Neil Bradley
Executive Vice President, Chief Policy Officer, and Head of Strategic Advocacy, U.S. Chamber of Commerce
Published
April 15, 2025
Tariffs are having a real and devastating impact on thousands of small businesses across the nation as uncertainty, rising costs, and cancellations are hitting home. Our top experts answer the most frequently asked questions from small business owners on tariffs.
For more insights, view the Small Business Tariff Update: What to Know Now recap on our small business digital platform, CO— by U.S. Chamber of Commerce, or watch the program here.
Key Things to Know About Tariffs
- A tariff is a tax on imported goods paid by the U.S. business or individual receiving those goods at their port of entry.
- Tariffs are levied on imported goods, not on services.
- Broad-based tariffs bring painful retaliation against American exports, with American workers and farmers likely the first to feel the pain.
Recent Tariffs Impacting Small Businesses
- 25% tariffs on goods from Canada and Mexico. These tariffs were imposed at the beginning of March on all goods that do not comply with the U.S.-Mexico-Canada (USMCA) Agreement that President Trump negotiated in his first term and were not subject to the 90-day pause. About one-third of everything coming in from Canada and Mexico today is tariffed. The rules for complying with USMCA are complex and vary from one sector to another.
- A series of tariffs on goods from China. We've seen a series of six waves of tariffs imposed on imports from China. There are 145% tariffs in force, and that's on top of the tariffs that President Trump imposed on goods from China back in his first term. In total, it's approximately a 170% duty. It's almost impossible to trade under those terms, and this is having a big effect on many companies.
- 25% tariffs on steel and aluminum imports. The tariffs that have been imposed on imports of steel and aluminum from all countries also apply to so-called “derivatives.” These are products that have a lot of steel or aluminum in them, and the tariff applies to that share of the content of the product coming in. Exclusions from the tariffs that individual companies had gotten in 2018-2021 have been voided, and the tariffs now apply to all steel and aluminum from all countries.
- Tariffs on automobile imports. Tariffs have been imposed on all imports of automobiles from all sources as of April 3, and it's anticipated that on May 3, that duty will also be imposed on all auto parts coming into the country.
- 10% tariffs on all imported goods. On April 2, we saw the introduction of so-called reciprocal tariffs: a 10% duty imposed on all goods from all around the world, and for about 57 of our largest trading partners, considerably higher duties. For a period of a few hours, those duties soared as high as 20% on all goods from the European Union, 24% on goods from Japan, and well above 40% from many Southeast Asian countries.
Small Businesses on Tariff Impacts
Frequently Asked Questions
Q. Which tariffs have been paused?
The tariff pause was only on the so-called “reciprocal” tariffs above 10%. The 10% tariff is still enforced, and it’s still a pretty big deal. We now have some of the highest tariffs in recent history, and the United States is one of the most tariffed countries in the world. All told, these tariffs introduced in the year to date represent the biggest tax increase in more than 50 years.
Q. Which industries or commodities will experience the most significant disruptions due to the tariffs?
Many of America’s most advanced manufacturing industries — including aerospace, medtech, and automotive — depend on global supply chains. They will be able to adapt only at great cost and over a period of more than a decade. Even industries that are largely domestic in production — such as the manufacture of windows or cement — will see heavy new costs, and the prices of domestically-produced goods will rise in parallel with those of tariffed imports. Many small businesses that depend on imported components will feel tariffs cut into already slender margins.
Q. How do we know if goods imported from Canada or Mexico qualify for duty-free treatment under USMCA?
There are different tests for goods to qualify under USMCA. Some goods are obviously produced in one spot in North America, like lumber from a tree in Oregon. Other products, such as autos, must comply with detailed rules of origin outlined in the agreement. In other cases, a product must undergo a “substantial transformation” that adds value and allows it to be deemed North American. Companies should consult trade counsel or their customs broker for details.
Q. Are containers on the water right now subject to tariffs when they arrive at the port?
There is an exception from the tariffs for goods “on the water” — that is, goods loaded onto a vessel and on the final mode of transit to the U.S. before the effective dates of each of these tariffs.
Q. Our products normally are exempt from import duties. Will these products be exempt from the new tariffs?
No, with very few exceptions. At the beginning of the year, about half of all imported goods paid no tariffs, but the administration has granted no exceptions to its sweeping new tariffs to date (except for select products such as semiconductors, pharmaceuticals, and lumber that the administration plans to subject to a different class of tariff in the near future). A rare exception is energy and some minerals.
Q. Do you anticipate any further small business exemptions or reimbursements?
Administration officials have uniformly said there will be no formal process for businesses to seek exemptions. President Trump has at times seemed to hint otherwise, but on April 13, he posted a denial.
Q. What is the U.S. Chamber doing in Washington to address the impact of tariffs? How can local Chambers help support this advocacy?
The Chamber has pressed a wide array of members of the administration and Congress to reject the use of broad-based tariffs. We are working with our members — especially small businesses — to help them tell officials how they are being harmed by the tariffs.
We are providing timely updates and resources to help small businesses and state and local chambers navigate the changes. We encourage chambers to share the resources below with their members and communities.
Understanding Tariffs
Recent Press Statements
Share Your Story
Share your small business tariff story with the U.S. Chamber of Commerce.
About the authors
Neil Bradley
Neil Bradley is executive vice president, chief policy officer, and head of strategic advocacy at the U.S. Chamber of Commerce. He has spent two decades working directly with congressional committee chairpersons and other high-ranking policymakers to achieve solutions.
John G. Murphy
John Murphy directs the U.S. Chamber’s advocacy relating to international trade and investment policy and regularly represents the Chamber before Congress, the administration, foreign governments, and the World Trade Organization.
