Chamber of Commerce asks Trump administration for tariff exclusions to “stave off a recession”

Small Business Month is here, but the looming threat of the Trump administration’s trade policy has the Chamber of Commerce on edge. The recently imposed tariffs are causing concern for America’s Main Street, with small businesses at risk of serious damage. In a letter addressed to Treasury Secretary Scott Bessent, Suzanne Clark, president and CEO of the Chamber of Commerce, is advocating for an “automatic exclusion” from new tariffs for U.S. small businesses that rely on imported goods. Clark emphasizes that small businesses lack the margin and capital reserves to withstand a tariff increase, urging immediate action to protect them and prevent a recession.

The impact of the Trump administration’s tariff policies is already evident, with economists warning of slowed growth and increased chances of a recession in the next 12 months. While the International Monetary Fund remains optimistic about the U.S. economy, Clark warns that tariffs could cause irreparable harm to small businesses if trade deals are not swiftly negotiated. With tariffs ranging from 10% for most countries to a staggering 145% for Chinese products, small businesses are left vulnerable in an uncertain economic climate.

President Trump recently hinted at trade deals being reached in the near future, offering a glimmer of hope for small businesses grappling with the uncertainty of tariffs. However, the ongoing fluctuations in tariffs are forcing small business owners to make tough decisions about their operations, with some facing the grim possibility of shutting down permanently.

If tariffs persist, small business owners may have no choice but to pass on the increased costs to customers through higher prices, mirroring the actions of corporate giants like Amazon, Temu, and Shein. Unlike large corporations, small businesses operate on slim margins, leaving them more susceptible to financial strain. A survey by TD Bank revealed that 43% of small business owners believe their companies would not survive a revenue shortfall lasting three to four months.

Senator Ed Markey, a vocal advocate for small businesses, has called on the Trump administration to grant tariff exemptions to Main Street enterprises. Highlighting the financial vulnerability of small businesses, Markey emphasizes the importance of safeguarding them from price shocks and supply chain disruptions.

As Small Business Month unfolds, the Chamber of Commerce’s plea for tariff relief resonates with small business owners nationwide. The future of America’s Main Street hangs in the balance, as policymakers and industry leaders navigate the turbulent waters of trade policy. It is crucial for the administration to prioritize the needs of small businesses and provide them with the support necessary to weather the storm of tariffs and economic uncertainty.