'Pandemic-sized shock': Small business owners bemoan Trump trade agenda

President Donald Trump's tariff-based trade policy "could have a pandemic-sized shock on U.S. small businesses," according to new reporting in Politico.

"Even with Trump announcing on Wednesday a 90-day pause in massive reciprocal tariffs, imports from China, on which many small businesses rely, will be subject to duties of up to 125 percent," wrote Politico's Katherine Hapgood. "Imports from the rest of the world are also subject to a 10 percent tariff, and sectoral tariffs, such as an additional 25 percent on steel and aluminum imports, are still in place."

The article goes on to say that the Trump administration's mixed messages on tariffs — "Trump says he will not pause tariffs," "Trump embraces 'tailored' tariff deals" — has created "troubling" uncertainty among small business owners.

“The Trump administration is sending every signal that it does not care about the future of America’s small businesses,” John Arensmeyer, CEO and founder of Small Business Majority, told Politico. “We sincerely hope that is not true and that the administration’s approach to small businesses shifts dramatically and quickly. If not, the Trump administration will not need a small business policy because there will be few businesses left to support.”

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In addition, Trump's plans to slash employees and programs from the National Small Business Association threatens vital resources for small business owners, what Politico called "lifelines that played a key role in keeping some businesses afloat during past crises, such as the Covid-19 pandemic."

Molly Day, the SBA’s vice president of public affairs, told Hapgood, “Whether or not you support tariffs, or whether or not you think certain offices should be cut, I think overall, any kind of economic turbulence is uniquely burdensome for small businesses."

The article also quoted Eric Blackledge, chair of the National Small Business Network, who claimed staff reductions and reduced services would have “ongoing impacts” as more small business owners require SBA assistance.

“But I don’t think we really have yet seen just how bad it’s going to be,” Blackledge said.

Read the Politico article here.