Small Business and the Trump Tariffs

Last Friday, the Supreme Court ruled that President Donald Trump illegally imposed tariffs on U.S. imports from trading partners. The main partner is China, but also nations such as Canada and Mexico. How have the Trump tariffs collected, an estimated $175 billion, or six times the amount of the unfunded Affordable Care Act enhanced premium tax credit (subsidies) for Americans, hit small businesses based in the U.S.? Shaundell Newsome is a Las Vegas-based small business owner and co-chair of Small Business for America’s Future. The interview below took place via email and phone.

Seth Sandronsky: What’s your take on the recent Supreme Court 6-3 ruling on the constitutionality of the president’s tariffs?

Shaundell Newsome: That was a good start, but the damage done by a year of erratic tariffs won’t disappear overnight. So instead of searching for workarounds to reimpose those same tariffs, we need lawmakers to find a way to pay back small businesses who operate on thin margins.

SS: How have the tariffs impacted the affordability crisis of rising prices on Main St.?

SN: There’s a huge distinction between Main St. and Wall St. The president painted a picture of a thriving economy during the 2026 State of the Union. But the picture looks nothing like what is happening on Main St. Small businesses are caught between rising prices on one side and falling consumer spending on the other side. This is not an accident but a result of poor policy choices.

SS: What are the results of your group’s research on the impacts of tariffs on small businesses?

SN: Small business owners paid those illegal tariffs from their own pockets, and 80 percent of affected businesses viewed them as existential or major threats to their operations. Small businesses need a predictable policy that works on Main St. Forty eight percent of our survey respondents reported an inability to grow as a result of the president’s tariffs, and 42 percent reported rising costs of imported goods and materials.

SS: Talk about small business adaptation strategies in the face of tariffs, a tax on imports that the U.S. Treasury collected. 

SN: Small businesses are resilient. We find a way to adapt, from raising prices if necessary to offering fewer products or services. Small businesses don’t have the profit margins to absorb tariff price-hikes without such adaptations.

SS: What’s your policy recommendation to revitalize mom-and-pop firms after the recent Supreme Court ruling on the president’s tariffs that he enacted illegally and his bid to impose a new global tariff of an estimated 10 percent on America’s trading partners?

SN: Small businesses employ nearly half the American workforce and bring economic vitality to every community in this country. Bringing down the cost of running a small business isn’t just good for owners, it’s an investment in the entire economy. Main St. is ready to work with anyone serious about solving these problems. We’re not asking for special treatment. We’re asking Washington to stop standing in our way.

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