[et_pb_section fb_built=”1″ _builder_version=”4.16″ custom_padding=”22px|||||” global_colors_info=”{}”][et_pb_row admin_label=”CTA” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” collapsed=”on” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_divider color=”#397389″ divider_weight=”2px” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_cta title=”The data is in! See what family owned businesses are saying about today\u2019s challenges and opportunities.” button_url=”https:\/\/familyenterpriseusa.com\/family-business-survey\/” url_new_window=”on” button_text=”Read the 2025 Annual Survey Executive Survey now! Click here.” disabled_on=”off|off|off” admin_label=”Call To Action Top” _builder_version=”4.27.4″ _module_preset=”default” header_font_size=”22px” background_color=”#397389″ custom_button=”on” button_bg_color=”#ff0019″ custom_margin=”-17px|||||” custom_padding=”16px||19px|||” global_module=”9695″ saved_tabs=”all” global_colors_info=”{}”][\/et_pb_cta][et_pb_divider color=”#397389″ divider_weight=”2px” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_5,3_5,1_5″ admin_label=”Author Byline” _builder_version=”4.24.3″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/www.brownandstreza.com\/davidkeligian” link_option_url_new_window=”on” collapsed=”on” global_colors_info=”{}”][et_pb_column type=”1_5″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_image src=”https:\/\/familyenterpriseusa.com\/wp-content\/uploads\/2024\/05\/Team-members-Pat-S.jpg” title_text=”Patricia M. Soldano” _builder_version=”4.25.1″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][\/et_pb_column][et_pb_column type=”3_5″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Author” _builder_version=”4.25.1″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]<\/p>\n
By Patricia M. Soldano<\/a> [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_5″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” collapsed=”off” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”1″ _builder_version=”4.27.4″ text_font=”||||||||” text_font_size=”16px” background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]<\/p>\n <\/p>\n <\/p>\n If you follow reports from economists, the media, politicians, and leaders of family-owned businesses<\/a>, which make up nearly 60% of the private workforce in America, there are a lot of contrasting views on the impact of tariffs \u2013 and they\u2019re changing by the minute.<\/p>\n While the White House highlights support for tariffs among American manufacturers, who laud the long-term efforts to increase domestic manufacturing, which currently makes up 10% of U.S. GDP, they contrast sharply with concerns from economists and family business owners<\/a> that the impact of tariffs on imported goods, particularly those on goods from China, Mexico, and Canada, will lead to higher prices for consumers and threaten the livelihoods of their generationally-owned family businesses.<\/p>\n On the bright side, one recent trade deal outlined with the United Kingdom shows progress is being made in hammering out deals. This leaves 179 international trade deals to be finalized.<\/p>\n The greatest \u201cinvisible tax<\/a>,\u201d many say, is the uncertainty of it all.<\/p>\n The Federal Reserve Board Chairman, Jerome Powell, recently added to this notion in the Fed\u2019s latest statement: \u201cUncertainty about the economic outlook has increased further. The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.\u201d<\/p>\n The \u201cuncertainty tax<\/a>\u201d is a major impediment right now for family-owned business<\/a> planning and investment.<\/p>\n \u201cI\u2019ve got whiplash from all of this,\u201d said Mark Zandi, Chief Economist at Moody’s Analytics in a recent newscast. \u201cIt can\u2019t be good for businesses trying to make investment decisions,\u201d he said. \u201cThe uncertainty is a heavy weight on the economy.\u201d<\/p>\n Ryan Sweet, Chief U.S. Economist, Oxford Economics, said, \u201cThe Trump Administration inherited an economy that was firing on most, but not all, cylinders.\u201d In any given year, he added, \u201cthe probability of a recession is around fifteen percent. Now, it’s essentially a flip of the coin whether we have a recession this year.\u201d<\/p>\n Other financial experts weigh in with parallel, or vastly different, views. <\/p>\n Stephen Moore, former Trump economic advisor and publisher of the Unleash Prosperity financial newsletter, says if the Trump dealmakers \u201ccan get deals done we could have a boom\u201d in the U.S. economy. But Moore also adds the near term \u201ccould be difficult.\u201d<\/p>\n JPMorgan Chase Chief Executive Officer, Jamie Dimon, said in a recent Fox news report it\u2019s important the White House \u201cshows progress on deals, and now is the time to make progress.\u201d <\/p>\n Dimon, like Moore, agreed it is likely \u201cin the short-term there could be more inflation, higher prices,\u201d and perhaps \u201ca short-term recession\u201d due to the uncertainty.<\/p>\n What Family-owned Businesses Say<\/strong><\/p>\n If you speak with family-owned businesses<\/a> leaders there is a mix of feelings that depend on the industry.<\/p>\n \u201cThe tariffs have adversely impacted our business unlike any other event in our company’s history,\u201d says Southern California-based Eno Brands Chief Strategy Officer, Kevin Tsao. Eno Brands is a fashion jewelry manufacturer, working with partner manufacturers in China on such brand names as Kate Spade and Tory Burch.<\/p>\n \u201cThe pace at which it was announced and rolled out did not allow any time for proper planning or mitigation efforts,\u201d said Tsao. \u201cIt has completely upended our industry.\u201d<\/p>\n For Eno Brands, the tariffs and lack of guidance on timing from the White House makes \u201cplanning virtually impossible,\u201d according to Tsao.<\/p>\n \u201cWhile I understand the theory behind tariffs, the roll-out and uniformity across industries do not make sense,\u201d he says. \u201cA desire to bring more on-shoring makes sense in specific industries in which automation, technology and budget are available, this makes sense, but to do so across the board in industries where U.S. workers do not want to work is illogical at best.\u201d<\/p>\n Tsao is not alone in his thinking.<\/p>\n In a recent poll by Family Enterprise USA, some 60 family-owned businesses<\/a> leaders weighed in on the Trump Administration tariff plan.<\/p>\n When asked if \u201cThey are affected by tariffs?\u201d some 54% of family-owned business leaders<\/a> said \u201cYes,\u201d they were affected. On the other hand, 46% said \u201cNo.\u201d<\/p>\n When asked a follow up question: \u201cAre you concerned about tariffs affecting business?\u201d the results were more dramatic.<\/p>\n Over 64% said \u201cYes,\u201d they were concerned about tariffs, while 36% said \u201cNo,\u201d they were not.<\/p>\n \u201c(It\u2019s) hard to plan right now, we’re stocking up critical items, and building up raw inventory,\u201d said Marc Goodhart, President of Fabrication, of family-owned Goodhart & Sons, Inc., Lancaster, Pa. Goodhart is a fourth-generation family-owned company steel fabricator serving power generation, alternative energy, and pollution control markets.<\/p>\n \u201cIronically, customer demand has been strong, but we’re anticipating a softening,\u201d Goodhart says. \u201cIn short, planning beyond a year feels futile, preparation to adapt is our main focus.\u201d<\/p>\n Goodhart, like many, believes addressing unfair trade with China was long overdue, and he is \u201cglad to see it happen.\u201d However, he believes, that if the tariffs remain, and prices remain high, he is \u201cnot sure this will be as fruitful for U.S. manufacturing as promised.\u201d<\/p>\n Goodhart believes supply chain restructuring will take far longer than people anticipate.<\/p>\n \u201cIf we have another policy change three years from now, we’ll again be faced with more volatility,\u201d he says. \u201cI do, however, appreciate the administration’s intentions.\u201d<\/p>\n While many family businesses<\/a> are looking for alternate sources of materials and production, and for new markets, these strategies are time-consuming, costly, and often not feasible as high tariffs are now placed on all countries.<\/p>\n Big Tariff Targets<\/strong><\/p>\n China, of course, is the biggest target in the tariff battle. <\/p>\n Discussions are underway with the China to manage tariffs, are they were reduced for 90 days from 124.1% to 30%, but this is likely to change yet again as discussions heat up or cool down.<\/p>\n If you are in the U.S. steel or specialty metals business the view on tariffs is often different since this industry has long sought tariff protection from overseas competitors dumping low-cost product in the U.S. market. But even there, the policies feel haphazard and dangerous, some family-owned businesses<\/a> say.<\/p>\n Sue Totten, Director of Totten Family Office at specialty steel tube manufacturer, TottenTubes, Azusa, Calif., saw steel prices rise immediately from $670 a ton to $950 a ton, a 42% increase.<\/p>\n \u201cDemand was affected as companies panic-purchased to avoid price increases,\u201d Totten says. \u201cPrices go up higher than even the tariff’s twenty-five percent rate, leaving room for imports to come in cheaper, then prices have to go down.\u201d<\/p>\n Totten sees tariffs creating a profitability spike. While this created a great first quarter, she says, \u201cwe have concerns about our margins in the second and third quarters.\u201d<\/p>\n In many industries, buyers are hedging their bets by keeping inventories low and planning for a recession, or a variety of economic calamities.<\/p>\n \u201cThis was not a factor in 2024,\u201d says Totten. \u201cWhen we were planning for 2025 the economy was universally lauded as very strong and \u2018the envy of the world\u2019.”<\/p>\n \u201cThey help protected industries in the short term,\u201d Totten says. \u201cBut these tariffs feel haphazard and feel like they are going to have a negative effect on the consumer, which negatively effects the economy and business overall. The tariff approach seems to be without strategy and ham-handed.”<\/p>\n End the Uncertainty<\/strong><\/p>\n The impact of global trade policy falls squarely on the shoulders of our nation\u2019s largest economic engine: family-owned businesses. It\u2019s up to our elected lawmakers to make sure this burden doesn\u2019t go too far, and the tax<\/a> of uncertainty dissipates as soon as possible. <\/p>\n Thankfully, the uncertainty presented by the expiration of the Tax Cuts and Jobs Act<\/a>, particularly the 199A deduction for pass-through businesses, is currently being addressed by Congress and will hopefully be resolved well before the tax cliff at the end of the year.<\/p>\n [\/et_pb_text][et_pb_divider divider_style=”dotted” disabled_on=”off|off|off” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_text disabled_on=”off|off|off” admin_label=”Become a member text” _builder_version=”4.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” global_module=”5822″ global_colors_info=”{}”]<\/p>\n As we prepare for what promises to be a pivotal year for America, we’re asking you to consider becoming a member.<\/p>\n The need for fact-based reporting of issues important to family owned businesses<\/a> and protecting a lifetime of savings<\/a> has never been greater. Now more than ever, successful families<\/a> and family owned businesses<\/a> are under fire. That’s why Family Enterprise USA<\/a> is passionately working to increase the awareness of issues important to family owned businesses<\/a> built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC include high income tax rates<\/a>, possible elimination of valuation discounts, increase in capital gains tax<\/a>, enactment of a wealth tax<\/a>, and the continued burden of the gift tax<\/a>, estate tax<\/a> and generation skipping tax<\/a>.<\/p>\n [\/et_pb_text][et_pb_button button_url=”https:\/\/familyenterpriseusa.com\/donate\/” button_text=”Become a Family Enterprise USA Member” button_alignment=”center” disabled_on=”off|off|off” admin_label=”Become FEUSA member button” _builder_version=”4.21.0″ _module_preset=”default” custom_button=”on” global_module=”6503″ global_colors_info=”{}”][\/et_pb_button][et_pb_divider divider_style=”dotted” disabled_on=”off|off|off” _builder_version=”4.19.4″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][et_pb_video_slider disabled_on=”off|off|off” admin_label=”Video Slider Family Business Stories 1″ _builder_version=”4.19.1″ _module_preset=”default” global_module=”5963″ global_colors_info=”{}”][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=3k9d1tFz5AU&t=22s” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=kG0lDKbmJxg” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=HFK8SG1VSco” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=Z15BqbFOYck” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=bsn5xYrxhJg” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=PL3K3rK7ioA&t=5s” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][et_pb_video_slider_item src=”https:\/\/www.youtube.com\/watch?v=CpXRbRBhPKc” _builder_version=”4.19.1″ _module_preset=”default” global_colors_info=”{}” show_image_overlay=”off”][\/et_pb_video_slider_item][\/et_pb_video_slider][et_pb_text disabled_on=”off|off|off” admin_label=”FEUSA Statement” _builder_version=”4.21.0″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” link_option_url=”https:\/\/familyenterpriseusa.com\/donate-2\/” global_module=”5910″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n Family Enterprise USA<\/a> promotes generationally<\/a> owned family business<\/a> creation, growth, viability, and sustainability by advocating for family businesses<\/a> and their lifetime of savings with Congress<\/a> in Washington DC.\u00a0 Since 2007, Family Enterprise USA<\/a> has represented and celebrated\u00a0all sizes, professions and industries of family-owned enterprises and multi-generational<\/a> employers. It is a bi-partisan 501.c3 organization.\u00a0Family foundations can donate.<\/a><\/p>\n [\/et_pb_text][et_pb_text disabled_on=”off|off|off” admin_label=”Hash tags & Tags” _builder_version=”4.27.4″ _module_preset=”default” global_module=”6498″ global_colors_info=”{}”]<\/p>\n #incometax #CapitalGainsTax #R&DExpensing #DontPunishSuccess #GrantorTrusts #StepUpinBasis #likeKindExchanges #AcceleratedDepreciation #EstateTax #Deathtax #wealthtax #taxLegislation #CongressionalCaucus #incometaxrates #repealestatetax #AdvocatingForFamilyBusinesses #FamilyOwnedBusiness #WomenOwnedBusiness @FamilyEnterpriseUSA #FamilyEnterpriseUSA<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" By Patricia M. Soldano President Family Enterprise USAFamily-Owned Businesses Feel the Impact of New Tariffs, \u2018Weight of Uncertainty\u2019 Family-owned businesses across America are keeping their fingers crossed they will survive the cost and uncertainty of the Trump Administration\u2019s global trade agenda. If you follow reports from economists, the media, politicians, and leaders of […]<\/p>\n","protected":false},"author":2,"featured_media":14290,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","footnotes":""},"categories":[48,3,92,94],"tags":[],"class_list":["post-14285","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-family-businesses","category-feusa","category-multi-generational-business","category-pat-soldano"],"acf":[],"_links":{"self":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/14285","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14285"}],"version-history":[{"count":4,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/14285\/revisions"}],"predecessor-version":[{"id":14291,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/posts\/14285\/revisions\/14291"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=\/wp\/v2\/media\/14290"}],"wp:attachment":[{"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/familyenterpriseusa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n<\/strong>President<\/em>
\nFamily Enterprise USA<\/p>\nFamily-Owned Businesses Feel the Impact of New Tariffs, \u2018Weight of Uncertainty\u2019<\/strong><\/h1>\n
Family-owned businesses across America are keeping their fingers crossed they will survive the cost and uncertainty of the Trump Administration\u2019s global trade agenda.<\/strong><\/em><\/h2>\n
We hope you’ve enjoyed this article. While you’re here, we have a small favor to ask…<\/em><\/h4>\n
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