Senate Must Offer Tariff Relief to Small Businesses

“The U.S. Senate should take advantage of an opportunity to deliver urgently needed relief for small businesses by passing three bipartisan resolutions that would eliminate tariffs. Sponsored by U.S. Sen. Tim Kaine (D-Va.) and U.S. Sen. Rand Paul (R-Ky.), S.J. Res. 77 would overturn tariffs on Canadian imports, S.J. Res. 81 would overturn tariffs on Brazilian imports and S.J. Res. 88 would overturn global tariffs. These resolutions would offer significant support to small businesses at a time when the combined costs of tariffs, inflation and healthcare are making it nearly impossible for small firms to grow. 

Passing these resolutions is necessary because small businesses can do very little to avoid the rapidly rising costs that result from tariffs. Due to the thin margins on which many small firms already operate, sweeping tariffs are forcing small businesses to pass their costs on to customers. Larger businesses, on the other hand, are more likely to have flexibility to absorb increased overhead, keeping prices lower and undercutting their smaller competitors. These concerns about tariffs are reflected in Small Business Majority’s research, which found that 60% of small business owners reported that they’ve experienced higher costs for imported materials or goods due to recent tariff increases. Of these businesses, more than half (57%) said their costs have increased 10%-25% and nearly one quarter said their costs have increased by 26% to 50%.

With votes on the three resolutions expected any day, small businesses are counting on their elected officials to take decisive action and to protect America’s entrepreneurs from tariffs that have the potential to put millions of small firms out of business.”