But no small business is buying napkins and straws directly from China.
But no small business is buying napkins and straws directly from China.
And as a result of tariffs their costs go up (or they see supply disruption, delaying orders due to uncertainty), and so they _charge more_. Like, this isn't difficult.
Small businesses are sometimes more vulnerable to this sort of disruption than large businesses, precisely because they do _not_ have much control over their supply chain; if their distributor said "we don't know if we're going to have to pay $0 or $1000 or $50,000 tax on that container of widgets when it arrives in a month, and we currently sell it for $50,000, so we're just not going to order it", then the small business is potentially kinda out of luck; even if _they_ would have been willing to take the risk on paying more for the thousandth of a container they normally buy, the distributor may not be willing to take the risk on the whole container.
Why do you believe they're not affected by tariffs? Do you know what a tariff even is?