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Tariffs

Small Business RELIEF Act Introduced to Exempt Businesses from Global Baseline and Reciprocal Tariffs

Strategic Insights

— 2 min read

Senators Edward J. Markey (D-Mass.), Chuck Schumer (D-N.Y.), and 9 colleagues introduced the Small Business RELIEF Act to exempt small businesses from the global baseline and reciprocal tariffs imposed by the Trump administration. The bill would provide refunds to small businesses that were forced to pay the tariffs, which have been deemed illegal by the U.S. Court of Appeals for the Federal Circuit.

The legislation aims to help small businesses, which are the backbone of the American economy, from the devastating economic wound of the Trump tariffs. Small businesses make up more than 99% of all U.S. companies, employ nearly half of the private-sector workforce, and contribute more than 40% of GDP. However, unlike their larger counterparts, they often lack the financial cushion and in-house resources to absorb sudden policy shifts.

Key Takeaways:

  • The Small Business RELIEF Act would exempt small businesses from the global baseline and reciprocal tariffs imposed by the Trump administration.
  • The bill would require the President to give refunds to small businesses that were forced to pay the tariffs within 90 days of enactment.
  • The legislation aims to help small businesses, which are the backbone of the American economy, from the devastating economic wound of the Trump tariffs.
  • Small businesses make up more than 99% of all U.S. companies, employ nearly half of the private-sector workforce, and contribute more than 40% of GDP.
  • The bill has the support of various organizations, including the Main Street Alliance, the National Small Business Association (NSBA), Small Business for America's Future, and CAMEO Network.
  • The Small Business RELIEF Act would provide essential relief that keeps innovation alive and Main Street thriving.
  • Tariffs have caused significant pain for small businesses, with 60% experiencing higher operating costs due to tariffs as per Small Business Majority's most recent polling.
  • Small businesses are deriving the smallest margins and greatest vulnerability from rising costs, and are being directly hit by tariffs.

Statistics:

  • 99% of all U.S. companies are small businesses.
  • Small businesses employ nearly half of the private-sector workforce.
  • Small businesses contribute more than 40% of GDP.
  • 60% of small businesses are experiencing higher operating costs due to tariffs.
  • 26% of businesses surveyed said they import goods directly.
  • Almost half said they buy from American suppliers that import from other countries.
  • Cost increases have led small businesses to take a range of drastic actions, including raising prices and pausing expansion plans.

Sources:

  • Ranking Member Edward J. Markey (D-Mass.)
  • Democratic Leader Chuck Schumer (D-N.Y.)
  • Senators Richard Blumenthal (D-Conn.), Mazie Hirono (D-Hawaii), Angela Alsobrooks (D-Md.), Mark Warner (D-Va.), John Hickenlooper (D-Colo.), Mark Kelly (D-Ariz.), Kirsten Gillibrand (D-N.Y.), and Martin Heinrich (D-N.M.)
  • Main Street Alliance
  • National Small Business Association (NSBA)
  • Small Business for America's Future
  • CAMEO Network
  • Small Business Majority
  • Women Impacting Public Policy (WIPP)
  • Letter to Small Business Administration (SBA) Administrator Kelly Loeffler, Secretary of Commerce Howard Lutnick, U.S. Trade Representative Jamieson Greer, and Chair of the Council of Economic Advisers (CEA) Stephen Miran, dated August 2025
  • Remarks by Ranking Member Markey on the Small Business Liberation Act on the Senate floor in August 2025
  • Passage of the Small Business Liberation Act on the Senate floor on August 2025

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