Core Viewpoint - The article discusses the significant impact of tariffs on small businesses in the U.S., highlighting a surge in demand for short-term credit lines from lending startups as companies seek to manage increased costs associated with tariffs on imported goods [2][15]. Lending Startups - Slope, a lending startup founded in 2021, has seen a 730% year-over-year increase in credit line applications as businesses face higher tariffs [15]. - The firm typically serves businesses with annual revenues up to $25 million and can approve loans of up to $250,000 instantly and up to $3 million within two business days [6][15]. - Other lending startups like Clearco and Wayflyer have also reported significant increases in loan applications, with Clearco extending 46% more loans in July and August compared to the same months in 2024 [6][15]. Impact of Tariffs on Businesses - Tariffs averaging 50% on Chinese goods have created immediate financial pressure on importers, forcing them to seek credit to cover duties that must be paid upon arrival of goods [15]. - Small importers are increasingly relying on credit lines to finance imported merchandise, as tariffs create substantial upfront costs before sales can be made [7][15]. - A New Jersey-based importer took a 60-day credit line from Slope to cover $300,000 in duties, indicating the necessity of advance funds to manage cash flow [8][9]. Price Adjustments and Consumer Impact - Businesses are passing tariff costs onto consumers, with some increasing prices by 15% to 20% to cover higher tariffs [10][16]. - The American consumer has not yet felt the full effects of the trade war, as price hikes from tariffs typically take time to reach retail prices [4][15]. Industry Adaptation - Companies are adapting to the tariff environment by seeking short-term financing to maintain liquidity and manage operational costs [7][11]. - Some businesses, like a health and beauty brand, are securing credit lines in anticipation of future tariff increases, indicating a proactive approach to financial management [11][16]. - The article notes that the current tariff situation is forcing many small businesses to work harder to maintain profitability, with some potentially exiting the market while others may gain market share [12][16].