Alaska Small-Business Confidence Dips Amid Tariff Concerns

Downtown Anchorage, photographed on Tuesday, Sept. 3, 2024. (Loren Holmes / ADN) Alaska small-business owners report a significant decline in financial and economic outlook due to political uncertainty surrounding President Donald Trump’s implementation of high tariffs on trading partners, according to a recent survey by the Alaska Small Business Development Center (ASBDC).

The survey, which included responses from nearly 300 businesses, indicates a sharp decrease in optimism, marking the “highest level of economic pessimism ever recorded” in its eight-year history. State director Jon Bittner noted that public uncertainty is a major concern, impacting how businesses price and market their products.

Last year, approximately 60% of businesses anticipated a prosperous financial condition in 2024; however, that figure dropped to just 46% by April. Comparatively, the current outlook is reminiscent of the economic climate during the COVID-19 pandemic, but without federal assistance to buoy businesses, Bittner emphasized.

Political uncertainty emerged as a primary challenge for Alaska businesses, alongside rising inflation and operational costs. The tariffs, which have led to increased prices from suppliers, are causing 48% of businesses to raise their prices. The survey also revealed that the percentage of businesses expecting a declining financial situation soared from 25% to 63% within a few months.

Jenna Wright, president of the Anchorage Economic Development Corporation, expressed that the results are unsurprising, noting a shift in businesses’ expectations from growth to merely maintaining their status quo. Despite challenges, some optimism remains regarding potential opportunities in Alaska’s energy sector.

Bittner warned that Alaska is uniquely vulnerable to these tariff impacts, as the state relies heavily on imports and is affected by potential trade tensions with Canada.