A small business owner recently took to Reddit to vent about an employee who couldn't understand why his hours were being cut. The reason was indeed “because of the tariffs,” but the employee was baffled.
“He asked, condescendingly, why Canada and China having to pay us an extra tax would slow down sales on the consumer end,” the business owner wrote. “Said it shouldn't make a difference on packaging.”
Don't Miss:
- Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.26/share!
- Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — this is your last chance to become an investor for $0.80 per share.
The post titled, “Does anybody else have that employee, or those employees, who just can't grasp the impact of the tariffs?” shared on r/smallbusiness, quickly gained traction, sparking a heated discussion about tariffs, economic literacy, and the real-world consequences of policy decisions. Many commenters expressed frustration over how common it is for people to misunderstand tariffs and taxes in general.
Who Really Pays the Price?
For years, some politicians have claimed that tariffs are a tax on foreign countries. But business owners and economists alike know that's not how it works. Tariffs are a tax on imports, which means U.S. businesses pay more for the goods they bring in. Those higher costs then get passed on to consumers or result in businesses cutting expenses—like labor.
“I had just placed a few orders at increased pricing, so I gave him the most top-to-bottom explanation I could,” the Reddit poster continued. “He was shocked that tariffs were just an extra tax on us and that the U.S. doesn't just have the capability to produce EVERYTHING.”
That realization hit hard. “At the end, he said that's not what he thought when he voted for them.”
A Broader Issue
The post resonated with many small business owners who have struggled to explain basic economic concepts to employees, customers, and even fellow business owners.
“The amount of time I have spent explaining how tax brackets work to people and their inability to grasp the concept is astonishing,” one commenter wrote.
Another chimed in: “Most people don't even understand their own income taxes. Corporate taxes and international business are way outside of their comfort zone.”
Others pointed out that financial education in schools is lacking, leaving many Americans ill-equipped to understand economic policies that affect them.
Real-World Consequences
Tariffs aren't just abstract political debates—they have tangible effects on businesses and workers. Several small business owners in the thread shared how tariffs have disrupted their supply chains, raised costs, and led to layoffs.
One business owner in the solar industry said tariffs on aluminum and steel have made solar panel installations significantly more expensive. “The average residential system now costs an extra $2,000,” they wrote. “Tried to explain it to [my manager], and he argued that customers shouldn't be paying the price for tariffs. Don't really have much of a choice when our material prices go up 20%+.”
Another commenter shared that their company had to lay off nearly half its staff due to declining sales and uncertainty caused by tariffs. “Our domestic sales have fallen off a cliff since the third quarter. At least 65% month to month. International sales are far worse.”
See Also: Hasbro, MGM Resorts, and Sketchers Use this Pre-IO AI Marketing Firm — and You Can Own a Piece of it From $0.55/Share
Misinformation and Frustration
A recurring theme in the discussion was frustration over how tariffs are portrayed in politics and the media. Many commenters blamed politicians for spreading misinformation about who actually pays tariffs.
“The number of people who couldn't even be bothered to Google ‘How do tariffs work?' in the fall is astounding,” one user commented.
Another pointed out that even high-ranking officials seem confused about tariffs. “My own congresswoman does not understand how tariffs work, which is ridiculous.”
Some argued that the confusion isn't accidental. “Almost all the politicians understand. They just know it's better for them to play dumb,” one commenter suggested.
A Lesson in Economics
For the small business owner who started the discussion, the experience has been eye-opening—but also exhausting. “I'm sick of explaining tariffs and wish that people were better at doing their own research,” he admitted.
Read Next:
- This Startup Is On The Brink Of A Huge Disruption To The $654 Billion Industry – Invest In It Before It Fulfills 800 Pre-Orders
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
