08-04-2025
How Trump's tariffs will affect your favorite D.C. small business
D.C.'s small business community and maker scene are scrambling to navigate President Trump's tariffs, business owners tell Axios.
The big picture: The " Liberation Day" tariffs are imposing a baseline 10% tariff on U.S. imports. China, meanwhile, is set to see 104% tariffs.
They're hitting virtually every country on earth (except Russia) and nearly all goods. And they're set to take effect Wednesday.
Zoom in: Many D.C. business owners are worried the tariffs will mean they have to up prices — potentially deterring customers at a time when they have less money to spend.
Increased costs could also impact hiring and expansion.
By the numbers: The District has over 75,000 small businesses, comprising over 98% of all businesses in the city, per the Greater Washington Board of Trade
And small businesses employ 48% of D.C.'s workforce.
The intrigue: "Locally made" is a big selling point for many DMV-based products — but many of the materials used to assemble these items come from overseas, says Carina Romo of Shop Made in D.C.
Think tea leaves, tins for candles, cans for drinks, packaging, hardware — the list goes on.
The chainlet's makers are currently trying to increase stock so they don't have to raise prices. But "supply and pricing remain the biggest questions right now," Romo tells Axios.
Case in point: " We are very worried" about being able to remain in business, says Rebecca Melsky, co-founder of Princess Awesome, a local children's clothing brand that's been around since 2013. (Melsky lives in Brookland, her co-founder in Silver Spring.)
Manufacturing clothes in the U.S. is difficult, says Melsky — it's cheaper, more streamlined and more efficient to work with foreign manufacturers. "Small businesses," she says," are going to hurt from [higher tariffs] far more than Target and Walmart."
Pre-tariffs, Melsky budgeted for a dress made in Bangladesh to cost $13.32 with normal duties, she says. Now it will cost $17.76 — a 33% increase.
After a manufacturer's suggested retail price for a dress made in Hong Kong jumped by about $5, Melsky tells Axios, Princess Awesome raised the price on their website and included a note that the increase was due to "President Trump's decision to raise tariffs on China."
But they're cognizant that customers will pay only so much for kids' clothes.
"It's very, very nerve-wracking and stressful and frustrating," says Melsky.
What they're saying: The D.C. Chamber of Commerce is monitoring the impact of tariffs on local businesses and meeting with local owners, chamber president Chinyere Hubbard tells Axios in a statement.
