Trump Tariffs Expected to Cost US Small Businesses $202 Billion

Despite recent improvements in sentiment among U.S. small businesses, many are facing significant challenges due to President Donald Trump's tariffs and associated trade policies. Small businesses, which account for over half of the nation's job growth, are disproportionately affected by the new country-specific duties ranging from 10% to 50%, with the U.S. Chamber of Commerce estimating an annual tariff bill of $202 billion for about 236,000 small importers. These firms often lack the compliance and forecasting resources of larger corporations, making it difficult to adapt quickly to the complex and unpredictable tariff framework. Federal Reserve Bank of Atlanta President Raphael Bostic highlighted that small businesses are experiencing acute stress from tariffs, which will likely lead them to raise prices, ultimately impacting consumers. While larger firms may absorb some costs, economists warn that consumers could bear up to 67% of tariff expenses later this year as small businesses pass along higher import costs. The uncertainty created by shifting tariff policies is also constraining hiring and investment decisions within the small business community.