Small Biz Owners Cry Foul over Trump's Tariff Plans: "They're Sinking!"
Immediate Tariff Relief Urged Urgently by Chamber of Commerce for Small Businesses
Forbes Media chairman, Steve Forbes, breaks down why President Donald Trump's tariff announcements could be a game changer for American businesses, particularly small ones, on 'The Bottom Line.'
The U.S. Chamber of Commerce has penned a letter to the Trump administration, expressing concerns that small businesses might struggle to stay afloat with potential tariffs on goods they need to survive.
In a letter sent to Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross, and U.S. Trade Representative Robert Lighthizer, the Chamber has voiced its worries about the financial strain small businesses may face due to tariffs.
The letter, penned Thursday, highlights the need for small businesses to be exempt from tariffs, as well as other relief measures to prevent them from drowning in added costs.
The letter expresses appreciation for the administration's attempts to negotiate zero-for-zero reciprocal tariffs with other nations and remove non-tariff barriers to trade, as such agreements would boost U.S. exports, support more jobs, and increase wages.
"However, even if these agreements are reached quickly, many small businesses will still suffer significant harm," the letter cautions, explaining the urgency for immediate relief. Small businesses may not have the financial means or reserves to endure the costs of imported goods now carrying heavier tariffs.
*SMALL BUSINESS OWNERS SPEAK OUT: "IT'S UNSUSTAINABLE!"*
Resources may be stretched thin for small businesses struggling to foot the bill for imported goods needed to survive as viable entities, according to the Chamber of Commerce. (Mark Felix/Bloomberg via Getty Images)
The Chamber has proposed three actions for the Trump administration to take immediately, using its authority, to assist small businesses and potentially avert a recession:
- Automatic Tariff Exclusions: Recognizing that small businesses lack the financial leeway and flexibility to sustain increased tariffs, nor do they have the ability to rapidly adjust their supply chains, the Chamber asks for an automatic tariff exclusion specifically for small business importers.
- Tariff Exclusions for Unsourcable Products: The Chamber requests automatic tariff exclusions for goods that cannot be sourced within the U.S. or are not readily available from domestic sources. This measure is aimed at shielding businesses and consumers from the negative effects of increased costs associated with imported goods—including coffee, bananas, cocoa, certain minerals, and many other industrial inputs critical to American manufacturers.
- Exclusion Process Based on Job Losses: The Chamber calls for an expedited process for businesses to obtain exclusions on tariffs when the labor market is at risk due to the tariff costs. The Chamber emphasizes that over 40 million American jobs rely on trade, making it vital to safeguard and foster economic growth and prosperity.
*THE LITTLE SHOP ANNOUNCES CLOSURE - ALL BLAMED ON TARIFFS AND TRUMP'S "CHOICE"*
U.S. Chamber of Commerce CEO and President Suzanne Clark sent the letter to President Donald Trump's Cabinet officials. (David Kawai/Bloomberg via Getty Images)
According to the Chamber, their objective is not to oppose tariffs but to seek relief for small businesses grappling with added costs and supply chain disruptions. Suzanne Clark, President and CEO of the U.S. Chamber of Commerce, stated, "We support many of the President's policy goals, including eliminating unfair trade and non-trade barriers, and driving American investment. At the same time, we have heard from a historic number of small businesses who have made it clear: they need immediate relief from tariffs."
White House Deputy Chief of Staff for Policy Stephen Miller was asked about the Chamber of Commerce's letter during a press briefing on Thursday. Miller responded, claiming that relief for small businesses would come in the form of an impending tax cut package from Congress.
"The relief for small businesses will be the largest tax cut in American history," Miller stated, detailing how the package will offer 100% expensing for investments in the U.S. He also criticized Democrats for opposing the bill.
"This will be the most pro-small business tax bill in American history," Miller added, emphasizing that as companies are able to reshore their supply chains, they'll simultaneously benefit from little to no tariffs.
Miller was later asked if his response meant there would be no interim tariff relief for small businesses. "It's a yes on tax relief for small businesses," Miller replied, reiterating that businesses only pay tariffs on outsourced products.
- Small businesses might struggle to maintain their financial capital due to increased taxes from tariffs, forcing some to shut down, as shown by the closure of 'The Little Shop.'
- The U.S. Chamber of Commerce has urged the Trump administration to provide immediate relief for small businesses, suggesting three actions: automatic tariff exclusions, tariff exclusions for unsourcable products, and an expedited process for job-loss exclusions.
- Forbes Media chairman, Steve Forbes, believes President Donald Trump's tariff announcements could significantly impact American businesses, particularly small ones, by potentially sinking their future.
- The ongoing political debates surrounding tariffs and trade agreements have a direct impact on the overall health of the economy and the finance sector, with small businesses often bearing a disproportionate burden.
