New Tariffs, Shifting Deadlines, Threaten Small Businesses

“The latest round of tariffs has infused small businesses with a renewed sense of dread. The months-long confusion and uncertainty created by unpredictable tariff implementation and shifting goalposts makes it nearly impossible for any small business to plan for the future. After all, there is virtually nothing small businesses can do to avoid tariffs in the short term. Even products dubbed ‘made in America’ are often assembled from imported components. 

Beyond the uncertainty, tariffs exacerbate the existing competitive imbalance between small firms and large corporations. Small businesses tend to operate on very thin margins, meaning a tariff of even 10% can eliminate their entire profit unless they respond by raising prices. Meanwhile, a megacorporation with strong negotiating power and the ability to absorb cost increases can easily undercut its smaller competitors. Given these realities, small businesses are not supportive of tariffs. In fact, Small Business Majority’s research found 53% of small businesses are concerned about tariffs negatively impacting their business and 77% are concerned about announced tariffs negatively impacting the U.S. economy as a whole. 

The timing of the latest tariffs could not be worse. Small businesses are already struggling with inflation and the potential loss of health insurance after the One Big Beautiful Bill Act (OBBBA) cut Medicaid funding by more than $1 trillion. The cost of small business loans could also increase in the future after OBBBA added at least $3.3 trillion to the national deficit. 

The bottom line is that small businesses thrive when market conditions are stable. Tariffs do the opposite.”