Michigan Chamber Alliance released findings from its regional survey on tariff and trade policy, revealing significant concern from small- and medium-sized businesses over the economic impact of rising tariffs and global trade instability.
The survey, which collected 214 responses from businesses across sectors such as retail, manufacturing, construction, and professional services, found that a majority of businesses are experiencing a negative impact on their operations due to tariffs.
Many businesses described a sense of uncertainty, with shifting trade policies making it difficult to plan ahead. Several noted that even those sourcing domestic products are feeling the ripple effects of broader price inflation.
“Fortunately, many of our components are sourced domestically. Despite this, since October of last year, tariffs as a percentage of our cost of goods sold have doubled and could rise further. Promethient, like most small manufacturers, does not have the means to rapidly vertically integrate and create our own domestic supply chains. For some of our components, it will take years to establish domestic sources,” said Bill Myers, a Traverse City-based manufacturer. “Due to the extraordinary uncertainty associated with how tariffs are being deployed, investment in building new onshore production facilities will be impractical. While we celebrate manufacturing in the USA, onshoring our Country’s supply chain does not magically happen overnight.”
According to the results:
- 52% of businesses expect a significant negative impact
- 44% of businesses anticipate a significant drop in revenue over the next 12 months
- 14% expect employment reductions, while only 1.4% foresee growth
Respondents pointed to cost increases in materials, packaging, and imported goods as key challenges. Respondents noted that even with efforts to source domestically, certain items are only available through global suppliers.
“Handmade cigars use as many as seven different tobacco leaves sourced from tropical climates with very specific needs for precipitation, altitude, solar exposure, and soil content. While some tobacco is sourced from the United States, this unique industry relies on variety created by the careful selection of tobaccos from all over the world,” said Andy Hyde, Nolan’s Cigar Bar. “Tariffs are ultimately paid for by the consumer.”
“As a small business focused on architecture and structural engineering, I have great concerns with tariffs being put in place and how they will affect the cost of building materials. Our industry is already feeling the pressure of housing costs and the additional tariffs will make it worse. I am fearful that our services will start to decline as the costs start to prohibit new residential starts & remodel work,” said Stephanie Baldwin, Edgewater Design.
One clear concern is the potential increase in the cost of goods- especially imported medical supplies and equipment. These cost increases could add pressure to already tight operating margins across the sector” said Matthew Bondy, Bondy Physical Therapy. “More broadly, when tariff policy shifts are introduced alongside other federal and administrative changes currently impacting healthcare, we begin to see a convergence of risks. This combination could pose significant challenges not only to healthcare providers but also to the patients and communities we serve. The uncertainty and cumulative burden of these policy shifts put us in potentially dangerous territory, with real implications for access, affordability, and quality of care.”
The Northern Michigan Chamber Alliance is urging policymakers to prioritize economic stability for small businesses in trade and tariff decisions. It is important that our federal and state lawmakers understand the significant negative impact our local business community is experiencing, and we urge them to amplify this message to the federal administration.
