The Trump administration recently eliminated a loophole allowing businesses to avoid tariffs on purchases under $800, impacting many small businesses. However, the majority of small businesses in the US are service providers who won’t be affected. While prices may rise, as long as people can afford items, they will keep buying.

The latest jobs report indicates the end of the long labor market boom. Current inflation is around 2.7% annually, but the middle class’s net worth remains at historical highs. Bond and stock markets are still strong, suggesting workers are mostly keeping up financially.

Despite the uncertainty caused by Trump’s tariffs, smart business owners are diversifying away from higher-priced foreign goods, finding alternate suppliers, and utilizing financing solutions like Buy Now Pay Later. Some are even storing goods in bonded warehouses to avoid tariffs. The economy will likely absorb the impact of these tariffs as long as income and wealth continue to grow.

Read more at Yahoo Finance: The panic over tariff details is different than its bigger picture