Small businesses in the Lower Hudson Valley are caught in the crossfire of a trade war they didn’t start — and they are not getting the help they were promised.In a column last week, I introduced readers to Michael Chiltern, the owner of Wolf and Warrior Brewing. That column was about the value and the cost of producing local products like beer and newspapers.
As we were chatting, Chiltern mentioned that many of the products he uses to craft locally brewed beer originate outside our borders, from places like Canada (food grade aluminum cans) and Germany (hops and other grains).
Chiltern told me that President Donald Trump’s tariffs have been a massive added cost to his operations.
Beckerle Lumber in Rockland County is also feeling the strain of Trump’s Tariff’s. Owner Michael Beckerle told News 12 that about 20% of their lumber comes from Canada.
“Everybody wants a crystal ball — what’s going to happen? It’s definitely putting a major concern that there’s going to be a slowdown in our industry,” he said.
Last month, U.S. Supreme Court ruled that Trump exceeded his authority when he imposed sweeping tariffs using the International Emergency Economic Powers Act, or IEEPA.
To replace the invalidated IEEPA tariffs, the administration imposed a temporary 10% global tariff under the Trade Act of 1974.
Kelly Loeffler, Trump’s small business administrator, visits Rockland
On Friday, Feb. 27, I got an email from the communications team from the Small Business Administration letting me know that Administrator Kelly Loeffler would be in our area for a couple of events with Republican Rep. Mike Lawler on Monday, March 2. Loeffler and Lawler were going to be touring Celtic Sheet Metal in Orangeburg.
It’s not often that a cabinet member, even a minor one, comes to the Lower Hudson Valley so I was eager to find out how she thought small businesses were dealing with the impact of Trump’s tariffs.
Luckily, a former colleague works in her communications office, so I was able to secure a one-on-one interview.
On Sunday evening, I got a call inquiring about what I would be asking Loeffler. Based on my friendship with her spokesperson, I agreed to give Loeffler’s team a sneak peek. That is not something I usually do.
I told the spokesperson that I would be asking about the impacts of tariffs on the small businesses they are meant to serve.
Eight minutes later, I received a call informing me that for specious reasons, my interview could not be accommodated. I was stunned that this line of questioning from a local columnist would strike such fear in a sitting cabinet member. I was told I could ask a question at a press gaggle following Monday’s tour.
Following the tour, I did get to ask a question. I made it a two-parter and even snuck in a follow up.
It became immediately apparent that I didn’t need a one-on-one interview about small businesses suffering under the strain of Trump’s tariffs. In fact, I could have asked 20 questions and would not have gotten a real answer from Loeffler.
Yes, Trump’s tariffs impact Lower Hudson Valley small businesses
I told Loeffler the story of the local brewery owner and asked what the SBA could do to help him with the costs of tariffs.
“Well, the SBA’s number one objective is to provide capital,” Loeffler responded. “It’s their lifeblood to grow, invest, hire and expand and to manage through economic change.”
She continued the macroeconomics lecture, saying, “That’s what’s so important about this president is he is fighting for change on Main Street where we don’t have dependency on China.”
That was a fine canned response — but it was not remotely relevant to my question. I tried asking Loeffler again, explaining that small business owners who are impacted by Trump’s tariffs aren’t looking to “grow, invest, hire and expand.” They can’t make those plans with the economic uncertainty created by Trump’s tariffs.
Her answer was more dissembling about global markets.
The SBA’s traditional tools — like guarantees, disaster assistance and technical support — are designed for hurricanes, floods and pandemics. The SBA is simply not structured to respond quickly to policy-driven economic shocks like tariffs. Yet, tariffs function like a tax increase on small importers and manufacturers. When input costs rise 10%, 20% or even 25% overnight, small businesses face economic emergency.
The SBA and its administrator must get their heads out of the sand and their fingers out of their ears and listen to the small businesses they exist to serve. Trump claims his global trade deals based on tariffs are a huge success. He makes vague promises of $2,000 rebate checks for Americans derived from his genius tariff scheme. The president should start with delivering for small businesses — the backbone of our economy and the sector that employs more Americans than any other.
In the Lower Hudson Valley, too many entrepreneurs feel unprotected.
Small businesses are resilient. But resilience is not infinite.
Matt Richter, a veteran Hudson Valley journalist, is local news and regional opinion manager for lohud.com and The Journal News. He can be reached at mrichter@lohud.com.
This article originally appeared on Rockland/Westchester Journal News: Trump’s small business chief has no answers on tariff stress | Opinion
Reporting by Matt Richter, Rockland/Westchester Journal News / Rockland/Westchester Journal News
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