Do tariffs actually increase small business values?

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April 09, 2025

by a professional from Bishop's University in Moncton, NB, Canada

Everyone seems so bummed by the threat of trade tariffs. Is there a way this could actually increase the value of small businesses? Sure, but it hinges on a few factors that I’ll dissect here today in my latest video.. Check it out right here: https://youtu.be/BZGVhh9jH4o

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Reply by a searcher
in Toronto, ON, Canada
^redacted‌ Thanks for looping me in. Whether the business value increases or decreases, changes really on the industry of the business, its reliance on raw material or finished product imports vs. domestic production, Sales exposure (domestic vs foreign), pricing power (passing on costs to consumers) and also competitive dynamics.

Think there is enough commentary on how businesses are getting impacted adversely due to the material costs or even sales impact, for example certain businesses such as manufacturers exporting to US may see slower sales atleast temporarily. On the flip side, there will always be some winners too. For example domestic manufacturers with predominantly domestic supply chains may be a winner compared to their competition. Even sales for domestic businesses may increase due to the tariffs and trade wars. US consumers and businesses may prefer US suppliers, Canadian may prefer their own to reduce/avoid tariff charges or simply for nationalism reasons as being seen in Canada. Now whether that offsets foreign sales slowdown is a deep dive question. Depends on the particular business and its exposure.
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Reply by a searcher
from University of Pennsylvania in Jacksonville, FL, USA
two scenarios, 1) there is no domestic substitute or complement, business either go bankrupt or pass cost to consumers. 2) there is a domestic substitute or complement, empirically this manufacturer either small or large will raise price to be just lower than imported products due to higher demand.
in 2nd condition, it's good for the domestic business or specifically manufacturer. but either case, consumers are screwed.
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