Nearly a quarter of Brooklyn’s small businesses may close under Trump’s tariff policies, according to a recent survey.
About 86% of business owners that responded to a mid-April pulse survey taken by the Brooklyn Chamber of Commerce said tariffs will hurt their operations, with 23% noting that their business is at significant risk of going out of business within the next year.
The 53 businesses that responded to the survey said most of their imports (59%) come from China, followed by Canada, Mexico, Italy and France.
More than 90% of the businesses said their profit margins will likely decrease, and 85% predicted sales will also drop. To combat these declines to the bottom line, the business owners said they would pass the buck onto the consumer and that they have no choice but to raise their prices.
Businesses love predictability, so President Donald Trump's sweeping tariffs definitely put a wrench into business planning, according to Randy Peers, the president and chief executive officer of the Brooklyn Chamber of Commerce.
With the rise in minimum wage, coupled with inflationary pressures, the tariffs "could be the final blow" to many of the borough's small businesses, he said.
New York City currently has more small businesses than ever recorded, according to a 2024 report from the city Economic Development Corporation. As of 2023, there were 183,000 small businesses across the city, over 1,000 more than pre-pandemic levels. Most new business popped up in northern Brooklyn, which added 1,000 small businesses since 2019.
Peers said he has fielded many calls from BCC members who ask him what tools are available to deal with the tariffs and the new business climate. Many owners have said they will be taking a very cautious stance over the next year, which will likely equate to less hiring and a halt to any previously-planned business expansion.
"Many think the tariffs only impact large companies, but as our survey data shows, small businesses will be disproportionately impacted and could force many to close down all together," Peers said.
