Editor’s Note: Para la versión en español, visita El Planeta aquí.

Tomasa Pujol, owner of Golden Builder Construction, is gearing up to install storefront signs in Lynn, Massachusetts, but she’s already facing challenges, especially with the rising cost of aluminum.

“Our supplier sent a letter saying prices are going up,” she tells The Latino Newsletter.

Sometimes they have to redesign projects to stay within budget, but switching materials can hurt quality or even increase costs.

For a small company like hers, rising costs driven by the 50% tariffs President Trump imposed on all steel and aluminum imports have made planning nearly impossible.

Zacarías Sarita, founder of Sarita Enterprises Inc., says rising tariffs and material costs have reshaped his plumbing business. “We install systems that combine hot water and heating, and those have gotten a lot more expensive because of the materials we need,” he says. A job that once cost $8,000 now runs up to $14,000, with metals like copper and brass driving up prices.

As costs rise, demand drops. “People are waiting, sometimes until their system breaks, because they just can’t afford the repairs,” Sarita says.

“Small, mission-driven businesses are hit hardest because they have to operate more cautiously. Capital isn’t as easily accessible to them,” says Keyur Patel, portfolio manager at Boston Impact Initiative. Small businesses, unlike larger ones, he notes, can’t easily absorb sudden cost hikes or change suppliers when tariffs raise prices. Patel adds that tariffs also create uncertainty, making it hard for them to plan and grow.

Eneida Román, president and executive director of We Are ALX, emphasizes that tariffs affect more than just the construction industry. They are also putting pressure on small businesses and Latino workers.

Higher costs are forcing entrepreneurs in the state to get creative. In the Latino-majority city of Lawrence, Daniel Marra, founder of Fieldstone Embroidery, notes that local businesses continue to prioritize investing in branded products to promote their identity, despite price increases.

“Small businesses in Lawrence rely on us for affordable, flexible orders,” Marra says. “When one restaurant sees another with branded aprons, they immediately ask who made them, and that referral grows our business.”

This tight referral network highlights the strength of Latino entrepreneurship in Lawrence, the state’s 12th-largest city. “We’re the go-to spot for many Latino-owned businesses,” Marra adds. Fieldstone Embroidery also supports nonprofits with donations, demonstrating its commitment to the community.

According to the ¡Vamos Massachusetts! report, released in April with direct support from We Are ALX, there are around 60,000 Latino-owned businesses across the state, where Latinos now make up 13.5% of the population. However, many of these businesses operate on tight budgets and face limited access to financing, making it harder to manage rising costs, hire additional staff, and continue to expand.

Over the last decade, the report notes, Latino entrepreneurs have contributed $30 billion (or 26%) of Massachusetts’s economic growth. Additional barriers, such as rising tariffs, threaten to stall this important progress.

While some sectors see trade policy shifts as a path to recovery, others warn of ripple effects that could hurt small businesses and everyday consumers. Labor leaders in the auto industry believe new tariffs on imported vehicles could help bring manufacturing jobs back to the U.S., but other industries fear higher prices for essential goods.

However, if U.S.-Canada trade talks fail, new tariffs could raise prices on basics like canned beans and pineapple starting July 21, according to the Wall Street Journal.

For Peka, a popular Latin American restaurant in Boston’s Brighton neighborhood, even small price hikes add up, says owner Katiuska Valiente.

“Big chains can absorb costs, but for us, a 10-cent increase per unit can mean profit or loss,” she says.

Peka is adapting by diversifying suppliers, sourcing locally, tweaking recipes, and partnering with other small restaurants to buy in bulk.

Valiente, who is of Venezuelan descent, says local and federal governments should listen to small business owners before making decisions. She suggests that temporary tax incentives, low-interest credit lines, collective buying programs, or subsidies for importing essential ingredients would help businesses like hers adapt to tariff changes.

Such ideas are unlikely to materialize at the federal level, as a Republican-controlled Congress continues to advance policies from Trump’s second administration. Senator Ed Markey (D-MA), Senate Democratic Leader Chuck Schumer (D-NY), and Senator Mazie Hirono (D-HI) introduced the Small Business Liberation Act in response to the tariffs.

For many Latino small businesses, any short-term solutions will need to be local ones.

“Small businesses need stability. Just a bit more predictability in policies would help a lot,” Patel says.

Rosanna Marinelli is a multimedia correspondent for The Latino Newsletter and the News Editor at El Planeta. 

Salazar at CPAC Latino: From the Miami Herald, “Immigrants who have been contributing to their U.S. communities for years while in the country illegally should be given the opportunity to earn legal status, Miami Congresswoman Maria Elvira Salazar said Saturday during a gathering of conservative Latinos.”

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