Damage from the range of Presidential tariffs runs far deeper than the duties themselves. To absorb the added costs, 85% of respondents cut their profit margins and 83% raised prices, according to We Pay the Tariffs’ Small Business Survey Report.
“What this report makes clear is that small businesses have already absorbed enormous damage from these tariffs, taking on debt, draining savings, and cutting jobs just to survive,” says Dan Anthony, executive director of We Pay the Tariffs. “Piling new tariffs on top of that won't bring anything back. It will only deepen the debt, extend the uncertainty, and push more of these businesses toward the edge.”
Key takeaways:
· Nearly half of small businesses took on new debt, and 40% tapped into personal savings such as retirement funds, a figure that climbed to 55% among businesses with five or fewer employees.
· Almost three in 10 laid off workers, and more than half delayed or canceled planned investments and new product development.
· When asked how their business had fared over the past year, 57% said it had declined, and four in five of those owners named tariffs as a major factor.
· The most common planned use of a refund was paying down debt, cited by 53% of respondents, followed by rebuilding depleted inventory at 40%. More than a quarter said a refund would go toward simply avoiding closure. Even owners hoping to hire, invest, or lower prices said they were holding back, wary that the next round of tariffs could wipe out any gains before they arrive.
· 93% of respondents expect new tariffs under authorities like Section 122 and Section 301, and 80% called refunds critical or very important to their future.
· Just 3% said they found a U.S. supplier that could meet their product specifications and budget.
