This week, I had a long conversation with an entrepreneur who owns retail stores. The conversation centered on how tariffs are impacting her business. Most of the items she sells are imported from China. The only other countries with manufacturing capabilities are also subject to high tariffs, albeit lower ones than China. So, shifting to other countries wouldn’t solve her problem.

This entrepreneur traveled to the West Coast to understand how her wholesalers are planning to react. It wasn’t good. Some are raising prices to reflect the full tariff amount. Others plan to close up shop and walk away (after decades in business).

This entrepreneur’s wholesale costs will more than double, and she will likely have to double her prices. The challenge is that she doesn’t think her customers will be willing to pay double. She figures that revenue will decline regardless of what she does; the question is how much.

She also shared that she’s now considering starting other businesses. The possibility of her retail store failing for reasons beyond her control is real. It’s forcing her to be open to new opportunities in other industries to pay the bills.

I don’t know what will happen with tariffs. I suspect lots of entrepreneurs are rattled and thinking about plan B. I’m curious about what this will lead to. We could see a burst of entrepreneurial activity. When entrepreneurs’ backs are against the wall, they’re forced to do their best work. With tons of them facing this situation at the same time, some good is bound to come out of it.