Tariffs on imported goods imposed by President Donald Trump will impact small business owners.

AP News reports that the Trump administration has announced new tariff policies, including a 34% tax on imports from China, a 20% tax on imports from the European Union, and a 10% baseline tax on most imports.

According to a press release from the White House, the 10% baseline will take effect at 12:01 a.m. EDT on April 5, 2025, while the countries with higher tariff rates will have to comply by at 12:01 a.m. EDT on April 9, 2025.

Trump hopes to restore balance to global trade and believes imposing these tariffs will lead to billions in revenue for the U.S., AP News notes.

“I will sign a historic executive order instituting reciprocal tariffs on countries throughout the world. Reciprocal, that means they do it to us and we do it to them… This is one of the most important days in my opinion in American history,” Trump said during a “Make America Wealthy Again” event on April 2, according to Fox-9 in Minneapolis, MN. “It’s our Declaration of Economic Independence. For years hardworking American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense. But now it’s our turn to prosper and in so doing use trillions and trillions of dollars to reduce our taxes and pay down our national debt, and it’ll all happen very quickly. With today’s action we are finally going to be able to make America great again.”

These tariffs will now impact everyone in the United States who should now expect to see an increase in cost within sectors such as the auto industry. A 25% tariff imposed on all foreign automobiles has already gone into effect. The cost of housing, clothes, and electronics will also be on the rise.

According to a study released by Yale Budget Lab, families could see an increase between $2,700 to $3,400 annually, WSB-TV 2 in Atlanta, GA, reports.

“Trump just hit Americans with the largest regressive tax hike in modern history – massive tariffs on all imports. His reckless policies are not only crashing markets, they will disproportionately hurt working families,” U.S. Rep. Gregory Meeks (D-NY) said, according to KSL News in Salt Lake City, UT.

Small business owners will also be impacted. The Lip Bar Founder and CEO Melissa Butler shared that the tariffs will require her to increase the pricing of her products. The majority of the brand’s products are manufactured in Taiwan, which has been subjected to a 32% tariff by Trump, notes Reuters.

“When you see the prices of your favorite brands and your favorite products go up, don’t be surprised,” Butler said on a video shared on Instagram. “Trump just announced his tariff plan. The Lip Bar manufacturers 85% of our products in Taiwan. All of our paper and plastic goods get made in China. We have a little bit being made in Italy, a tiny bit being made in The States. And this 32% increase in Taiwan, we can’t we can’t just eat that. That goes against our margin, and our margin is our profitability. Our profitability is how we pay people, how we give people bonuses, how we invest in marketing. Small businesses especially can’t afford these tariffs. This is insane. If y’all see our prices go up, this is why… It’s f-cked up. I don’t know what’s next.”

Taiwan intends on having a discussion in Washington to address the tariffs, which it labels as “unreasonable” and adds that it has been a central player in the United States’ economy.

“In a time of growing geopolitical complexity, the U.S.-Taiwan partnership is not only a driver of shared economic prosperity but also central to supply chain security and regional stability,” the American Chamber of Commerce in Taiwan said in a statement, according to Reuters.