Tariffs Have Been Particularly Costly for Global Small Businesses

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Summary:  The Federal Reserve reports that small businesses were less likely to be able to avoid tariff costs during 2025 and are more pessimistic about employment and revenue in 2026. 

Small businesses were "particularly challenged by higher tariffs in 2025," reports the Federal Reserve of New York, drawing on last year's annual Small Business Credit Survey.

Most small businesses in the Federal Reserve survey said they responded to higher costs by increasing prices for consumers. Looking ahead, small business owners expressed "greater pessimism about generating employment and revenues in 2026" due to the tariffs.

Tariffs aren't saving American manufacturing or helping Main Street businesses. They are a burden, and the evidence shows that small employers are particularly vulnerable.