Small business owners across America are telling similar stories. Caught in the crossfire of a global trade war, tariffs are crushing their bottom lines, limiting their growth, and driving up prices for consumers. Their stories need to be heard – and National Taxpayers Union is leading the charge to amplify their voices with The Tariffs Report.
Consider Auratone, a Tennessee-based family business making speakers since 1958. Although its products are assembled in the U.S., some necessary components must be imported. As tariffs drove up those costs, the company faced an unthinkable choice: relocate production abroad or absorb punishing losses. Alex Jacobsen, the founder’s grandson, wants to preserve Auratone’s American legacy, but tariffs may leave him no choice.
Meanwhile Bivo, a Vermont startup selling stainless steel water bottles with a patented nozzle, was forced to slash imports after a tariff hike sent their taxes soaring. Despite placing an order for 30,000 bottles, the company could only afford to import just over 7,600, at a cost of $24,436 in tariffs. Retail partners, spooked by the same volatility, have pulled back too.
Even businesses sourcing locally aren’t immune. One of the finest ice cream shops in the country, Molly Moon’s Homemade Ice Cream in Seattle, buys 90% of its ingredients from the Pacific Northwest, but still relies on certain imported ingredients like chocolate, vanilla, and coconut.
The rising costs caused by tariffs put even this sustainable, community-oriented business model at risk. The owner predicts 50% of her profits will vanish this year because of tariffs.
Their stories are why National Taxpayers Union is launching The Tariffs Report, a new resource documenting the real-world impact of tariffs and trade uncertainty on small businesses, entrepreneurs, and workers.
These are not isolated cases. A recent survey found that over 80% of U.S. small businesses expect to raise prices because of tariffs. Nearly a third say they may need to lay off workers. Meanwhile, the Yale Budget Lab estimates tariffs cost the average household more than $2,500 per year.
At NTU, we’ve long advocated for free trade and fairer policies. We want the U.S. to come out ahead. That’s why it’s important to know that behind every tariff policy are real people: owners forced to move production overseas, startups delaying growth, and family-run businesses facing impossible costs.
The Tariffs Report will share their stories and provide data that policymakers and the public need to see.
Supporters of tariffs argue they level the playing field. But evidence from the U.S. International Trade Commission found U.S. importers bore the brunt of tariffs “almost entirely,” with prices rising in direct proportion. These policies create uncertainty and weaken American competitiveness.
While the Trump Administration has prioritized American industry and stronger trade deals, the reality is that tariffs have caused unintended harm to small businesses.
We agree with the Trump Administration that strong trade deals are important. But tariffs are a blunt tool, and as The Tariffs Report will show, small businesses are suffering across geographies and industries.
Instead, we support moving toward zero tariffs, zero non-tariff barriers, and zero subsidies; principles that foster growth and fairness for America’s small businesses, consumers, and our nation’s future.
Bryan Riley is Director of the Free Trade Initiative at National Taxpayers Union.
