New York City’s small businesses could take a major hit if President Donald Trump follows through on a new round of tariffs against China, according to one economic reporter. 

Trump has threatened to impose an additional 50% tariff on Chinese goods if the country doesn’t lift its retaliatory tariffs on U.S. imports—fueling fresh fears for businesses already grappling with rising costs and market instability. 

Greg David, fiscal and economics reporter for TheCity.NYC and former editorial director at Crain’s New York Business, joined “Mornings On 1” Tuesday to break down the impact.  

“It’s bad for small businesses. It’s bad for big businesses, too,” David said. “If you’re importing goods and the cost goes up by 50%, or theoretically 100%, that’s going to be a huge problem.”  

He noted that many business owners are struggling to find affordable U.S. manufacturers, leaving many businesses in limbo.  

“People don’t know how to plan,” he said. “The tariffs were far larger and more expensive than anyone expected.” 

Tap the video player above to watch the full interview.