President Donald Trump has moved to impose a new 10% global tariff just hours after the U.S. Supreme Court struck down his earlier tariffs implemented under the International Emergency Economic Powers Act (IEEPA), according to Politico. The swift pivot (if we can call it that), this time relying on Section 122 authority, has reignited uncertainty once again for small and medium-sized enterprises (SMEs) operating internationally.
While the Court’s ruling initially appeared to provide relief for businesses challenging the legality of prior tariffs, the administration’s rapid introduction of a blanket tariff signals that trade volatility remains firmly in place and that Trump is determined to get his way.
For SMEs already having to navigate tight margins, global sourcing and fluctuating currency dynamics, the implications are both immediate and structural.
Margin Shock and Cash Flow Strain
For many SMEs, the 10% tariff represents an immediate cost increase that can’t easily be absorbed – hence the unhappiness of many business owners on Friday evening when the announcement was made.
Bryan Riley, Director of the National Taxpayers Union’s Free Trade Initiative, warns about the effects of uncertainty created by Trump’s constant flip flopping: “One of the hidden costs of his actions is the impact of all the uncertainty, whether you are a business trying to decide whether to expand and hire new workers, or a farmer trying to decide what and how much to plant.” Riley noted that the new tariffs are set to take effect immediately, making avoidance difficult for businesses.
That immediacy translates directly into working capital pressure. Sam Coyne, CEO Europe of Currenxie, explained: “Tariffs already create cash flow difficulties for SMEs as they have to be paid at the point of import while payment from customers is collected days or weeks later.” While he acknowledged that the blanket tariff levels the playing field among global suppliers, he added that businesses will face price compression as they attempt to remain competitive.
At the operational level, SMEs importing goods are already feeling the squeeze. Eric Turney, President/Sales and Marketing Director at The Monterey Company, said: “As a co-owner of a branded merchandise company that imports goods, when a 10% across-the-board import duty lands, it hits fast. It raises landed costs on every patch, pin, coin, hat or ornament we bring in, then ripples into deposits, tighter margins and tougher quoting, since customers compare bids at times.”
Myles Schepetin, CEO at New York Custom Labels, described a similar paralysis: “Tariff uncertainty has made fast decision making difficult for small business. We feel frozen in our tracks, unable to make strategic pricing adjustments until tariff policy clarity and stability returns.”
But, at this point, it doesn’t seem likely that tariff policy clarity is in our immediate future – certainly not while Trump sits at the helm of the American economy.
Regulatory Whiplash and Structural Complexity
Beyond the headline rate, several experts argue that the real burden lies in regulatory instability.
Dipal Dutta, Founder and CEO of RedoQ UK, described the situation as “Regulatory Whiplash” – a pretty apt metaphor, if you ask me.
He stated: “While the invalidation of IEEPA-based duties offered a 24-hour reprieve, the immediate pivot to Section 122, maintaining a 10% global baseline, traps SMEs in a cycle of constant repricing.” According to Dutta, the short-term cost is administrative, with firms spending more on compliance and legal audits than production.
Ed Boal, Chief Domain Expert at StructureFlow, emphasised that tariffs rarely operate in isolation. “The immediate impact of a 15% global tariff is clear: higher landed costs, margin compression and working capital pressure. But for SMEs operating internationally, the deeper cost is structural,” he said, noting that supply chain routing, entity structures and transfer pricing arrangements may all require reassessment.
Jeffrey J. Tafel, President at the National Association of Foreign-Trade Zones, said the Supreme Court’s decision “raises far more operational and procedural questions than it answers at this stage,” underscoring the complexity facing companies operating within trade programs.
Tariffs Vs. Innovation, Adaptation and Strategic Shifts
Despite the pressure, some see longer-term strategic recalibration underway.
Robert Whiteside, CEO at EmpowerRD, described the tariff as “undeniably a margin shock,” but added that it’s also acting as a catalyst. “In a survey of 500 UK SME owners and decision makers, almost half (49.6%) told us that the tariffs are having a positive impact on their appetite for R&D,” he said, suggesting innovation is emerging as a defensive response.
Lindsey Mignano, Co-Founder of SSM and Corporate Attorney for Startups and Small Businesses, warned that startups reliant on imported components may face tighter margins and reduced competitiveness. Smaller firms, she said, have less flexibility to renegotiate supplier contracts or absorb cost increases.
Simon Geale, EVP at Proxima, framed the development within a broader geopolitical shift: “Economic nationalism is still on the rise.” He noted that SMEs are disproportionately impacted because of limited infrastructure and financial resources to mitigate risk.
Jesse Mitchell, Director of Business Development at Strader-Ferris International, pointed to uneven effects across sourcing geographies. “For businesses sourcing from countries that previously faced low or zero tariffs, 15% is an increase – so the impact is not uniform,” he said, adding that policy instability rather than stability should now be assumed.
Consumer Impact and Long-Term Consequences
Several experts believe that while SMEs may initially attempt to share or absorb costs, long-term consumer prices are very likely to rise.
Babak Hafezi, Adjunct Professor International Business at American University, warned that smaller firms have less ability to negotiate favorable pricing or spread costs across volumes. He also pointed to currency dynamics amplifying tariff effects, explaining that dollar devaluation can compound import price increases.
Matthew Ware, CEO at Mark 3, said: “Added costs in the system will be passed on to them,” referring to consumers. He advised SMEs to build trusted logistics relationships and adopt a longer-term outlook in response to volatility.
Alex Saric, Smart Procurement Expert at Ivalua, offered a blunt assessment: “Trade volatility isn’t an occasional shock anymore; it’s a permanent operating reality.” He cautioned against reverting to single-region sourcing simply because of temporary relief.
Indeed, Saric may very well have hit the nail on the head. Random implementations of tariffs and general trade volatility isn’t something that comes out of the blue anymore – it’s very much part of the new normal.
It’s Time To Plan for Instability
Thus, for SMEs operating internationally, the message is consistent – volatility is no longer episodic and irregular; it’s structural.
As Bryan Riley noted, businesses may adopt a “wait and see” posture during the 150-day window tied to Section 122 authority. But, many leaders acknowledge that uncertainty itself carries economic cost.
The Supreme Court ruling may have created a momentary legal shift, but the administration’s immediate response reinforces a broader reality that’s starting to sink in for both Americans and the country’s trade partners.
For SMEs, tariffs aren’t just a percentage point change in landed cost. They’re a stress test of cash flow resilience, supply chain design, pricing strategy and long-term competitiveness in a world where trade policy can (and does) change overnight.
Our Experts:
- Bryan Riley: Director of the National Taxpayers Union’s Free Trade Initiative
- Robert Whiteside: CEO at EmpowerRD
- Dipal Dutta: Founder and CEO of RedoQ UK
- Lindsey Mignano: Co-Founder of SSM and Corporate Attorney for Startups and Small Businesses
- Jonathan Steenberg: Lead UK Economist at Coface
- Alex Saric: Smart Procurement Expert at Ivalua
- Babak Hafezi: Adjunct Professor Internațional Business at American University
- Sam Coyne: CEO Europe of Currenxie
- Jeffrey J. Tafel: President at National Association of Foreign-Trade Zones
- Ed Boal: Chief Domain Expert at StructureFlow
- Simon Geale: EVP at Proxima
- Jesse Mitchell: Director Of Business Development at Strader-Ferris International
- Matthew Ware: CEO at Mark 3
- Myles Schepetin: CEO at New York Custom Labels
- Eric Turney: President/Sales and Marketing Director at The Monterey Company
- Steve Greenspon: Veteran Consumer Products Executive
Bryan Riley, Director of the National Taxpayers Union’s Free Trade Initiative
“There is likely to be minimal price relief for consumers in the short term, since President Trump has made clear he plans to replace the illegal IEEPA tariffs with other tariffs.
“One of the hidden costs of his actions is the impact of all the uncertainty, whether you are a business trying to decide whether to expand and hire new workers, or a farmer trying to decide what and how much to plant. 4
“His new tariffs are supposed to go into effect immediately, so it’s going to be difficult for companies to escape their impact. If anything, instead of front-loading purchases, businesses may take a “wait and see” attitude to see what happens when the new tariffs expire in 150 days.”
Robert Whiteside, CEO at EmpowerRD
“In the immediate term, a 10% global tariff is undeniably a margin shock. It raises input costs, complicates pricing, and forces tough decisions around whether to absorb costs or pass them on to customers. Cash flow pressure and supply chain reconfiguration are real and often immediate.
“Longer term, however, we’re seeing a strategic pivot with tariffs acting as a catalyst for businesses to rethink sourcing, invest in process innovation, and accelerate R&D to improve efficiency or differentiate their offer. While policy volatility makes planning difficult, it is also prompting more resilient, innovation-led growth strategies.
“In a survey of 500 UK SME owners and decision makers, almost half (49.6%) told us that the tariffs are having a positive impact on their appetite for R&D. This is highest among larger SMEs (250–500 employees) where positive sentiment rises to 55.61%, indicating that SMEs are using innovation in the fight against tariff costs.”
Dipal Dutta, Founder and CEO of RedoQ UK
“The February 2026 Supreme Court ruling has inadvertently created a ‘Regulatory Whiplash’ that is more expensive for SMEs than the tariffs themselves. While the invalidation of IEEPA-based duties offered a 24-hour reprieve, the immediate pivot to Section 122, maintaining a 10% global baseline, traps SMEs in a cycle of constant repricing.
“In the short term, the cost is purely administrative: firms are spending more on trade compliance and legal audits than on actual production. Long term, this ‘chopping and changing’ erodes the viability of just-in-time supply chains. For mid-sized businesses, a 10% tariff is an ‘innovation tax’ that forces them to delay digital transformation to cover the margin gap. At RedoQ, we are seeing SMEs move away from legacy ERPs toward ‘Agentic’ systems that can recalculate landed costs and reroute supply chains in real-time. In this environment, agility isn’t a luxury; it’s the only hedge against protectionism.”
For any questions, comments or features, please contact us directly.
Lindsey Mignano, Co-Founder of SSM and Corporate Attorney for Startups and Small Businesses
“Implementing a 10% global tariff would have significant cost implications for startups reliant on imported goods, components, and raw materials to market products and/or services. These impacts are both immediate and long-term, and they stem from higher duties, supply chain disruptions, pricing pressures, and broader shifts in trade dynamics.
“For these startups, immediate consequences include increased expenses for imported materials and components, often resulting in tighter margins and forced price adjustments. In the longer term, these startups may reconsider their global sourcing strategies, renegotiate contracts, or seek alternative suppliers to mitigate the effects of tariffs.
“Additionally, these changes could lead to reduced competitiveness in international markets, as smaller startups have less financial flexibility than BigCo/BigTech when it comes to negotiating better deals, diversifying suppliers, or absorbing tariff costs. It could potentially slow or limit their growth and funding opportunities, especially where ARR is directly tied to venture capital financing.”
Jonathan Steenberg, Lead UK Economist at Coface
“The US Supreme Court’s decision to strike down the tariffs will certainly bring some immediate relief to a number of UK firms exposed to the measures. However, considerable uncertainty remains. Importantly, the ruling applies only to tariffs imposed under the IEEPA framework – the country-level levies – and does not affect the sector-specific tariffs on areas such as automotive products or metals.
“Moreover, the US administration had, before the ruling, signaled that it would seek alternative legal pathways should the Court find the current approach unlawful, as it now has. As a result, while Friday’s decision may appear encouraging on the surface, it does not guarantee the lower tariff rates many companies are hoping for, and further policy changes are likely in the weeks ahead.
“It is also worth noting that tariff revenues represent an important income stream for the US government. Removing them creates a fiscal gap that must be filled through higher taxes elsewhere, spending cuts, or additional borrowing. Each of these options carries potential second-order effects for UK businesses – whether through softer US private or public demand, or through the prospect of higher global interest rates if US borrowing increases materially.”
For any questions, comments or features, please contact us directly.
Alex Saric, Smart Procurement Expert at Ivalua
“The damage is already done. Companies have restructured sourcing networks, absorbed margin pressure and invested heavily in diversification. A Supreme Court reversal does not undo past disruptions, or eliminate the risk of new tariffs under a different authority. Businesses that retreat back to single-region sourcing to chase short-term cost relief risk repeating the same vulnerability. Trade volatility isn’t an occasional shock anymore; it’s a permanent operating reality. Businesses should treat this moment not as relief, but as validation of the need for dynamic supply chain planning.”
Babak Hafezi, Adjunct Professor Internațional Business at American University
“The global 15% tariffs are devastating for smaller companies, as they have less access to capital, have lower abilities to buy in large bulk, and thus be able to negotiate prices in a meaningful way, versus larger competitors. The tariffs in general have lead to less choice in terms of global availability of products, as some countries become non-viable in economic terms for trade because of the tariffs.
“This past Christmas we have already seen less UNIT consumption, vs. last year at the same price, which shows you that it’s inflationary. On a long term basis we will see less companies willing to work with the US, less Foreign Direct Investment into the US, and potentially of even an increase in moving money out of the US where necessary. This, makes the US less investable which leads to less domestic jobs.
“It is important to also state that the tariffs couples with dollar devaluation are making imports less competitive. For example French wine is hit with a 15% tariffs which the deviation of the Dollar vs. Euro further increases the price by an additional 13%, for a total increase cost of 28% by US consumers. This makes French wine non-competitive with domestic producers. Long term this may be a key issue, that we change people behavior in having less global choices.”
For any questions, comments or features, please contact us directly.
Sam Coyne, CEO Europe of Currenxie
“While the Supreme court’s ruling is a win for businesses, it will take years to untangle the refunds from illegal tariffs. In addition, the new 15% blanket tariffs only have a 150 day lifespan, so continued market volatility is guaranteed as SMEs inside and outside the US scramble to work out what this announcement means for them.
“Tariffs already create cash flow difficulties for SMEs as they have to be paid at the point of import while payment from customers is collected days or weeks later. While the change to tariffs levels the playing field among global US suppliers, businesses will face price compressions as they try to maintain competitive prices, placing additional strain on SMEs as they try to compete with better resourced competitors.
“This is where cross border payment providers can add value by offering a cost-effective way to reach suppliers and customers across the globe. Savings on FX fees to protect margins which can be reinvested into company growth to allow SMEs to grow and scale their businesses with confidence in spite of volatile international markets.”
Jeffrey J. Tafel, President at the National Association of Foreign-Trade Zones
“The Supreme Court’s decision represents a significant development for the U.S. Foreign-Trade Zone community [and companies operating within them] – and raises far more operational and procedural questions than it answers at this stage… Clarity regarding tariff authority and implementation is essential for the businesses that rely on the U.S. FTZ program.”
For any questions, comments or features, please contact us directly.
Ed Boal, Chief Domain Expert at StructureFlow
“The immediate impact of a 15% global tariff is clear: higher landed costs, margin compression, and working capital pressure. But for SMEs operating internationally, the deeper cost is structural. Tariffs rarely sit in isolation. They trigger supply chain shifts, new routing decisions, entity changes, and revised transfer pricing logic. This is where complexity multiplies.
“In the short term, firms may absorb the hit or pass it on. In the longer term, they face tougher decisions: relocate production, restructure subsidiaries, renegotiate intercompany arrangements, or rethink market presence altogether. Each move carries tax, compliance, and permanent establishment risks that can outweigh the tariff itself.
“For SMEs without large in-house advisory teams, the challenge is navigating constant regulatory change while maintaining visibility over how goods, payments, and obligations interact across jurisdictions. Tariffs don’t just change costs. They stress-test the design of the entire operating model.”
Simon Geale, EVP at Proxima
“President Trump’s decision to hike global tariffs to 15%, just hours after Friday’s Supreme Court ruling, demonstrates the increasingly volatile nature of supply chain risk. However, despite a constant stream of uncertainty, one thing is clear; economic nationalism is still on the rise.
“Compared to larger businesses, SMEs operating internationally are disproportionately impacted by tariffs. Increased costs squeeze margins overnight, often forcing SMEs to make rapid pricing decisions and renegotiate with suppliers. With often limited infrastructure, SMEs must also manage the hidden costs associated with trade friction, as tariffs impose a significant admin burden on firms.
“Looking ahead, the rewiring of supply chains shows no sign of slowing. The tug of war between the President and Congress is now in full swing and will likely continue until the midterms. Trade policy will stay volatile, which could mean a sustained trend of SMEs passing higher input costs on to consumers.
For SME leaders, the importance of contingency planning must remain front of mind. However, SMEs typically have fewer financial resources to invest in risk mitigation, leaving many dangerously exposed.”
For any questions, comments or features, please contact us directly.
Jesse Mitchell, Director Of Business Development at Strader-Ferris International
“Immediate impact:
“The new 15% global tariff still represents a reduction for many importers compared to the elevated country-specific tariffs they were paying, particularly on China-origin goods that had climbed to 35–40% or higher. In the short term, many small and mid-sized businesses will see lower costs to import into the U.S., which provides real relief. However, for businesses sourcing from countries that previously faced low or zero tariffs, 15% is an increase — so the impact is not uniform.
“Long-term implications:
“The larger issue is uncertainty. Section 122 tariffs announced on Friday are valid for only 150 days and would require congressional action to remain in place, which is far from guaranteed.
If Section 122 tariffs are constrained, the administration will likely shift toward more targeted, sector-based tariffs, similar to steel and aluminum — potentially prompting further legal challenges.
“The key takeaway: tariff volatility is likely to continue, and businesses must plan for policy instability rather than stability.”
Matthew Ware, CEO at Mark 3
“We know these recent changes won’t be the last. The key now is to accept that there are no calm waters ahead, that the global trade landscape has changed and that, in order to cope, SME exporters need to find logistics partners they can trust.
“The simple days of choosing the cheapest shipment option are gone; what’s needed now is clear, reliable information to allow informed decisions.
“For the consumer, these changes (and this volatility) are generally not good news. Added costs in the system will be passed on to them.
“The regulators too will struggle; such rapid adjustments to already complex systems and processes inevitably mean added stress and the increased likelihood of mistakes.
“For SMEs, now is the time to take a longer-term view, manage the current disruption by aligning with trusted logistics partners, and build a long-term relationship that will, ultimately, mean a more stable trading environment.”
For any questions, comments or features, please contact us directly.
Myles Schepetin, CEO at New York Custom Labels
“As CEO of New York Custom Labels, I have direct experience with the impact of tariffs on a small-medium size business.
“Main thought: Tariff uncertainty has made fast decision making difficult for small business. We feel frozen in our tracks, unable to make strategic pricing adjustments until tariff policy clarity and stability returns.
“Price hikes deemed necessary for an import focused small business like ours will need to remain in place while tariff policy is updated under new legal authorities. The 150 day deadline for congressional approval of the newly announced tariffs are being closely watched. Until then, we remain in a holding pattern.
“While in the medium term tariff costs have largely been shared by small business and consumers in a delicate balancing act, in the long term they will inevitably be fully passed onto consumers as businesses are forced to ensure survival in a competitive landscape.”
Eric Turney, President/Sales and Marketing Director at The Monterey Company
“As a co-owner of a branded merchandise company that imports goods, when a 10% across-the-board import duty lands, it hits fast. It raises landed costs on every patch, pin, coin, hat, or ornament we bring in, then ripples into deposits, tighter margins, and tougher quoting, since customers compare bids at times.
“Long-term, the higher cost is uncertain. When the rate or rules change overnight, it turns forecasting into guesswork and stress (starting to get used to it though). Our warehouse holds more inventory, adds buffer time, and spends more on compliance and re-sourcing, which ties up cash that would have gone to hiring or marketing. Small and mid-sized businesses feel it more than giants since we cannot spread the hit across volumes or negotiate freight and duties the same way.
“The cleanest response we have found is to re-price by product line, explain and even show customers the math, offer spec options to hit budgets, and keep contracts clear on duty changes.”
Steve Greenspon, Veteran Consumer Products Executive
“I am a longtime owner and CEO within the home products industry and former Chairperson of the International Housewares Association.
“The situation finally provides clarity on the IEEPA tariffs going forward which is positive. It seems like there may be some stability with the 15% global tariff, though there is speculation that additional tariffs may be put in place to make up for the IEEPA tariffs.
“Most importers and retailers have inventory on hand at the higher tariff landed cost, so cost decreases will need some time to filter through the supply chain.
“The biggest question is if the IEEPA tariffs paid will be refunded to the importers. Since they were ruled as unconstitutional, it is logical that they should be, but no guidance has been issued. Customs and Border Patrol (CBP) have very strong records on who has paid what, so it can easily be traced in nearly all cases. If funds are returned, they would go to the importers who may be forced to pass them along to their direct customers. Consumers and end users will likely never see the retroactive refunds.”
For any questions, comments or features, please contact us directly.
