Some small businesses that have to pay the bill for President Trump’s new tariffs are taking on high-interest-rate merchant cash loans and other forms of debt to cover that added cost.
And several business owners who have taken on that costly debt told CNBC fear financial disaster because of it.
Companies that spoke with CNBC reported being offered predatory lending interest rates north of 30% to cover their tariff-related costs.
Those people say that their companies could be left in a deep financial hole even if the Supreme Court upholds lower federal court rulings that the new tariffs are illegal and orders the federal government to refund companies the duties they have already paid.
U.S. Customs and Border Protection earlier this week said it has collected more than $200 billion in tariffs this year as a result of new duties imposed by Trump.
