Small businesses across the U.S. are bracing for a tough ride as President Trump’s tariffs on Chinese-made goods take effect. The move could tighten already slim profit margins and lead to higher prices for customers, leaving many shop owners worried.

Sarah Pitkin, who runs four hardware stores in Virginia, says nearly half of her inventory comes from China. Power tools, barbecue grills, and electronics—popular items in her stores—could see price increases thanks to the new 10% tariff. For example, a $129 drill might now cost over $140. With narrow profit margins, Pitkin says she’d have to pass the full cost onto her customers.

“People can’t pay more for stuff, and won’t pay more for items,” she explained. “Your items shrink to the point where you’re really going to evaluate if you’ll keep certain shops open.”

Consumer electronics, electrical equipment, and textiles and apparel are among the top goods the U.S. imports from China, according to recent data. These tariffs are likely to ripple through the economy, hitting small businesses especially hard. Many rely on these imports, either directly or through distributors.

A survey by the National Small Business Association found that over half of small business owners are worried about the impact of these tariffs, with nearly a third feeling “very concerned.”

The stakes are high for small shops already operating on thin margins. As prices rise, some owners may face tough choices about what to stock—or even whether to keep their doors open.

For now, customers and businesses alike are left wondering how much more they’ll have to pay—and whether they can afford it.