It’s only been a little over 100 days since the latest round of trade policies and tariff hikes shook the U.S. economy, but for small businesses, the tremors are already shaking the ground beneath us. While on the surface much still appears somewhat normal, a slow, devastating unraveling is well underway. Orders are being canceled. Forward planning is at a standstill. For small businesses like Stella Carakasi, this is more than a policy change, it’s an existential threat, with a future hanging in a precarious balance.
A Storm Beneath the Surface
With tariffs now ranging from 25% to 145% on a wide range of goods, the cost of doing business has skyrocketed almost overnight, with apparel and textiles among the hardest hit. While large corporations might have the financial buffer to weather the storm, often through layoffs and strategic cutbacks, small businesses are left with no such safety net. Many are paralyzed, unable to absorb the sudden spike in costs or pivot supply chains quickly enough to stay afloat.
According to the American Apparel & Footwear Association, more than 97% of apparel sold in the U.S. is imported. That means nearly every small boutique, fashion label, and independent store is feeling the squeeze. Retailers are canceling orders or refusing to place new ones, not because demand is down, but because they don’t know what tomorrow will bring. The uncertainty Washington has created a chilling effect that could empty store shelves by fall, traditionally a peak sales season.
Late Spring, No Orders
Spring is a critical time of the year. For fashion and apparel companies, spring is when we place orders for the upcoming fall season. These are not just transactions; they are lifelines. Without the ability to commit to these orders, the entire ecosystem, designers, pattern makers, fabric mills, seamstresses, logistics partners, grinds to a halt.
We are in a dangerous holding pattern, waiting to see what new tariffs or executive decisions might come out of Washington next week, or even tomorrow. The unpredictability is paralyzing, and time is not on our side. Each week of inaction pushes more small businesses toward the edge. And when companies stop ordering due to uncertainty, shelves go empty. Employees get laid off. And small businesses start to close.
This is Personal
At Stella Carakasi, we are not just a brand. We are a small, family-owned business that has been designing, creating, and manufacturing for more than 30 years. Over the years we’ve employed incredibly talented individuals. Many of our employees have been with us for years, they’re not just staff, they’re family.
Small businesses like ours aren’t in it for massive profits. We do it because we love what we create, we love our customers, and we believe in offering something truly unique, something that doesn’t come from fast fashion or mass production. We create clothing with integrity, sustainability, and purpose. It’s about passion, community, and contribution.
If money were the only motivator, we would have taken our talents to big corporations with their large compensation packages and cushy benefits. But we chose a different path, one rooted in creativity and service. And now that path is being threatened.
A Telling Sign: The Dominoes Are Falling
The signs are all around us. Just recently, PwC, one of the largest accounting firms in the U.S. laid off 1,500 of its audit and tax staff, on top of the 1,800 already let go earlier. Why? Fewer businesses to audit. Less activity to monitor. It’s not just a tech slowdown or an isolated downturn. It’s systemic. And small businesses like ours are bearing the brunt of it, fighting for survival in a system that increasingly favors the few.
What We Need Now
We need our customers, our communities, and our policymakers to pay attention. This isn’t a drill. If we continue down this road, the businesses you love, the ones that know your name, that tailor your style, that contribute to our economy, will disappear.
We aren’t just writing this to sound the alarm for ourselves. We’re speaking on behalf of thousands of small businesses across the country who are being squeezed by trade policies they had no say in and cannot afford to endure.
Your support during this uncertain time means the world to us. Every purchase you make, every word of encouragement, every social media share, it helps keep real people employed, shelves filled, and the dreams of small business owners alive.
We are not just fighting for profit margins; we’re fighting for survival and the survival of our employees and their families.
We must pay attention. The signs are everywhere. And if we don’t act soon, if policies don’t shift to support the backbone of the American economy, then this could be the final chapter for many beloved small businesses.
If this chapter closes, it won’t be because we weren’t good enough. It will be because policy ignored people. But it doesn’t have to end this way.
Let’s rewrite the ending, together.
Stella Carakasi
