Small Businesses Demand Relief from Trump-Era Tariffs

Small business owners across the United States are pleading for relief from steep new tariffs on imported goods, warning that the higher costs are jeopardizing their survival.

Senator Ed Markey, the ranking member of the Senate Committee on Small Business and Entrepreneurship, formally raised the alarm on Friday in a letter to the Small Business Administration (SBA).

Markey criticized the tariffs, imposed under the Trump administration, as “recklessly applied” and called for exemptions to shield smaller enterprises from their worst impacts.

Markey also accused the administration of favoring corporate giants like Apple and Google, which have benefited from exemptions for key products such as smartphones and computers.

Those exemptions, he noted, stand in contrast to the burdens being placed on small businesses that lack the financial resilience of larger corporations.

“Small businesses are the lifeblood of the American economy,” Markey wrote. “But because they operate on razor-thin margins, they are uniquely vulnerable to the rising costs caused by the Trump Tariffs.

These businesses simply do not have the financial cushion to absorb price shocks or the resources to navigate sudden changes in an already complex supply chain.”

Since taking office, former President Trump significantly escalated tariffs on Chinese imports—raising some rates to as high as 145%—while levying a standard 10% tariff on products from many other countries.

Although a 90-day pause was recently announced for some reciprocal tariffs, most duties remain in place.

The Trump administration has defended its tariff strategy, arguing it protects U.S. manufacturing, promotes domestic job growth, and increases federal revenue. The White House did not immediately respond to requests for comment.

Isabel Guzman, former SBA Administrator under President Biden and now chair of the Global Situation Room’s Global Risk Advisory Council, told CBS News that small businesses are particularly exposed.

“They face tariff challenges without the cash reserves larger businesses have, and without the supply chain diversity larger businesses can rely on,” Guzman said. “The short-term pain is going to be much harder felt.”

For some entrepreneurs, the impact is already tangible. Kristin Bear, founder of lingerie brand Kilo Brava, which manufactures in China, told CBS MoneyWatch that the tariff hikes could force her to scrap an entire season’s worth of production—an estimated $500,000 in losses.