New Senate Bill Could Cut Tariff Costs for Small Businesses
Published: May 11th, 2025.
National Small Business Week, held from May 4 through 10, is usually a time to spotlight innovation, celebrate local entrepreneurship, and acknowledge small businesses' vital role in the U.S. economy. But this year, instead of just hosting ceremonies and success stories, the week unfolded alongside a storm of financial stress for many business owners, and tariffs took center stage.
As celebrations took place, so did a flurry of real-world updates from small business owners sharing how complicated things have become. Reports of massive import fees, supply chain delays, and ballooning material costs were hard to miss. Business owners posted screenshots of import bills and delivery invoices on social media, highlighting charges that sometimes exceeded the goods' value. Some reported paying thousands in duties for shipments worth less than half that amount.
For many, this wasn’t just about one lousy invoice but about staying afloat. Owners said they were forced to raise prices, delay new product launches, or completely restructure operations. A few admitted they might soon close shop. Across different industries, the pattern was clear: small businesses are getting hit hard and fast.
The tariffs in question stem from the new administration’s ongoing trade policy, which currently imposes a baseline 10% tariff on most imports and up to 145% on goods from China. While a 90-day pause was announced in early April, many say the damage is already being done. Even if tariff rates were to be reduced, the unpredictability has already disrupted long-term planning.
Amid this backdrop, Senate Democrats introduced new legislation during Small Business Week: the Small Business Liberation Act. Sponsored by Senators Ed Markey, Chuck Schumer, and Mazie Hirono, the bill aims to exempt small businesses from the current tariff system.
Speaking at a press conference alongside affected owners, Schumer described the current trade policy as “economic arson on Main Street,” saying tariffs force businesses to raise prices, cut staff, or shut down. Hirono emphasized that smaller firms are particularly vulnerable because they’re less able to absorb increased costs or access alternative suppliers.
The bill has yet to gain bipartisan support, but its sponsors are calling on Republicans to act, arguing that small businesses can’t afford to wait. As of early May, new data showed small business employment is down nearly 3% since January, with over 366,000 jobs lost. Supporters of the bill say exempting these companies could help stabilize employment and reduce economic pressure before long-term damage is done.
The debate isn’t settled. Some lawmakers maintain that tariffs are essential to rebuilding domestic industries and reducing reliance on overseas manufacturing. But critics argue that small businesses are being unfairly caught in the middle, too small to navigate the costs but too significant to ignore.
Still, despite the uncertainty, many small business owners continue to speak out and advocate for relief. Some are rethinking their supply chains, others are connecting with legislators, and many are simply trying to adapt and hang on.
As National Small Business Week wraps up, there’s hope that this moment will push lawmakers to take action. For the small business community, it’s not just about recognition — it’s about survival. And if the momentum behind this new legislation holds, next year’s celebration could come with more than just applause — it could come with real support.