A protester with the Main Street Alliance holds a sign outside the U.S. Supreme Court, as its justices are set to hear oral arguments on President Donald Trump’s bid to preserve sweeping tariffs after lower courts ruled that Trump overstepped his authority, in Washington, Nov. 5, 2025.<\/p>\n
Nathan Howard | Reuters<\/p>\n
Some small businesses that have to pay the bill for President Trump’s new tariffs are taking on high-interest rate merchant cash loans and other forms of debt to cover that added cost.<\/p>\n
And several business owners who have taken on that costly debt told CNBC they fear financial disaster because of it.<\/p>\n
Companies that spoke with CNBC reported being offered predatory lending interest rates north of 30% to cover their tariff-related costs.<\/p>\n
Those people say that their companies could be left in a deep financial hole even if the Supreme Court upholds lower federal court rulings that the new tariffs are illegal and orders the federal government to refund companies the duties they have already paid.<\/p>\n
U.S. Customs and Border Protection earlier this week said it has collected more than $200 billion in tariffs this year as a result of new duties imposed by Trump.<\/p>\n
The Cut Buddy, which appeared on the television show “Shark Tank” in 2017, sells products online and in big box retailers such as Walmart, Target, and CVS.<\/p>\n
Josh Esnard, CEO of The Cut Buddy, a shaving products company, said that he receives multiple calls each day from high-interest rate lenders.<\/p>\n
“They are very aggressive and deceptive in their practices in reaching out both by phone and email,” Esnar told CNBC.<\/p>\n
Esnard said even if the Supreme Court rules the tariffs are illegal and his company is issued a refund, the money will not make Cut Buddy whole.<\/p>\n
Joann Cartiglia, owner of Queen’s Treasures, a Ticonderoga, New York-based toy company, said that she has had to take on loans that have altered her business exit strategy.<\/p>\n
“We were planning to retire in two years,” said the 64-year-old Cartiglia.<\/p>\n
“My husband and I have invested a lot of our retirement money into this business, and now I have absolutely no hope of retirement,” she said.<\/p>\n
Utah-based Village Lighting Co. said that its bill for tariffs on imports in the 100 shipping containers it ordered this year is approaching $1 million.<\/p>\n
“About 50% of our sales are fixed based on agreements made with our customers, so we have sold a lot of those goods to them directly at a loss,” said Jared Hendricks, co-owner of Village Lighting, which has been in operation for 23 years.<\/p>\n
Hendricks also said that potential refunds from a Supreme Court ruling will not be a silver bullet for suffering businesses.<\/p>\n
“This experience demonstrates that the tariffs are not sustainable,” he said.<\/p>\n