Court Striking Down Tariffs is a Victory for Small Businesses

“The U.S. Court of International Trade’s decision to strike down recently imposed tariffs is welcome news for America’s small businesses. We’ve heard from dozens of small business owners who told us that widespread tariffs on goods imported from a wide range of countries have left them with few options beyond raising their prices or shutting down. Due to the thin margins on which many small firms operate, sweeping tariffs would force most 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. We’ve also heard from small business owners who would be happy to purchase products made in the United States when possible. The reality is that they simply cannot either because those products are too expensive or because the industries that supply what they need do not operate within the United States. These concerns about tariffs are reflected in Small Business Majority’s research, which found 53% of small businesses are concerned about tariffs negatively impacting their business while 77% are concerned about tariffs negatively impacting the U.S. economy as a whole. 

Small business fears about tariffs should not be ignored. Before imposing any new laws that could impact small firms, policymakers should carefully study the potential impacts of those policies and make decisions driven by data. Our nation should not move forward with tariffs or any other policies if it’s determined that those policies do not offer a clear and significant return on investment for America’s entrepreneurs.”