US Chamber of Commerce Maps Route for Small Businesses Facing Tariffs

Since the tariffs took effect, international shipments have dropped significantly. Bradley said two of the country’s busiest ports—in Los Angeles and Long Beach, California—have seen a 44 percent drop in cargo ships, with seventy cargo voyages cancelled altogether.

“We’re going to have this slow, drawn-out process of disruptions… that could continue to grow and build up on themselves,” Bradley said. He predicted that shortages might start to occur this summer, due to supply-chain disruptions.

Both men said the tariffs will have unexpected effects. “We’re actually seeing layoffs in a number of steel companies,” Murphy said, even though US steel producers sought the tariffs. “The steel industry is not doing particularly well…. because the tariffs are hurting their customers.”

In a letter to the Trump administration, the US chamber said it “shares President Trump’s goals of expanding American production, creating new jobs, and growing our economy,” but wants three specific changes to tariffs. First, it’s asking for an automatic tariff exclusion for small businesses, similar to one provided for tariffs imposed during the first Trump administration.

Second, the chamber wants categoric exclusions (rather than one based on business size) for things that can’t be produced domestically, like coffee, bananas, and certain minerals. The latter could help the many high-end US manufacturers that rely on other countries for certain parts or components. Bradley said the shift to high-end manufacturing has “traditionally [been] viewed… as progress” because it brings higher wages for American workers.

Lastly, the chamber wants a way for businesses to apply for an exclusion if they’re facing layoffs or closure due to the tariffs. Bradely cited an April survey of Texas executives by the Federal Reserve Bank of Dallas, which found 14.4 percent of respondents were planning to reduce operations or close due to high tariffs.

If the administration resumes small-business exclusions like those from the first term, the chamber wants an easier, faster process, Murphy said.

Avocado Advocacy

What can small businesses do in the meantime? “The best form of advocacy is factual presentations of what’s happening,” Bradley said.

For example, Anchorage avocado prices at Costco have recently fluctuated between $12.99 or $8.99 for five, depending on whether the warehouse company can source them from California or Chile. A restaurateur who usually sells guacamole might describe how that 44 percent price fluctuation affects her business. Is it the difference between adding an extra server to certain shifts? Does a part-time but valuable worker need to quit because of that week’s avocado prices?

The chamber offers a tariff advocacy toolkit for small businesses and welcomes people’s stories. “Those are incredibly useful for us… to give them concrete examples of what’s happening,” Bradley said.