California small businesses struggle with rising costs and reduced sales

8 articles · Updated · CalMatters · Apr 29

Gas prices in California have surged to $5.55 per gallon, and some retailers report sales drops of up to 50% in 2025, with staff reductions and production cuts.
Tariffs, war in Iran, and fuel hikes have forced businesses to raise prices, cut jobs, and shift supply chains, while shipping surcharges from Amazon, USPS, UPS, and FedEx add further pressure.
Uncertainty from ongoing policy changes and global disruptions is slowing imports and eroding consumer confidence, threatening the survival of small businesses that create 99% of California's net new jobs.

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