Tariff threats squeeze SMBs

President Donald Trump’s new tariff threats and a court fight over a separate 10 percent import tax are landing on small businesses that already say costs are rising. (cnbc.com) Trump said on Sunday, April 13, that China could face a 50 percent tariff if the United States finds it supplied weapons to Iran. He made the threat in a televised Fox News phone interview, while also saying reports about the alleged shipment did not mean much to him because they were “still fake.” (cnbc.com) A separate case is now before the United States Court of International Trade over the 10 percent global tariff Trump imposed on February 24. Reuters reported on April 10 that 24 mostly Democratic-led states and two small businesses sued, arguing the measure sidestepped a Supreme Court ruling that had invalidated most of Trump’s earlier tariffs. (usnews.com) The legal backdrop has shifted fast this year. CNBC reported on February 23 that the Supreme Court ruled 6-3 that Trump lacked authority under the International Emergency Economic Powers Act to impose sweeping tariffs last April, and that Trump then moved to reimpose new tariffs of up to 15 percent on trading partners. (cnbc.com) For small firms, tariffs work like an added tax on imported goods, parts, and materials paid at the border. The National Federation of Independent Business said on February 18 that about 80 percent of small business owners reported energy costs had a very or moderately significant impact on their businesses, with 58 percent absorbing higher costs through lower profits and 52 percent through higher prices. (nfib.com) That leaves less room to absorb another jump in import costs. The same National Federation of Independent Business survey found that just 8 percent of owners said their energy costs had not increased in the last three years, and vehicle fuel ranked among the major sources of operating expense. (nfib.com) Federal Reserve reporting has shown the same pattern. In an April 24, 2025 article on the Beige Book, CNBC said businesses were adding tariff surcharges, shortening pricing horizons, and looking for ways to pass higher costs to customers as trade policy shifted. (cnbc.com) Some business groups want tariff power narrowed, not expanded. The United States Chamber of Commerce said in a February 2026 small-business tariff update that the Supreme Court ruling had major implications for small businesses, and its chief policy officer argued tariffs should come from Congress rather than emergency powers. (uschamber.com) The White House says tariffs are part of a broader effort to pressure foreign governments and reset trade terms. But for importers buying inventory weeks or months ahead, the immediate problem is not only the rate itself but the speed of the changes and the risk that prices move again before goods clear customs. (cnbc.com) The next marker is likely to come from the courts, not the loading dock. Until judges rule on the 10 percent global tariff and the administration clarifies whether the 50 percent China threat becomes policy, small businesses are still budgeting around moving targets. (politico.com)