President Donald Trump and his allies have repeatedly claimed that his tariffs are paid exclusively by foreign countries exporting goods into the US, but the reality remains that the costs are paid by the companies importing goods into the country and are most often passed down to consumers. Now, a new report from Fortune has found the full impact on small businesses, with tariffs siphoning thousands of dollars out of them every month.
Fortune reported the findings of the Center for American Progress (CAP), which it describes as a "left-wing think tank," from a report published on Dec. 17. According to CAP, between April, when Trump enacted his sweeping "Liberation Day" tariffs on nearly every country, and September, roughly 236,000 small businesses in the US paid, on average, $151,000 more in import duties compared to the same period of time in 2024. This equates to a little over $25,000 per month.
“The Trump administration’s broad, costly, and frequently shifting policies threaten to undermine one of the strongest engines of the American economy,” Michael Negron, an analyst with CAP, said in a statement about their findings. “A season of opportunity for small businesses has turned into one of uncertainty.”
The costs have still been felt acutely even at the smallest of these businesses. According to the report, "mom-and-pop" businesses employing 50 or fewer people paid an extra $86,000 in tariffs from April to September, a little over $14,000 a month. CAP called Trump's tariffs a "costly lump of coal" for these businesses during what is typically the financially fruitful holiday season.
Things are not looking any better in the immediate future as well, dumping cold water on the Trump administration's claims that 2026 will see a significant economic upswing for all Americans.
"The outlook for the immediate future is equally grim," Fortune explained. "CAP projects that if current monthly costs persist, the typical small business will face a tariff bill exceeding $500,000 in 2026, potentially resulting in additional layoffs, bankruptcies, and delayed investments."
Small businesses will also be forced to contend with the end of enhanced Affordable Care Act subsidies in 2026, threatening to "double premiums for millions of entrepreneurs and small-business employees" seeking to provide themselves with healthcare, increasing the risks for layoffs and stagnant growth.