Boise, ID – Idaho’s small and medium-sized businesses, which make up a significant portion of the state’s exporters, are facing significant financial strain due to tariffs enacted by the Trump Administration. According to the Idaho District Export Council, Idaho exports over $4 billion in goods and services annually, with 85% of these exporters categorized as small or medium businesses. These businesses are particularly vulnerable to the economic impacts of tariffs.
Kristin Kyle-McQuesten of the Idaho District Export Council explained to Idaho Matters that tariffs act as taxes that increase the cost of traded goods, affecting both exporters and consumers. The Council highlighted the plight of an Idaho-based electronics company that has seen its tariff payments skyrocket from $10,000 to $200,000 a month to import goods. This dramatic increase in costs poses a significant challenge, especially for smaller companies that might not have the financial resources to absorb such expenses.
Rendi Bell of the Council emphasized the critical nature of financial liquidity for these businesses, stating, “The money part really, really matters. Access to capital and companies being able to continue their regular business if they can absorb that much of it.”
The situation may become more precarious as the reciprocal tariffs, which have been on hold for nearly 90 days, are set to resume on July 8. If they do, more companies could face the daunting task of managing these additional costs or risk going out of business.
Through these challenges, local businesses continue to navigate the complex landscape of international trade, hoping for relief or adaptation strategies to mitigate the financial impacts of tariffs.
