A new bill led by Democrats aims to shield small businesses from the latest tariffs imposed by Donald Trump, as many business owners continue to struggle with the financial impact of the president’s key economic policy.
The legislation, introduced by Massachusetts senator Ed Markey, is called the “Small Business Liberation 2.0 Act”. It proposes exempting goods imported by or intended for small businesses from the new tariffs Trump enacted on 20 February, shortly after the US Supreme Court struck down his earlier “liberation day” tariffs.
In addition, the bill includes provisions to prevent companies from engaging in price gouging linked to the newly imposed tariffs. Several Democratic senators have joined as co-sponsors of the legislation, including Chuck Schumer, Mazie Hirono, John Hickenlooper, Kirsten Gillibrand, Amy Klobuchar and Chris Van Hollen.
“Trump’s tariff tax scam is simple: if at first your policies are ruled illegal, double down and try, try again,” Markey, who is ranking member of the Senate small business and entrepreneurship committee, said.
“America’s small businesses cannot bear another bruising round of uncertainty and consumers in Massachusetts and across the country cannot foot the bill for another punishing round of Trump’s tariff taxes.”
Following the Supreme Court ruling, Trump announced a fresh 10% global baseline tariff under Section 122 of the Trade Act of 1974, a provision that allows a president to impose tariffs for up to 150 days.
While the proposed bill could offer relief to small businesses facing rising costs from the ongoing tariff battles, it is unlikely to pass in the Senate, where Republicans currently hold the majority.
Business owners across the United States have shared accounts of the strain caused by the tariffs, describing heightened financial pressure and uncertainty as costs continue to climb.
“The tariffs, especially those on Brazil, have raised our costs by about $1m in the last year,” Dr Charlie Elrod, who runs a company that produces natural health products for livestock, previously told the Guardian. After absorbing the higher costs for six months, the company eventually raised prices by 5%. “That helped some, but our profitability is definitely lower this year,” he said.
Even before the Supreme Court decision, more than 1,000 companies had filed lawsuits challenging the government’s tariff policy. Last week, a US trade court judge ordered the government to begin issuing billions of dollars in refunds to importers who paid tariffs that the court ruled were collected illegally.
