Tariffs Create Uncertainty and Financial Strain

Tom Sullivan, U.S. Chamber Senior Vice President for Small Business Policy, joined America’s Small Business Network this week to discuss how tariffs are hindering small business growth.
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• “We hear one word over and over and over again, and that is uncertainty,” he said.

Why it matters: Of the 230,000 U.S. importers, 97% are small businesses. For many of them, a tariff increase can significantly impact their bottom line.
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• With tight profit margins and limited financial flexibility, they may have to raise prices, absorb extra costs, or cut back on inventory and operations in their communities.

Sullivan said the U.S. Chamber was receiving calls from small businesses saying, “We need the tariffs to go down. Please help us navigate through this time.”
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Small businesses across the country have been telling us how tariffs are hurting their ability to be competitive and stay in business:
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• “For 33 years, Bike Friday has hand-built bicycles in our factory in Eugene, Oregon,” said Hanna Scholz, president of the company. “We must import some things. Our bikes are only possible through a global supply chain—some bike parts have never been made in the USA, ever... Now we have lost 30-40% of our customers, even our USA customer orders are down out of concern for the economy. Our costs are up. Tariffs could kill us and our industry!”

What we’re doing: The U.S. Chamber is calling for immediate tariff relief for small businesses and to provide tariff exclusions for products that cannot be made in the U.S. or threaten American jobs.