The Trump administration’s rollercoaster tariffs have led to a significant downturn in the economic landscape, particularly affecting small businesses in San Diego.
With 93% of businesses in San Diego County employing 12 or fewer individuals, the ramifications of tariff policies pose an existential threat to these enterprises.
Jessica Anderson, interim president and CEO of the San Diego Regional Chamber of Commerce, addressed the local impact of these tariffs, emphasizing that uncertainty is the predominant challenge faced by small business owners.
Anderson stated, “It’s the uncertainty that has the biggest impact on our small business community in the San Diego region. The San Diego Regional Chamber, we’re the largest chamber on the west coast. We have over 2,000 members, the majority of whom are small businesses.
These tariffs are really a decision between life and death. If you’re a small business, think about if you have a lease coming up to extend your business for another year.
If you don’t have any certainty on what pricing for your products are going to look like, you’re not going to be able to extend that lease.
So we’re really talking about major decisions to our economy and particularly the trickle-down effect on our small business community.”
The tariffs imposed by the Trump administration, particularly those against China, have not only affected the national economy but have also led to retaliation from China, which has imposed its own tariffs on American goods.
This retaliatory action has hit local defense companies hard, including Cubic Corp, Source Intelligence, Kratos Defense, and Firestorm Labs.
Anderson highlighted the massive impact these tariffs could have, stating, “This has the potential to be truly devastating for our economy as a whole.
We’re concerned about the auto industry as well. You know, the 90-day pause is certainly encouraging, but again, it’s following the bouncing ball and that ping-pong effect of what’s going to come tomorrow.
So we’re not just concerned about the tariffs on China; we’re concerned about tariffs as a whole.
Whether it’s the auto industry or the construction industry, this will all have a very direct impact on the cost of living for your average San Diegans.”
As businesses in San Diego grapple with these uncertainties, Anderson mentioned that providing guidance has become increasingly difficult.
She explained, “It’s very hard to offer any guidance at this point. It’s very hard to offer guidance in this era of uncertainty.
So what we’re focused on is advocacy. We’re focused on making sure the Trump administration is hearing directly from our San Diego business community about the direct impacts of these tariffs on our binational economy.”
The San Diego Regional Chamber of Commerce recently returned from its annual trip to Washington, D.C., where they conveyed a strong message to the Trump administration regarding the severe economic consequences that could arise from the current tariff policies.
“We told the Trump administration that this has the potential for a huge economic downturn. A recession is potentially coming.
We spoke on behalf of our members who are saying they’re considering closing, they’re considering not buying new products.
They’re considering significantly tapering down.
And most importantly, we have a relationship with Mexico where we’re not just trading together, we’re producing together.
So this is not a tax on just Mexican companies. This is a tax on U.S. businesses and on U.S. companies directly.”
In response to these concerns, Anderson reported that the administration engaged positively, expressing interest in hearing direct data from affected companies.
“We’ve had very positive conversations. They said they want to hear data, they want to hear the direct stories of companies.
And so that’s what we’re focused on providing. We are here and stand willing to work with the new administration.
We’re not in attack mode. We’re trying to get our message across. That’s why we saw advocacy in action with our face-to-face meetings with leaders at our nation’s capital just last week.”
As consumers brace for increased spending as a result of the tariffs, expected to reach up to $4,000 a year, Anderson noted that businesses are already preparing for the next round of tariffs following the recent 90-day pause.
The overarching concern remains that this uncertain economic climate could discourage spending and further curtail the entrepreneurial spirit that is a hallmark of San Diego’s small business community.
image source from：https://www.kpbs.org/news/politics/2025/04/15/how-trump-tariffs-are-impacting-san-diego-businesses
