Free Trade

Trump's Tariffs Have Been Particularly Costly for Small Businesses

The Federal Reserve reports that small businesses were less likely to be able to avoid tariff costs during 2025 and are more pessimistic about employment and revenue in 2026.

Eric Boehm | 7.13.2026 11:40 AM

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Not long after announcing the sweeping "Liberation Day" tariffs in April 2025, President Donald Trump claimed the taxes on imports would be good news for American small businesses.

"I'm proud to be the president for the workers, not the outsourcers—the president who stands up for Main Street, not Wall Street," Trump said in a speech to the National Republican Congressional Committee.

A recent survey of small businesses by the Federal Reserve tells a very different story.

Small businesses were "particularly challenged by higher tariffs in 2025," reports the Federal Reserve of New York,........

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