As the Trump administration moves forward with tariffs on imports from Canada, Mexico and China, local Utah businesses are bracing for potential impacts.
President Donald Trump has been clear about his plans to tackle trade policies since coming into office this year. In his inaugural address, he promised an immediate overhaul of the trade system through tariffs and taxes on foreign countries. On Feb. 1, 2025, President Trump signed an executive order enacting 25% tariffs on Canadian and Mexican imports, along with 10% on those from China. Following his initial action, foreign trade plans have gone back-and-forth as the presidential administration tries to reduce impacts to U.S. based production.
Regardless, the effects of these tariffs are making their way to Utah’s local economy, according to Erik Snowberg, Marriner S. Eccles Presidential Chair and Professor of the Quantitative Analysis of Markets and Organizations at the David Eccles School of Business. Not only can consumers expect to see raised prices on directly imported products, but Snowberg said added fees on international energy and raw materials could increase the cost of U.S. manufactured goods, as well.
He said the effects of these trade policies can hit local businesses extra hard.
“A sudden price spike for a small business can put them out of business. So, they’re probably the ones that are most at risk,” Snowberg said.
In a state that flaunts a highly business-friendly reputation, local retail and boutique shops in Utah are already working to mitigate or get ready for tariff-induced troubles.
Helen Wade is the owner and founder of The Stockist, a small-batched clothing and home goods store in the 9th & 9th neighborhood of Salt Lake City. Wade said the tariffs have already forced to reflect on her product supply. She said about 30% of their stock is U.S. made while 70% is sourced from around the globe, which is posing a challenge for profit margins.
“We received emails from several of our brands that are saying, due to the tariffs — it doesn’t sound like a lot, but — some pieces, they’re gonna have to raise [prices] by like, one dollar per unit,” she said. “Overall, if we’re putting in a $10,000 order, and then every unit on that order is another dollar. That increases our order. It makes me have to cut back on the ordering.”
She said shipping companies have sent bills for orders weeks after they arrive that cost almost as much as the original product invoice.
With less reserve capital, Snowberg said small businesses don’t have the same financial buffer as larger companies. At The Stockist, Wade has had to find ways to compensate for increased supply costs.
“We also have to pass that cost onto the consumer,” she said. “With the tariffs coming in, we can’t just eat that cost and be like, ‘oh, no big deal’, because then we won’t be able to pay our employees a fair and living wage.”
Another Salt Lake boutique, Hip & Humble, has faced similar challenges. Owner and CEO of the women’s lifestyle shop, Sheridan Mordue, said passing the cost burden onto customers puts local shops in a “precarious position.”
“We’re already fighting for every customer to come in our door,” she said. “You want your customers to come back. You want your customers to feel good about supporting you. You want your customers to be loyal to you. But when you’re always changing prices on them, I think it feels scary for us.”
Mordue said she’s also had to rethink every product line while placing orders for upcoming seasons. As a small business owner, she said navigating these economic uncertainties can feel like life or death.
“These are these hard times,” Mordue said. “I think the biggest lesson is when it feels unstable, just support your favorite shops. That’s what it’s all about, is like just sharing with everyone. There’s enough to go around, and let’s just make sure we’re doing our part.”
