The tariffs are not going anywhere anytime soon. It is important to recognize that there needs to be targeted relief for small businesses who are getting harmed by tariffs and to provide a way for them to petition the government for some relief. There also needs to be targeted relief for products that consumers buy every week like groceries.
One thing is clear – tariffs are taxes. The Congressional Budget Office (CBO) estimates that “changes in tariffs will reduce the size of the U.S. economy—in part because of tariffs imposed by other countries in response to the increases in U.S. tariffs.” The impact of higher taxes on consumers, and the expected reciprocal treatment U.S. exports will receive, will shrink the U.S. economy.
A long-term tariff tax hike will negate the positive impact of keeping personal income taxes low with President Trump’s Budget Reconciliation measure. Bryan Riley of the National Taxpayers Union writes, “that measured in real dollars, this is the biggest tax increase since World War II ended” and will be “equal to a $158 per month tax on U.S. households.” One result is that “by 2035, the level of U.S. real GDP will be 0.6% lower than it was in CBO’s January 2025 forecast.” Riley concludes that “tariffs are a costly way to raise revenue” because “the federal government should address budget deficits by controlling spending and adopting pro-growth economic policies, not by imposing tariffs or other policies that will make Americans poorer.” Riley is spot on.
The U.S. economy is driven by millions of small businesses who are being hurt in the trade war. Small businesses contribute to over half of the total job creation from 2013 to 2023. Over 30 million small businesses employ over 60 million Americans. The Wall Street Journal reported on May 11, 2025, “around the country, small businesses that import goods made in China are taking actions—big and small—to try to outlast the tariffs on items from that country. But many are worried that their companies won’t survive.” The story quoted Scott Anderson who owns a company that relies on Chinese manufacturers to make its products, who said, “nobody in power seems to care about small business.” He lamented that he is likely to sell what he has and shut down his company.
Given that tariffs will persist indefinitely, small businesses need a means to petition for relief. The Chamber of Commerce wrote to the Trump Administration for automatic tariff exclusions for any small business or importer demonstrating that a tariff threatens their employment of American workers. They seek a process for companies to apply for exclusions on products that cannot be produced in the U.S. or are not readily available. This approach could help prevent tariffs from unintentionally reducing the U.S. workforce. Small businesses reliant on imports should not suffer due to tariffs.
Consumers must be protected in the current trade war. Grocery prices and access to healthy food are crucial for American families. Food & Wine reported on May 9, 2025, “tariffs are driving food prices up: A Yale Budget Lab report finds that new U.S. tariffs on imports from countries like China, Mexico, and Canada will raise grocery prices — especially for fresh produce, which could jump over 5%.” They add, “without changes in shopping habits, the average household may lose up to $4,900 in 2025 due to trade-driven price hikes, though adjustments like buying in bulk or switching brands could reduce that to about $2,600.” Low-income households will be impacted the most.
With a Trump Administration wanting people to Make America Healthy Again (MAHA), a spike in the prices of frozen vegetables and fruits will either cause consumers to buy less healthy foods or send them to cheap processed foods. One can’t believe that Guatemalan and Costa Rican bananas should be a casualty of a trade war. If you like your melons, pineapples, and mangoes, expect those prices to go sky high. Also, a trade war with Spain, Italy, and Greece will hike the price of olive oil through the roof.
President Trump has always been a strong advocate for American small businesses. The President's administration must remember this when making future economic decisions—decisions that safeguard these entrepreneurs who embody the American spirit of “yes, we can.”
With midterm elections coming soon, it makes sense for targeted relief for small businesses and some exemptions for grocery store items that will enrage consumers. Small business owners and workers will sour on the Trump Administration if tariffs shutter their business and put them out of work. Same with consumers if they see a spike their weekly expenditure at the local grocery store.
Leif Larson is a media consultant and media strategist for multiple political candidates and issue campaigns across the country.
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