US small businesses are facing growing uncertainty as President Donald Trump’s tariffs take effect, with the administration scaling back resources meant to help them. The Small Business Administration plans to eliminate 43% of its employees and cut staff at lending and assistance programs at the Treasury and Commerce Departments.
Critics say this will remove vital lifelines for struggling businesses, which were kept afloat during the COVID-19 pandemic. Small business advocates warn that Trump’s trade agenda is creating a mismatch between increasing costs from tariffs and government spending cuts on programs helping Main Street.
“This is not a pandemic, it’s a man-made policy,” said Dilawar Syed, former deputy administrator of the SBA in the Biden administration. “We’ve created so much churn in the economy, giving people no chance to prepare.”
The Trump administration claims that extending the 2017 Tax Cuts and Jobs Act will help small businesses, but experts say it won’t erase problems caused by cutting SBA staff and enacting massive tariffs.
As imports from China face up to 125% duty, many small businesses rely on them. Even some Republican lawmakers acknowledge that tariffs could make it difficult for entrepreneurs already operating on thin margins.
Senator Thom Tillis of North Carolina said: “It’s got to be settled down pretty quickly… you’re probably going to suffer electoral consequences.”
Source: https://www.politico.com/news/2025/04/10/small-business-trump-tariffs-doge-economy-00282173