Small business owners across the United States are increasingly feeling the strain from a rising economic crisis, as outlined in a recent report by Ranking Member Edward J. Markey (D-Mass.). Released on February 11, the report, titled Pain Street: Trump’s Small Business Affordability Crisis, details how the Trump administration’s policies—particularly tariffs—have dramatically escalated costs for small enterprises. With an estimated $63.1 billion in tariff taxes incurred since March 2025, the repercussions are severely impacting Main Street businesses.
Markey emphasized, “Small businesses don’t have Mar-a-Lago memberships, golden gifts, or ballroom invitations granting them special exemptions from Trump’s reckless economic policies, including his tariff taxes.” His comments reflect a sentiment that the economic rules appear preferentially skewed in favor of large corporations rather than small businesses and local families.
The report reveals several distressing trends affecting small businesses, such as significant job losses. From April 2025, U.S. businesses with fewer than 500 employees lost around 132,000 jobs, disproportionately affecting small enterprises. Furthermore, manufacturing has contracted for ten consecutive months, putting immense pressure on the sector.
Healthcare costs pose another worry. The report notes that over 18 million small business owners and their employees face unaffordable health insurance costs linked to Medicaid cuts and the expiration of ACA premium tax credits. This creates a challenging environment for attracting and retaining talent, a critical factor for growth in small businesses.
Rising operational costs also extend to utilities, with more than 57% of small businesses experiencing increased electricity costs over the past year. These spikes have occurred alongside a broader average increase of 11.5% in household electric bills since Trump took office. Such financial burdens can threaten both profitability and sustainability for small business owners.
Childcare has also emerged as a pressing concern. The report indicates that 70% of families deem raising children too expensive, marking a notable 13-point increase from the previous year. This financial strain could influence workforce availability, as potential employees may delay entering the workforce to manage familial responsibilities.
Rent affordability remains precarious, with soaring rents leaving a record 22.6 million renters, or about 50% of all renters in the U.S., grappling with affordability issues. Small businesses operating on tight margins may find it increasingly difficult to sustain their operations if their employees struggle with housing costs.
Markey’s findings are part of a broader push to bring relief to small businesses. His ongoing efforts include introducing the Small Business RELIEF Act, aiming to exempt smaller enterprises from tariff taxes and facilitate refunds for those already affected. “We must fight back to protect small businesses, working families, and communities in Massachusetts and across the country,” he stated, making it clear that advocacy for small business relief will remain a priority for him.
While small business owners may recognize the immediate impacts of these economic challenges, they must also consider strategic adjustments. Diversifying supply chains, revisiting health insurance options, and exploring local partnerships could mitigate some rising costs. Additionally, staying informed about potential changes in legislation and forthcoming aid programs can empower small businesses to navigate through difficult financial landscapes.
The report sheds light not only on the struggles faced but also on the pressing need for policy reforms aimed at supporting small businesses. With over 30 million small enterprises across the U.S. contributing significantly to job creation, any action taken to alleviate these financial strains can have a lasting impact.
For further details on the report, view the original post here.
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