A new Democratic-led bill seeks to exempt small businesses from Donald Trump’s latest round of tariffs, as small business owners continue to reel from the impacts of the battle over the president’s signature economic policy.
Introduced by Sen. Ed Markey of Massachusetts, the bill, known as the “Small Business Liberation Act 2.0,” would exempt goods imported by or for use by small businesses from the new tariffs, which Donald Trump signed into law on Feb. 20, immediately following the U.S. Supreme Court ruling invalidating his “liberation day” tariffs.
The text of the bill also prohibits price gouging as a result of the latest tariffs. Democratic Senators Chuck Schumer, Mazie Hirono, John Hickenlooper, Kirsten Gillibrand, Amy Klobuchar and Chris Van Hollen are signed on as co-sponsors of the bill.
“Trump’s tariff tax scam is simple: If at first his policies are deemed illegal, double down and try, try again,” said Markey, ranking member of the Senate Small Business and Entrepreneurship Committee.
“America’s small businesses cannot endure another round of uncertainty, and consumers in Massachusetts and across the country cannot foot the bill for another round of Trump tariffs.”
After the Supreme Court decision, the president announced that he would enact a new global base tariff of 10% under section 122 of the Trade Act of 1974, which allows him to impose tariffs for 150 days.
The introduction of the bill could be a welcome development for small business owners, who have struggled to cope with the fallout from Trump’s global tariff wars. However, it is unlikely to advance in the Senate, where Republicans have a majority.
Entrepreneurs across the country shared their experiences with The Guardian, with many of them facing extreme stress and financial hardship due to rising costs.
“Tariffs, especially those on Brazil, have increased our costs by about $1 million in the last year,” Dr. Charlie Elrod, who runs a company that makes natural livestock health products, previously told The Guardian. After six months of absorbing the cost, the company increased prices by 5%. “That helped a little bit, but our profitability is definitely lower this year,” he said.
Both before and after the Supreme Court ruling, more than 1,000 companies filed lawsuits against the government over its tariff policy. Last week, a U.S. trade court judge ordered the government to start paying billions of dollars in refunds to importers who paid tariffs that the court said were illegally collected.
