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In a vise of slowing demand and rising costs, small businesses are signaling trouble ahead

By Brittney Sherman

In a vise of slowing demand and rising costs, small businesses are signaling trouble ahead

Christopher Altman, who runs Trees Company in Oakland, typically enjoys steady business year-round thanks to California’s temperate climate. But starting in mid-March, demand for his tree trimming services collapsed — a downturn he attributes to growing economic uncertainty driven by the Trump administration’s escalating trade war. Altman, now relying on savings and credit to cover payroll, says he’s seen his once-regular flow of job requests shrink to just a couple per week.

His experience illustrates the ripple effects of the administration’s tariff strategy, which is straining both household and business spending. As companies grapple with higher costs from new import taxes and consumers grow cautious about the economic outlook, service-sector businesses like Altman’s are feeling the squeeze. Economists warn that the most severe trade penalties have yet to hit, as Trump’s administration holds off on implementing sweeping tariffs until at least July — pending negotiations with up to 90 countries. Without successful deals, the resulting broad tariffs could further raise supply chain costs and deepen the slowdown already starting to show on Main Street.


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