Small Businesses Seek Tariff Exclusions

PUBLISHED: May 5

Small Businesses Seek Tariff Exclusions

An automatic exclusion for small business importers could help relieve the impact of the higher tariff rates, according to a letter from business groups to economic officials in the Trump administration.

Noting that more than 40 million American jobs depend on trade and that small businesses do not have the margin or capital reserves to sustain the increased tariffs, the letter — authored by the U.S. Chamber of Commerce — asks the administration to immediately use its tariff flexibility to create an exclusion process. This process would allow companies to apply for an exclusion if they can demonstrate that tariffs pose a risk to employment for American workers. Additionally, the exclusion would only be for products that cannot be produced in the United States or are not readily available.

Without an exclusion process, the letter warns businesses could suffer irreparable harm while they wait weeks or months for the United States to come to terms on new trade agreements with other countries.

“The chamber supports many of the president’s policy goals, including eliminating unfair trade and non-trade barriers, and driving American investment,” said Suzanne Clark, president and CEO of the U.S. Chamber. “At the same time, we have heard from a historic number of small businesses who have made it clear: They need immediate relief from tariffs. As each day goes by, small businesses are increasingly endangered by higher costs and interrupted supply chains that will cause irreparable harm. We applaud the administration’s efforts to negotiate as many new trade agreements as possible that expand market access for U.S. companies and benefit American workers, but these deals take time, and many businesses simply can’t afford to wait while negotiations proceed.”

The full letter is available here.