Tariffs squeeze the backbone of the economy
Nearly half of US small businesses, 42%, have experienced rising costs directly tied to tariffs, according to a Federal Reserve survey published this week. The survey adds to a growing body of evidence that tariffs have acted as a cascading tax on the US economy—hitting small businesses first, then passing through to consumers as businesses exhaust their ability to absorb costs.
Job losses eclipse pandemic-era levels
New data from the Joint Economic Committee reveals that the smallest US businesses lost 4.5 times more jobs in 2025 than during the pandemic in 2020. The finding underscores how tariff-driven cost pressures have compounded the challenges facing main street businesses, many of which lack the supply chain flexibility of larger corporations.
Layered cost increases create compounding risk
A Small Business Expo survey found that no single expense category dominates the cost pressure landscape, suggesting businesses are managing layered increases across marketing, materials, energy, and logistics rather than reacting to one shock. Yale's Budget Lab estimates tariffs have raised $214.7 billion in additional customs revenue above the 2022-2024 average, with 46-86% of that passed through to consumer goods prices.