Centre County business leaders say tariffs have ‘immediate and significant’ impact
Centre County officials are urging lawmakers to help solve mounting challenges that threaten to hurt small businesses.
In a letter sent to federal legislators May 14, local officials said the rising costs of goods, raw materials and equipment — as well as ongoing economic uncertainty — seriously threaten small businesses in Centre County. The letter, signed by leaders from the Downtown State College Improvement District and the Chamber of Business and Industry of Centre County, specifically cites ever-changing Trump administration tariffs as a key hurdle businesses must face.
“We recognize and support any efforts aimed at reducing barriers to trade. Agreements that effectively lower these obstacles will open new markets for U.S. goods and services, supporting American job growth,” the letter reads. “It is vital to swiftly conclude these discussions and eliminate the recently imposed U.S. tariffs, as they continue to negatively affect the broader U.S. economy and specifically harm businesses here in Centre County.”
According to the letter, recent data shows downtown State College retailers have seen freight costs rise by 50% over the last year, while retail purchase prices increased by between 35% and 45%. Hikes in costs could force businesses to purchase inventory earlier and potentially put tight budgets and cash flows at risk, the officials wrote.
Uncertainty surrounding tariffs has contributed to more cautious spending and a greater reliance on high-interest credit lines, the letter argues. Businesses that placed orders last fall, for example, could face unexpected increases before shipment — a challenge that could erode trust in supply agreements, officials wrote.
“Small businesses are the backbone of Centre County’s economy. They provide jobs, invest locally and embody the entrepreneurial spirit that drives our communities,” the letter reads. “Unlike larger corporations, they often lack the resources to absorb sudden cost hikes or navigate global supply chain disruptions. As a result, many are being forced to reduce staff, raise prices and delay growth, threatening local economic momentum.”
The business leaders who signed the letter — Lee Anne Jeffries, the DSCID’s executive director, and Greg Scott, the CBICC’s president and CEO — said the federal government should conduct an economic impact analysis of tariffs on small businesses at the local level. Additionally, the Trump administration should consider exemptions or relief for key regional industries and support alternative strategies that promote U.S. manufacturing without harming small businesses.
“We respectfully urge federal legislators to evaluate and address the unintended consequences the tariffs are placing on small businesses,” the letter reads. “The impacts of tariffs on our small businesses and local economy are immediate and significant.”
“We ask our elected officials to stand with Centre County’s small businesses and ensure that national trade policy supports local prosperity,” the letter concludes.
Tariffs — essentially taxes applied on imports from other countries — rose to a new level of national prominence after President Donald Trump began his second term in January. Over its first few months, the Trump administration has enacted or proposed plans for tariffs against major trade partners, including a 10% baseline tariff for all countries. On-again, off-again tariffs have stifled global industries and shaken markets, experts say.
Most costs produced by tariffs are passed on to consumers, economists say. Should they remain in place, tariffs will likely force higher prices for cars, electronics, groceries, utilities and more for consumers across the country.
You can read the DSCID’s and CBICC’s full letter to federal legislators below.
%202.JPG)