Recently enacted tariffs have roiled financial markets and caused significant challenges for small businesses that rely on imported goods to keep their companies going. Carefully planned financing, however, can be a great tool to help small business owners navigate these uncertain times.  

 Most Recent Tariff Updates & Moves

As of July 23, 2025, some of the proposed tariffs that could affect U.S. small businesses the most are: 

• A baseline 10% tariff on all foreign goods remains in place, although the U.S. has threatened to increase that number if countries don’t negotiate trade deals by Aug. 1. 

• The U.S. has threatened a 30% tariff on all goods from Mexico starting Aug. 1, unless Mexico is willing to negotiate a new trade agreement. Mexico’s main exports to the U.S. include agricultural products, vehicles, machinery, medical devices and mineral fuels. 

• The U.S. is threatening a new round of 35% tariffs on all Canadian goods imported into the U.S. unless Canada negotiates a new trade deal with the U.S. by Aug. 1. Canada is the second-largest trading partner with the U.S. It’s exports to the U.S. include vehicles and vehicle parts, crude oil, natural gas and lumber. 

• The U.S. has threatened an additional 34% tariff on all goods from China and has set an Aug. 12 deadline to negotiate a trade deal. The U.S. currently imports a wide variety of goods from China, including electronics, computer parts, home goods, furniture, textiles and toys.  

• The U.S. has threatened a 30% tariff on all goods from the European Union and has given the EU a deadline of Aug. 1 to negotiate a new trade agreement. Currently, the largest EU imports into the U.S. include pharmaceutical products, medical appliances, industrial machinery, aircraft and automobiles.  

• President Trump expressed anger over what he calls Brazil’s unfair trade practices and political motivations and has threatened a 50% tariff on goods from Brazil, which include oil, iron and steel, agricultural products and machinery. The administration set an Aug. 1 deadline for Brazil to negotiate a new trade agreement with the U.S. 

• Although the U.S. and South Korea currently have a free trade agreement, the U.S. is threatening to slap a 25% tariff on goods being imported from the country and has set an Aug. 1 deadline for South Korea to negotiate a trade deal with the U.S. South Korea’s main exports to the U.S. are semiconductors, vehicles, consumer electronics, appliances and machinery. 

How Financing Can Help with Tariff Changes 

Tariff policies can change quickly, leaving small business owners with lingering uncertainty and anxiety. Fortunately, there are various financing options that can help you manage your cash flow, stock up on inventory, and keep your business running during these turbulent economic times. 

 A Business Line of Credit 

When your small business is facing uncertain times, you’ll likely want a financing option that offers speed, flexibility and control over how much you can borrow and how you repay it. One of the most adaptable financing tools available is a business line of credit.  

If you qualify, a business line of credit gives you a predetermined line of credit that you can draw from whenever needed for the duration of your agreement — and you only pay interest on the amount you’ve used. One of the key advantages of a line of credit is that when you draw on it, you don’t have to justify to a lender what you are using the money for, unlike some other financing options. You can use the money for any business expenses you may need to meet, especially when times are uncertain.  

This includes adding to your inventory, making operational upgrades or increasing your marketing budget. 

MORE >> See if you qualify for a business line of credit with a quick application 

Revenue-Based Financing  

Revenue-based financing can be a valuable tool to help your business stay afloat during tough economic times, especially if your business has a strong sales history. While it tends to be more expensive than other types of financing, revenue-based financing can help stabilize your cash flow and keep your business going when uncertainty is high, such as during periods of rising costs due to tariffs.  

If you’re confident that your customer base will remain loyal even after price increases, a revenue-based financing arrangement allows you to access a lump sum of cash upfront in exchange for a percentage of your future revenue over a predetermined period. For example, let’s say you receive $100,000 through a financing deal with a fee of 20%. That means you agree to pay back $120,000 over time by sending 20% of sales to the financing company on a daily, weekly, or monthly basis. There’s no set end date for the payments; they simply continue until the full amount is paid off.   

Unlike a traditional small business loan with fixed monthly payments, revenue-based financing is more flexible. If sales slow, the percentage stays the same, but the actual payment amount goes down too, since it’s tied to how much the business is making. It’s a way of “borrowing” that adjusts with your cash flow. The money you receive upfront can help you with marketing, growth and making the necessary adjustments to your small business to handle higher prices.    

Equipment Financing 

If your small business relies on heavy machinery to operate and you’re worried about rising equipment costs due to tariffs, equipment financing could be a good solution for your business. Equipment financing is essentially a loan from a third-party lender to help you purchase the equipment your business needs, whether it’s a CNC processing machine, a tractor/trailer or even office computers and furniture. As long as it’s not real estate, equipment financing can be used by qualifying businesses to purchase just about any type of equipment. 

If your credit rating isn’t quite strong enough for a loan from the dealer, or if you can’t afford a down payment, equipment financing can help you secure the money you need — often with an affordable interest rate — so you can lock in today’s equipment prices and keep your business running. With tariffs creating uncertainty in the market and the possibility of rising interest rates if inflation kicks in, financing your equipment now could be an easy way for you to protect your business from future cost increases. 

SBA 504/CDC Loan 

If you’re seeking additional working capital to handle the economic uncertainty caused by tariffs, the Small Business Administration (SBA) 504 loan program may be a good option. These loans are designed to assist small businesses — especially those in underserved communities — with creating jobs, renovating their storefronts and purchasing equipment and other fixed assets. Any type of business with a physical location is eligible to apply. 

504 loans are backed by the SBA and are granted by certified development corporations (CDCs). They are generally easier to obtain than an SBA-backed 7(a) loan and tend to carry a lower interest rate than most commercial loans. A 504 loan can be a great way for your small business to obtain working capital as it navigates the challenges posed by tariffs.  

Explain Rising Prices 

If you do need to raise your prices because of ongoing trade wars and rising costs, be sure to clearly and honestly communicate to your customers beforehand why you are doing so. This can be done through emails, text or on your small business’ website and social media platforms. Additionally, keep an eye on how your larger competitors are responding. If they are also increasing prices due to tariff-related uncertainty, carefully monitor how much of a price hike customers are willing to tolerate.  

MORE >> Raising Your Prices to Combat Inflation 

Get Creative in Keeping Costs Low 

Another action you can take if trade wars are forcing you to hike prices is cutting your overhead where you can. This could include everything from reducing utility expenses to adjusting staffing levels. Additionally, get creative with your product offerings. If you’re forced to raise the prices of your products, try offering discounted product bundles to your customers. Consumers are always attracted to a sale or discount.  

Additionally, while it may be difficult to do so, explore the possibility of sourcing or manufacturing your products in the U.S. If applicable, explore whether you can get raw materials or finished goods from domestic suppliers rather than importing them from overseas. This could include food products, cotton or machinery and equipment.  

Bottom Line 

The threat of trade wars and rising tariffs has created a tremendous amount of economic anxiety and uncertainty for small businesses, especially those dependent on imports. Exploring the use of various financing tools and using them in a targeted way can help relieve the stress tariffs place on the cost of goods and keep your business running. Whether it’s managing cash flow, locking in equipment prices, adapting your pricing strategy or getting creative with your operational costs, the right tools can help your business survive.