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Concealed Republican > Blog > News > Exempt small businesses from tariffs
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Exempt small businesses from tariffs

Jim Taft
Last updated: August 4, 2025 3:14 pm
By Jim Taft 14 Min Read
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Exempt small businesses from tariffs
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President Donald Trump just keeps proving his critics wrong.

This week, he announced a trade deal with the European Union that will bring in $1.35 trillion in new investment just days after securing $550 billion from Japan. The U.S. Treasury has pulled in a record-breaking $150 billion in tariff revenue this year. New GDP figures show the economy growing faster than inflation.

A rebate, carve-out, or full exemption would show Trump responds to market realities with precision.

Trump has reason to celebrate. But he also knows tariffs can hurt. In February, he warned about the pain tariffs might cause consumers and businesses. More recently, he backed Missouri Republican Sen. Josh Hawley’s proposal to send at least $600 in tariff rebate checks to working-class Americans.

That same logic should apply to the people who sign their paychecks: small business owners.

Since the government-imposed COVID restrictions, small businesses have faced brutal headwinds. The National Federation of Independent Business reports weak job creation plans. Bank of America says hiring costs are down but entrepreneurs are leaning harder on credit cards just to stay afloat due to tighter markets.

To ease the burden, the U.S. Chamber of Commerce has urged the Trump administration to create an automatic exemption from new tariffs for small businesses. These companies don’t have the cash reserves or supply chain flexibility to absorb cost hikes. They can’t just retool overnight. The Chamber also called for exemptions for any business that proves tariffs would threaten American jobs or that imports goods not produced domestically — like coffee or bananas.

That pitch should resonate with Republicans. America’s 34.8 million small businesses provide nearly half of all U.S. jobs and created 70% of new ones between 2019 and 2024. They make up 98% of all manufacturers, with payrolls topping $278 billion.

And they lean Republican. Last fall, small business owners favored Trump’s economic policies over Kamala Harris’ by 32 points. Five of the top 20 importing states — Michigan, Georgia, Pennsylvania, North Carolina, and Wisconsin — are swing states where small businesses are watching closely.

Democrats know it, too. They’ve already started highlighting tariff-related struggles in their appeals to Main Street voters. According to the FedEx Small Business Trade Index, one-third of all imports and exports come from small businesses. Two-thirds of small and midsize business leaders say imports are vital to their domestic operations. The National Retail Federation recently flagged the impact of tariffs on the nation’s 15.5 million retail workers.

Trump understands something his critics don’t: The economy depends on balance — between tariffs, taxes, incentives, and regulation. Targeted relief for small businesses fits perfectly with his broader economic vision.

It complements the SBA’s Made in America Manufacturing Initiative, which cut $100 billion in red tape, and the One Big Beautiful Bill Act’s tax reforms that let domestic producers write off depreciation and R&D costs.

RELATED: Trump says he’s considering ‘a little rebate’ for Americans from tariff revenue

  Photo by JIM WATSON/AFP via Getty Images

Sure, Trump could fold a small business rebate into Hawley’s legislation. But exemptions work faster — and speed matters when you’re operating on razor-thin margins. That’s why Chamber of Commerce CEO Suzanne Clark is right: Small businesses need relief now, not months from now — if and when Congress acts.

A rebate, carve-out, or full exemption would show Trump responds to market realities with precision. It would give small businesses breathing room to shift toward domestic suppliers. And it would help Republicans tie a policy win to the pro-growth momentum already under way.

Foreign onshoring, U.S. reshoring, and renewed consumer confidence are already reshaping the economy. Strategic relief for small businesses could help seal the deal — and give Republicans even more to smile about in 2025.



Read the full article here

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