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Small‑business witnesses tell Congress tariffs are raising costs and sowing planning uncertainty
Summary
At a joint small-business hearing, lawmakers and witnesses warned that sweeping tariffs announced by the administration act like a tax on consumers, raise supplier prices and make inventory and hiring planning difficult for firms with thin margins and little negotiating power.
Members of the House and Senate small-business committees and witnesses at a joint hearing spent considerable time debating the economic effects of recent tariff announcements, with several lawmakers and witnesses saying the tariffs act as a tax on families and small firms.
Ranking Member Markey warned that “these reckless tariffs and the impending retaliation will ruin many small businesses,” and said estimates show American households could pay “an additional $3,400 in costs.” He said small exporters and importers lack the scale to absorb higher supply‑chain costs.
Tax professionals and small‑business owners described immediate and practical consequences. Anne Zimmerman, founder of Zimmerman & Company CPAs, said the Small Business uncertainty index is “higher than it's been, I think, the second highest ever,” and gave examples of business owners postponing expansion because they cannot predict future costs. “He was already into $50,000 into opening his second location, and he's having to put that on hold simply because of the tariffs that have been enacted,” Zimmerman testified.
Witnesses and members described how large buyers can negotiate with suppliers to blunt cost increases while small local vendors cannot. Zimmerman said that difference can leave small suppliers bearing higher costs: “We as small business, truly small businesses, don't have the negotiating power that a large business has.”
Several lawmakers tied tariff policy to broader budget choices. Ranking Member Velasquez and other Democrats criticized the administration’s coordination of tariffs with proposed cuts to safety‑net programs, arguing that the combined effect would disproportionately harm working families and Main Street employers.
Ending: Both parties signaled a desire to reassert congressional oversight of tariffs. Committee members used the hearing record to press witnesses on planning impacts and to gather examples that could inform future hearings or legislation on trade authority and small‑business relief.
