Small businesses, which make up 98% of retailers and support more than 13 million American jobs, are particularly vulnerable. Owning a small business embodies the ideals of freedom and opportunity that are central to the American Dream. However, tariffs jeopardize the very foundation of these ideals.
How tariffs impact small businesses
- Tariffs are taxes on U.S. importers, not foreign nations. U.S. job creators — including retailers, restaurants, manufacturers and other Main Street businesses — bear the burden of tariffs.
- Higher prices for consumers. Small businesses cannot absorb these increased costs and are often forced to pass tariff increases on to their customers, resulting in higher prices.
- Declining consumer confidence. Tariff uncertainty is causing consumer confidence to decline, meaning shoppers may cut back on spending at local retail establishments.
- Inability to source domestically. Many small retailers strive to source from American manufacturers, but not all products are available domestically.
- Possible closures. Small businesses often lack the margins to absorb increased costs from tariffs, which could lead to store closures.
The cost of tariffs on small businesses
U.S. job creators — including retailers, restaurants, manufacturers and other Main Street businesses — bear the burden of tariffs. Small retailers share how these added costs are affecting them and their customers.
Small business owners on the impact of tariffs
Hear how mounting tariffs and policy uncertainty create significant challenges for small businesses and the economy.
About NRF
The National Retail Federation, the world’s largest retail trade association, passionately advocates for the people, brands, policies, and ideas that help retail thrive. From its headquarters in Washington, D.C., NRF empowers the industry that powers the economy. Retail is the nation’s largest private-sector employer, contributing $3.9 trillion to annual GDP and supporting one in four U.S. jobs – 52 million working Americans. For over a century, NRF has been a voice for every retailer and every retail job, educating, inspiring and communicating the powerful impact retail has on local communities and global economies. nrf.com
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