Tariffs Could Cost Small Businesses $202 Billion Each Year

New tariff rates are expected to cost American small businesses $202 billion annually, according to a new report from the U.S. Chamber of Commerce.

The chamber arrived at that number by applying the applicable country-level tariffs that went into effect earlier this month to the total amount of goods imported by businesses with fewer than 500 employees in 2023 ($868 billion).

However, the U.S. Chamber noted the estimated $202 billion in tariff taxes may actually understate the level of tariffs imposed on small businesses because it does not account for goods-specific tariffs. For example, if a small business imports an item made with steel from Europe, it will have a 50 percent tariff on the steel’s value share rather than the standard 15 percent tariff. Similarly, the U.S. Chamber’s estimates don’t capture the elevated 25 percent tariff on vehicles made in Canada and Mexico or the 25 percent automotive parts tariff on most of the rest of the world.

A full table of the U.S. Chamber’s per-country tariff estimates is available here.

In light of this data, Neil Bradley, executive vice president and chief policy officer at the U.S. Chamber, said the organization would continue to ask the Trump administration for a tariff exemption process for small businesses.

“We hear from local chambers across the country about the need to lower prices and grow the economy. That’s why we are the biggest champions of the administration’s goal to drive investment in the United States,” Bradley said in a statement. “The deregulatory efforts and the tax extensions are a great start, but the price increases that will inevitably follow these unprecedented tariff levels make the cost of living and shopping for everyday essentials more expensive.”