The busy holiday season will soon be here. For businesses that deal with imported goods in the Philadelphia area, this year brings added uncertainty due to trade policies and tariffs, which threaten to affect their bottom line.

Back in June, Constant Contact, an online marketing firm, conducted a study of more than 2,000 small businesses globally to better understand the state of small businesses in 2025. 

The study found 44% of small businesses cite rising costs as their top concern, and 62% said tariffs have negatively affected their business. Nearly half — 46% — of small businesses said they have raised prices because of tariffs, according to the report. 

Caryn Liss, showroom director of Parisa Rugs and Decor in Old City, shared her concerns.

"It has an effect on the cost of goods. Every day we get about 10 emails from our vendors saying what the increase or what the applicable tariff will be," Liss said. "A lot of our rugs come from India. Right now, the tariffs are 50% from India. A lot of our vendors will split the tariff with us, but whatever it is, we have to pass it on to our client, and it's a significant cost."

Dave Charest, Constant Contact's director of small business success, said businesses are also changing how they reach their customers and the conversations they're having with them. 

"If you look at a larger competitor, of course, they're probably a little more able to eat those costs, but whereas a smaller business probably has to pass those on, but what I like out of this is that we're seeing them be more communicative with their customers," Charest said.

"We talk about it all the time, we usually give them a quote and we say whatever the tariff is at the time, we import the rug, we will assess you at that time, depending on the going rate," Liss said.

It's not a pleasant conversation to have on a daily basis. 

"I can't say they're overjoyed at the increased prices," Liss said. Some customers pay the higher cost, she said, and others ask about other options, such as vintage rugs that are already in stock.

The impact of the trade policy and the tariffs on the different businesses really depends on what those businesses sell. For example, at Parisa Rugs and Decor, it's prevented them from planning altogether.

Charest from Constant Contact shared what he sees as a major positive sign in that endeavor.

"I think this is another scenario where we see how resilient small businesses are," Charest said. 

Liss described the situation as fluid.

"There's no model for it right now; we kind of are just figuring it out," Liss said.

She remains hopeful. 

"I'm hoping that the regulations will change," Liss said. "I'm hoping there'll be a change from that end and there won't be a 50% tariff from India, so that would be my hope."