How To Navigate Tariff-Fueled Financial Stress As A Woman Entrepreneur

With new U.S. tariffs taking effect, financial pressure is mounting for small business owners, especially women entrepreneurs. Recent data from The Budget Lab at Yale shows that the average effective U.S. tariff rate, after accounting for 2025 adjustments, has climbed to 22.5%—the highest since 1909. Resulting in a 2.3% short-term rise in consumer prices. That may sound minimal, but it translates to an average household loss of $3,800 in 2024 dollars.

The annual hit is even steeper for families at the bottom of the income distribution. These losses can directly impact growth, hiring, day-to-day operations for women entrepreneurs (many of whom are bootstrapping and reinvesting every available dollar) and directly impact their physical and mental health.

We know that in 2025, 65% of women have said that their primary source of anxiety is their finances, with inflation and recession being significant concerns. However, the stress can extend beyond a mere state of mind. According to a new study from Mastercard and MoneyLion, 67% of Americans indicate that inflation has affected their mental or physical health, with 38% reporting heightened anxiety. The emotional toll is particularly pronounced among women, who are more likely to postpone or delay mental health care, and among caregivers.

I talked to Erika Nuno, EVP, Head of Strategic Finance at MoneyLion and she explained that “This is particularly true for parents and caregivers, who are also hard-hit by the strain of inflationary pressures with 84% of parents with children under 18 report that inflation has negatively impacted their physical or mental health, compared to 59% of non-parents”

As economic pressures can weigh heavily on the minds of many women entrepreneurs, it is vital to recognize the early signs of financial stress and how to navigate through it. This may be the first step in understanding your next business move and establishing a routine that safeguards you from the mental and physical toll these economic changes may impose.

Spotting Financial Stress Triggers Beyond Tariffs

Financial stress does not always show up as panic, it often appears in smaller, quieter ways: second-guessing expenses, feeling paralyzed when making business decisions, or burning out from trying to do more with less. For women entrepreneurs, especially those with a history of financial hardship, these stress responses can intensify during moments of economic uncertainty.

According to Experian, 68% of U.S. adults report having faced financial trauma or are currently experiencing it, with women more likely to feel the weight of financial anxiety. This is often due to systemic barriers, past economic instability, and persistent income disparities. And while financial literacy can equip women with the knowledge to manage money, it does not always address the psychological and behavioral patterns that shape financial decision-making.

Studies show that financial trauma can lead to avoidance behaviors, chronic underinvestment, and hesitation in wealth-building strategies even among women who appear financially stable on paper. These stress responses can ripple through a business, influencing everything from whether to hire a contractor to how aggressively to pursue growth.

With that much coming from anxiety, it is important to recognize how stress manifests (overworking, underspending, or freezing entirely) and understand the broader context. Zooming out from the current economic wave allows you as entrepreneurs to name what is happening, separate emotion from strategy, and make decisions from a grounded place.

Is It Possible To Turn Financial Pressure Into Entrepreneurial Growth?

History says yes. While economic downturns bring undeniable challenges, they have also been periods of reinvention and opportunity, particularly for women entrepreneurs. During the COVID-19 recession, for example, women-led businesses did not just survive; many pivoted, adapted, and found new revenue streams that reshaped their industries.

According to a Wells Fargo report, the pandemic accelerated a shift in how and where women were building businesses. The number of women-led transportation and warehouse businesses jumped by 51%, while gains were also seen in sectors traditionally dominated by men, including finance, insurance, and real estate.

This kind of resilience to economic uncertainty is mainly led by working differently or innovating in their own ways. Women entrepreneurs have historically been more likely to bootstrap, self-fund, and create flexible business models with different ideas, which can become a superpower in uncertain times.

That said, growth during economic pressure requires financial intentionality. It means identifying what is no longer working, what you can leave behind, and what you need to carry on for your purpose. It also means doubling down on strategies that balance financial stability with mental well-being. For instance, if you are a product-based female entrepreneur, this may be a time to explore different ways to serve your community that do not depend solely on your product. Creating an online community to learn about the various potential uses of your product, as well as providing opportunities for people to connect, along with potential courses to broaden those uses, could be effective ways to continue your support.

“It’s important for entrepreneurs to stay the course while making informed strategic decisions; reinforcing the need for financial partners to step in with tools that provide transparency, working capital solutions, and insights to help entrepreneurs adapt.” Nuno added.

Navigating Economic Uncertainty And Protecting Your Mental Health In 3 Steps

Here are three steps women entrepreneurs can take to stay grounded, strategic, and emotionally well during uncertain times:

First: Name The Stress And Track The Triggers

Financial anxiety often builds silently. Start by acknowledging how stress shows up for you; it could be through overworking, decision fatigue, avoiding financial tasks, or getting trapped in a never-ending news cycle. A helpful practice is to keep a journal. You can track emotional responses to financial events or news during this time while building awareness, which is the first step in regaining clarity and agency.

For instance, if you notice that constant email alerts about the economy spike your anxiety, consider turning off notifications and setting a time to review financial news. The goal is not to disconnect from reality but to filter what is useful from what is overwhelming. Recognizing what activates your stress can help you respond proactively, not reactively.

Second: Build A Moment For Clarity Into Your Business Routine

During this time, it is essential to ensure you have a space to ground yourself and regain clarity for the next step. Whether it is five minutes of journaling or a quiet walk to reset before tackling your inbox, prioritize your mental bandwidth to make stronger financial decisions.

“Build in emotional runway,” says Certified Financial Planner Melissa Cox. “Women often run lean; not just financially, but emotionally. We hold it together for everyone else. But resilience requires rest. I urge women to schedule time to think outside of crisis mode, even 15 minutes a week. The best financial decisions come from clarity, not chaos.”

Third: Adapt With Intention, Not Panic

When costs rise and margins tighten, the pressure to react quickly can feel overwhelming. Take a step back before making any significant decision, especially financial, so that you can evaluate and see through the present and the future consequences and benefits. “Focus on what’s within your control,” Cox suggests. “I encourage clients to take a ‘financial breath-pause’ and separate the noise from the signal. What levers can you actually pull right now? For many, that means tightening up cash flow, rethinking pricing or supply chains, or simply checking in with your customers to understand what they need most.” she added.

Economic uncertainty, whether fueled by tariffs, a slower economy, industry shifts, or other external factors, represents both financial and mental challenges for women entrepreneurs. However, grounding themselves in their mission, creating space for clear decision-making, and turning to their audience to understand how to pivot, innovate, and continue serving them becomes essential.