He says it would be difficult for Black businesses to pass on to their customers a 25% tariff on goods from Canada and Mexico and a 10% tariff on China. The higher cost of goods could lead to a significant reduction in customer demand and employment of Black businesses, meaning those businesses may have to partially or fully absorb the tariffs.

“Losing customers or employees is undesirable because it could result in a dramatic increase in black business bankruptcies or a decline in profits needed for reinvestment to support or grow the business,” said Tribble, who is also secretary of the National Economic Association, a network. black economists, other professionals and graduate students.

Additionally, Black businesses could face environmental and global setbacks. Cunningham says Trump’s planned abandonment of the Paris Climate Accord demonstrates a diminished federal commitment to combating climate change. As such, Cunningham says it unduly affects low-income and minority communities who are often located in areas more vulnerable to environmental hazards.

“Black-owned businesses tied to sustainable practices or clean energy industries could lose federal support, hindering growth in these sectors. »

WHAT FUTURE POLICIES COULD MEAN FOR BLACK WOMEN ENTREPRENEURS

Black women-owned businesses, among the fastest-growing businesses in recent years, could be negatively affected by Trump’s tariff policies.

Rhonda Vonshay Sharpe, president of the Women’s Institute for Science, Equity and Race (WISER), told BLACK ENTERPRISE that nearly 4% of black women reporting self-employment work in nail salons, more than 6% in retail. and 10% in the beauty sector. salons, and more than 15% in healthcare this year. These industries import consumer goods, much of which comes from China, Vietnam, Europe and Korea.

She said entrepreneurs in the beauty, health and retail sectors – or any industry that relies heavily on imported products – should expect tariffs to increase the cost of inventory. She hopes these costs will be passed on to consumers, making beauty salon services more expensive.

“If these businesses have low cash reserves or are unable to obtain loans to offset increased costs, they are more vulnerable to closure,” says Sharpe. “This will have consequences for wealth accumulation, economic mobility and fiscal insecurity. »

WISER, founded by Sharpe in 2016, is a nonprofit research think tank focused on women of color. She is a former president of the National Economic Association.

Another concern is how Trump’s proposed deep cuts in welfare spending, including potential changes to funding for programs such as the Supplemental Nutrition Assistance Program (SNAP), the Department of Education, and Medicare, could have an impact on low-income households.

Sharpe shared that by 2024, Black women will make up 30% of low-income single mothers. “Any reduction in social spending will have precarious consequences for these families and their communities who already lack resources. »

POSSIBLE OPPORTUNITIES THAT THE PROPOSALS COULD BRING

On the positive side, Black individuals and entrepreneurs who invest in the stock market could benefit from Trump’s economic agenda. It has been reported that US stocks have seen an uptrend following the recent election of Trump. Much of the recovery was reportedly fueled by hopes that Trump’s policies could help different industries become more efficient, benefiting from tax cuts, deregulation and a focus on domestic energy production. The technology, energy and financial sectors saw a slight increase.

Additionally, Cunningham says many Black-owned businesses operate primarily on a local or regional scale, including in retail, food service and community industries. According to him, less competition from international players due to tariffs could provide these companies with a more competitive landscape.

He explained that protectionist policies often spur consumer interest in domestically sourced goods and services, a trend that could favor small, Black businesses serving local needs.

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