Trump’s China Trade Deal: What this means for Black American businesses

The 2025 trade deal between the U.S. and China, signed under Donald Trump’s renewed leadership, is already shaking up the global economic landscape. While headlines focus on tariffs, tech restrictions, and diplomatic tensions, the real impact will be felt most acutely by small businesses, especially those owned by Black individuals.

Why? Because Black entrepreneurs, already navigating undercapitalization, supply chain gaps, and limited global access, now face even more pressure to adapt as the cost of doing business shifts yet again.

Trump’s China trade deal reintroduces targeted tariffs on electronics, textiles, and industrial materials. These aren’t abstract numbers; they directly impact product costs for beauty brands, fashion startups, tech resellers, and e-commerce stores, many of which are Black-owned and reliant on Chinese manufacturing.

From ring lights to synthetic wigs, the products Black entrepreneurs use to build six-figure Shopify stores and beauty brands are often sourced from China. A 20% tariff hike doesn’t just touch margins, it forces entrepreneurs to rethink their entire supply chain.

What This Means for Black-Owned Businesses

According to the U.S. Census Bureau’s 2022 Annual Business Survey, Black-owned businesses are more likely than white-owned businesses to depend on international suppliers for affordable inventory. When that cost rises, it’s not easy to pivot. Access to alternative vendors, bulk buying power, or domestic manufacturers isn’t equal across the board.

Additionally, Black entrepreneurs are less likely to receive early-stage venture funding, making them more susceptible to price fluctuations. And with fewer financial cushions, every added dollar in cost chips away at growth potential.

Adapting with Strategy, Not Panic

This trade shift is a wake-up call. It’s time for Black millennials in business to:

• Diversify your supplier base — Look for Black-owned or U.S-based alternatives. You might pay more upfront, but you’ll support local economies and potentially gain more control over your logistics.
• Understand import laws and tariff codes — Learning how to properly classify your products can save thousands in fees. Free resources, such as the SBA and SCORE, offer guidance.
• Bulk buy before the impact hits — If tariffs are coming in phases, now is the time to stock up and lock in lower rates.
• Strengthen your pricing model — Raise prices with value-added features like better branding or faster shipping, rather than cutting into your already-thin profit margins.
• Leverage group economics — Team up with other Black entrepreneurs to pool resources, buy in bulk, or even share warehouse space.

Global policy isn’t separate from the Black economic future; it’s tied to it. If Black business owners remain reactive instead of strategic, trade deals like this one will always feel like setbacks. However, when we study them, plan around them, and move with intention, we transform international moves into community power plays.

Takeaway:
This isn’t just about tariffs, it’s about control. Black entrepreneurs can’t afford to ignore global politics. With the right information, we can move from being price takers to power players.