California Small Businesses Struggle with Tariffs & Fuel Costs

0:00Small businesses in California are getting slammed by tariffs and now skyrocketing fuel costs from the war in Iran. Owners already juggle higher import duties and uncertain refunds after a Supreme Court ruling knocked down some of President Trump's tariffs. Gas prices jumped to $5.55 a gallon statewide, up from $4.79 last year, while the national average hit $4.11 from $3.15. That fueled March inflation and tanked consumer confidence to record lows. Meanwhile, shipping companies are passing on the pain with new surcharges, Amazon added 3.5% for third-party sellers, the US. Postal service plans 8% and FedEx and UPS hiked theirs too. Small retailers, with under 500 employees, can absorb it like big chains and they're shifting manufacturing from China to places like India, to Dodge duties. Owners like Nicole McDonald of a women's back shop saw 2025 sales drop up to 50% cut staff from 11 to 3 and skipped.

1:07Holiday inventory after paying tens of thousands in tariffs. Customers pinch pennies, swapping leather for cheaper denim. Rima Abed Cater eats higher shipping costs to keep clothing prices steady, but it idols her local sewers and pattern makers creating a ripple of lost. Jobs. Port's chief say shippers no longer eat fuel spikes, leading to longer cargo times, 100 to 165 days from Asia versus 30. To 60 before, immigration fears cut so-and-cruise in half at L.A. shops, even for legal workers scared to show up. Apparel makers like Jennifer Grace Carter scale back styles amid fewer hands and pricier materials. This chaos makes planning impossible, from global shores to policy flips at home. Small businesses drive 99% of new jobs here, but without relief, many face shut downs installed innovation down the line, local news powered by AI. This is Canada News Today.