A recent survey reveals that over a third of small business owners feel negatively impacted by President Trump’s tariffs, as highlighted in a Goldman Sachs study released on Thursday.
In fact, about 38% of those already affected anticipate further challenges. A significant 77% of small business owners expressed concerns, primarily stemming from the uncertainty caused by fluctuating policies from the administration.
This survey involved feedback from 10,000 small businesses as part of Goldman Sachs’ initiative aimed at fostering direct communication between entrepreneurs and policymakers.
The current administration has enacted a broad 10% tariff across multiple countries and has imposed 30% tariffs on its major trading partners, while negotiating for better terms globally.
Moreover, tariffs on imported automobiles and auto parts stand at 25%, and steel incurs a staggering 50% tax.
Jessica Johnson, who operates the Johnson Security Bureau, a private security firm in the Bronx, delved into the pressing realities facing small businesses. This third-generation company primarily serves construction sites, which are particularly sensitive to changes in trade policies.
“We anticipate an increase in uniform prices as our suppliers continue to import them,” Johnson noted in an email.
“We also hope that acquiring a new armored truck will be beneficial for us. If we had purchased it last year, it would have cost around $150,000. Now, it’s probably nearing $200,000.”
She pointed out that tariffs are causing both direct impacts through rising prices and indirect issues through delayed projects. “Some of our construction clients are holding off on their projects until there’s more clarity on tariffs,” she mentioned.
The ongoing uncertainty about trade policies is compounded by significant challenges related to access to capital.
The survey indicates that 81% of small businesses looking for loans or credit over the last year faced difficulties in securing affordable funding.
High interest rates have pushed 49% of small businesses to halt expansion plans, while 41% have restricted new ventures.
Johnson shared her personal experiences, stating, “A few years back, we faced a crisis with slow-paying clients. Without affordable capital, we had to rely on high-interest loans just to stay afloat.”
She described how this burdensome debt stifled growth opportunities. “We couldn’t expand or chase new projects, effectively stalling our progress.”
The intricate nature of tax policies adds to these hurdles, with 82% of small business owners feeling that federal tax regulations favor larger enterprises.
Johnson and her team emphasize the need for straightforward and stable policies, arguing, “It’s hard to plan for the long term when tax laws are complex or frequently changing.”
Despite these substantial hurdles, there remains a sense of optimism. A Goldman survey found that 75% of small businesses maintain a positive outlook, with 72% hoping for growth in 2025.
While 42% acknowledge they lack the required resources and know-how for effective implementation, many are exploring artificial intelligence to boost their efficiency.
Johnson concluded by stressing the importance of addressing issues like tariffs and access to capital, along with calls for tax simplicity. She underscored the essential role small and medium-sized businesses play in policymaking.
“Small businesses drive the American economy. We are vital creators of jobs, innovation, and community building, and our voices should be heard. We offer insights that can enhance or hinder opportunities for policymakers beyond just one-off decisions.”
The White House has been asked for a comment on this situation.
