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U.S. Tariffs, Trump, and the Hidden Tax on Black Communities
When discussing economic issues like tariffs, the dialogue can often seem remote, perplexing, or overlooked—especially in the Black community. However, it's crucial to recognize that tariffs have tangible effects. During Trump's presidency, tariffs were frequently presented as a means to “protect American jobs” or “prioritize America,” but many Black voters were not given a clear understanding of these policies' repercussions. The reality is that tariffs function as hidden taxes on the everyday products we purchase. Unfortunately, these taxes disproportionately affect Black families and Black-owned businesses. Why is this the case? Because it is we, the consumers, who bear the cost when the price of imported goods escalates—and that's precisely the outcome of tariffs.
Black-Owned Businesses: First to Feel the Hit
Black entrepreneurs have always faced uphill battles—less access to capital, fewer business loans, and systemic obstacles at nearly every turn. When tariffs are introduced, those challenges multiply. Many Black-owned businesses operate in industries that rely heavily on imported goods. Think about retail shops, beauty supply stores, restaurants, or auto repair businesses. These businesses often depend on imported products like hair care items from Asia, electronic parts, kitchen equipment, or even cleaning supplies. When tariffs raise the cost of these goods, Black-owned businesses are forced to either raise their prices or absorb the loss. Either choice puts their survival at risk. For some, it’s a breaking point.
Inflation and Interest Rates: A Double Whammy
The ripple effect of tariffs doesn’t stop with higher prices. Tariffs also fuel inflation, which causes the overall cost of living to rise. In response, the Federal Reserve raises interest rates to slow inflation. That might help balance the broader economy, but for Black entrepreneurs, it’s another hit. Rising interest rates make it more expensive to borrow money. Need to buy a new delivery van or finance a restaurant renovation? Now it’ll cost you more. Add that to an already unequal system—where Black business owners are 60% less likely to get full funding from banks—and it becomes clear: we’re not playing on a level field. This is economic suffocation in slow motion.
The Domino Effect on Black Workers
When Black-owned businesses struggle to survive, the entire community suffers. Fewer businesses mean fewer jobs, and when hiring stops or layoffs begin, Black workers are often the first to feel it. It's not just local businesses either—tariffs can trigger job cuts in larger industries like agriculture and manufacturing, especially when other countries respond with their own tariffs in retaliation. That’s exactly what happened during Trump’s trade wars with Canada, China and Europe. States like Georgia, Michigan, and Ohio—home to many Black working-class families—saw layoffs that disproportionately affected Black workers. It's a domino effect that makes it even harder for families to climb out of poverty.
When Everyday Essentials Become Luxuries
Tariffs don’t just raise the prices of business supplies—they raise the price of everything. Grocery store bills go up. Gas costs more. Auto repairs become more expensive. Even things like washing machines, school supplies, and cell phones see price hikes. In places like Atlanta, where many Black families are already living paycheck to paycheck, these increases are more than inconvenient—they’re dangerous. Inflation outpaces wage growth, and people are left making impossible choices between food, rent, and transportation. In a system already stacked against us, tariffs are just another financial punch to the gut.
Entrepreneurship: Our Key to Economic Power
Here’s the good news: Black entrepreneurship is on the rise, and that’s a powerful tool for change. When we own businesses, we create jobs, build wealth, and uplift our communities from within. One great example is Slutty Vegan in Atlanta—a Black-owned business that grew despite economic pressure by using creative branding, social media savvy, and strong local support. Since 2010, Black-owned businesses have increased by 38%, even in the face of systemic challenges. Entrepreneurship gives us more than income—it gives us freedom, independence, and the power to shape our future on our terms.
Thriving Despite the Storm
So how do we keep pushing forward in the face of economic challenges like tariffs and interest rate hikes? First, by building and joining strong networks. Local Black business coalitions, support groups, and cooperative communities help entrepreneurs share knowledge, resources, and support. Second, by going digital. E-commerce and tech tools help reduce dependence on imported goods and allow businesses to reach customers beyond their zip codes. Third, by investing in our own institutions—community banks, credit unions, and co-ops that keep our dollars circulating within the community. These aren't just smart strategies—they're survival skills.
Supporting Black Businesses is Everyone’s Job
Building economic power in the Black community isn’t just about starting businesses—it’s also about supporting the ones that already exist. Every time you shop at a Black-owned business, recommend one to a friend, or repost a business on social media, you’re making an investment in your community. You’re keeping a business alive. You’re helping pay someone’s rent, feed their kids, or hire their first employee. Platforms like MyBrothaSpot.com make this easier than ever. Whether you’re a freelancer, a beauty salon owner, or a neighborhood restaurant, being visible and accessible matters. MyBrothaSpot connects Black-owned businesses to the customers and communities that want to support them. Go ahead and discover Black owned businesses in your area or List your business.
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