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Small business owners are urgently seeking relief from new U.S. tariffs on foreign goods, expressing concern that the increased import taxes on key trading partners pose a significant threat to their operations and livelihoods.
Senator Ed Markey, who serves as the ranking member of the U.S. Senate Committee on Small Business and Entrepreneurship, addressed this issue in a letter to the Small Business Administration (SBA), advocating for exemptions for small businesses from the tariffs implemented by the Trump administration. He characterized these tariffs as being “recklessly imposed.”
Markey highlighted that while the Trump administration provided protections to large corporations like Apple and Google against certain trade policies, small businesses have not received the same considerations. Earlier this month, the U.S. explicitly exempted high-tech products like smartphones and computers from the most recent tariffs, benefiting major tech manufacturers.
“Small businesses represent the backbone of the American economy, yet they operate with very limited profit margins. As such, they are particularly susceptible to the increasing costs related to the Trump Tariffs. Unlike larger companies, these businesses lack the financial buffer to absorb sudden cost increases or to adapt to unexpected changes in already complicated supply chains,” Markey stated.
Since the Trump administration’s tariffs have escalated, duties on Chinese imports have surged to as high as 145%, while products from many other nations face a 10% tariff. Recently, “reciprocal tariffs” on numerous trading partners were announced, although their implementation has been paused for 90 days.
Officials from the Trump administration have justified these tariffs by claiming they aim to safeguard the domestic manufacturing sector, stimulate economic growth through increased production within the U.S., and generate substantial revenue for the federal government.
The White House has not yet provided a response to requests for comment regarding the situation.
Isabel Guzman, the former head of the SBA under President Biden and the current chair of the Global Risk Advisory Council at the Global Situation Room, explained to CBS News that small businesses are facing tariff-induced difficulties without the financial reserves that larger companies typically possess. They also often lack the diverse supply chains that bigger businesses can rely on.
“As a result, the impact of these tariffs will be more pronounced for small businesses. The immediate consequences are likely to be experienced more acutely by them,” Guzman noted.
Many small business owners have reported already feeling the repercussions of these tariffs. Kristin Bear, the founder of Kilo Brava, a lingerie company based in the U.S. that manufactures its products in China, mentioned to CBS MoneyWatch that the heightened tariffs could force her to forfeit an entire season’s worth of orders, representing about $500,000.
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