Tariffs Take a Toll on Valentine’s Day Sales for Small Businesses

As Valentine’s Day approaches, many small business owners across the country are facing an increasingly difficult reality: higher import tariffs are cutting into profits and threatening one of their most important sales periods of the year.

For florists, gift shops, chocolate makers, and boutique retailers, Valentine’s Day typically accounts for 10% to 20% of annual revenue. But rising import duties on key products and materials are making it harder for these businesses to capitalize on the holiday.

Rising Costs Behind the Scenes

Over the past year, import tariffs have raised the cost of many goods commonly used in Valentine’s merchandise, including:

• Artificial flowers and floral supplies

• Gift boxes, ribbons, and wrapping materials

• Specialty chocolates and confectionery items

• Jewelry components and accessories

• Plush toys and decorative products

These increases affect not only finished goods but also the packaging and materials that small businesses rely on to create gift-ready products.

As a result, many owners say their operating costs rose sharply in 2025 and continue to pressure their budgets in 2026.

Absorbing Costs or Passing Them On

Business owners report facing a difficult choice: absorb higher costs or raise prices.

Some have chosen to keep prices stable in order to avoid losing customers. While this approach helps maintain sales volume, it reduces profit margins and limits owners’ ability to reinvest in their businesses.

Others have raised prices to offset tariffs. In many cases, they report a decline in sales, particularly in impulse purchases and higher-priced gift items. With many consumers already managing higher living expenses, even modest price increases can discourage spending.

Either strategy, owners say, comes with financial risk.

Impact on Inventory and Cash Flow

Higher import costs have also affected purchasing decisions.

To manage expenses, many retailers ordered smaller quantities of Valentine’s inventory. This has led to:

• Reduced product variety

• Fewer specialty items

• Limited customization options

In addition, most Valentine’s merchandise must be purchased months in advance. With tariffs increasing upfront costs, businesses are tying up more capital earlier in the year, putting added strain on cash flow.

For smaller operations with limited reserves, this creates long-term financial pressure beyond the holiday season.

Customer Perception and Pricing Challenges

Some business owners say customers often assume higher prices reflect increased profit margins. In reality, many owners report that most of the increase is driven by higher supplier and import costs.

Because tariff-related fees and shipping surcharges are not visible to consumers, misunderstandings about pricing have become more common. Owners say this can lead to frustration and strained customer relationships.

Broader Effects on Local Economies

The impact of reduced Valentine’s Day profitability extends beyond individual businesses.

Seasonal revenue supports:

• Part-time and seasonal employees

• Local suppliers and service providers

• Downtown retail activity

• Community events and promotions

When holiday sales decline, these interconnected sectors can also be affected, weakening local commercial districts.

How Businesses Are Adapting

In response to rising costs, many small businesses are adjusting their operations. Common strategies include:

• Increasing sourcing from domestic suppliers

• Producing more in-house gift items

• Offering bundled packages

• Streamlining product lines

• Emphasizing craftsmanship and local value

Some owners are also placing greater focus on communicating transparently with customers about pricing pressures and supply challenges.

Looking Ahead

While tariffs are often discussed at a national policy level, their effects are felt most directly by small retailers during key sales periods. For businesses that rely heavily on seasonal revenue, even modest disruptions can have lasting consequences.

As Valentine’s Day approaches, many owners are hoping for strong consumer support to offset rising costs and stabilize operations in the months ahead.

Industry observers note that the situation highlights the vulnerability of small businesses to global trade policies and underscores the importance of monitoring cost pressures as the retail sector continues to adjust.