Why Small Businesses Need Tariff Relief

May 2, 2025
 
U.S. Chamber of Commerce
U.S. Chamber Action
Stand Up for Free Enterprise
 
 
 
Helping Small Businesses Get Tariff Relief
Tariffs make it harder for companies to thrive. 
Small businesses are feeling the pinch from tariffs, which are driving up the costs of the imported goods they rely on. With 61.6 million Americans working for small businesses—almost half of the U.S. workforce—they need relief, and fast. 

While new trade deals that expand market access for U.S. companies and benefit American workers are negotiated, the U.S. Chamber has asked the Trump administration to: 
 
  • Grant automatic tariff exclusions for any small business importer.
  • Provide tariff exclusions for all products that cannot be produced in the U.S. or are not readily available.
  • Establish a process to apply for a tariff exclusion if a company can show that tariffs pose a risk to American jobs. 
     
Why it matters: As each day goes by, small businesses are increasingly endangered by higher costs and interrupted supply chains that will cause irreparable harm. 
 

Small business owners are worried about tariffs. At the U.S. Chamber’s Small Business Day on May 1, we heard their frustration and fear: 
 
  • “Tariffs are scary,” said Pallavi Pande, Owner and Founder of DTOCS, which makes disposable dinnerware out of palm leaves. “I manufacture in India, because palm leaves are not something I can find domestically here in the United States. … [Tariffs are] going to make it hard for me to get my products into parties where people use single-use disposables.”
     
  • “We have been diversifying our supply chain, but we are heavily exposed to China,” said Jocelyn Gailliot, Co-Founder and CEO of fashion retailer, Tuckernuck. “You see a lot of our third-party brands that are much smaller. They're the ones that I am most concerned about, because they don't necessarily have the margins or the ability” to adjust their supply chains. 
     
They join the chorus of small businesses speaking out about the costs and uncertainty of tariffs. 
 

Bottom line: “We must work together to avoid a recession and to realize America’s economic potential,” said U.S. Chamber President and CEO Suzanne P. Clark. “We applaud the administration’s efforts to negotiate as many new trade agreements as possible, but these deals take time, and many businesses can’t afford to wait.”

Tell us how tariffs are impacting your business, your workers, and your community. 
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How to Make Electricity More Affordable 
Pro-growth policies will increase supply and keep prices low. 
Building more energy infrastructure could lower electricity prices, making it easier for families and businesses, while bolstering local economic growth. 
 

By the numbers: The average electricity price in the U.S. increased by 2.44% in 2023 and is 22.55% higher than five years ago. The Northeast and California, in particular, have seen significant price increases over the last five years. 
 
  • California: Up 58.45% 
  • New York: Up 36.62% 
  • New England: Up nearly 40% 

Why it matters: State and federal government officials must prioritize pro-growth policies that will increase the supply of electricity and keep prices low. 
 

Be smart: We can maintain a reliable and affordable electricity supply by fixing outdated permitting processes to speed up the building of new renewable, natural gas, and nuclear energy sources, as well as the pipelines and transmission infrastructure needed for them.  
 

Dig deeper: 
 
  • Learn more about electricity prices in your state with this interactive map
Read More
 
 
 
 
ALL BUSINESS IS LOCAL
2025 State of American Business
U.S. Chamber President and CEO Suzanne P. Clark delivers a clear message to policymakers: The decisions made in Washington have real-world impacts on businesses and communities across the country. They must prioritize growth and opportunity for all Americans.
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