Small businesses are sounding the alarm over the impact of Trump tariffs on Main Street. (Photo: Harrison Keely )
Donald Trump’s tariff games are causing upheaval in international trade, and the aftershocks are shaking the foundations of Main Street businesses, a new survey has found.
The findings are based on responses from 4,028 small business owners, who were polled in June by Alignable, a network of more than 9 million entrepreneurs across more than 35,000 communities.
“It’s not just a few industries or importers. The uncertainty is cascading through supply chains, cutting into margins, and stifling confidence,” says Alignable CEO and Co-Founder Eric Groves.
Trump sent shock waves through the global economy in April by using unusual emergency powers to impose tariffs (i.e., trade taxes) on most of the products that the US imports from most countries, the highest rate since 1909, according to the Yale Budget Lab.
The tariffs represent the largest tax hike in US history, including Franklin D. Roosevelt’s extraordinary levies to fight World War II.
Since then, Trump has repeatedly withdrawn, delayed and reimposed some tariffs creating uncertainty that has cause the dollar to fall more than 10 percent in the past six months, the largest drop since 1973, according to The New York Times.
While other nations are the tariff’s targets, Main Street has been caught in the crossfire.
The survey, conducted with Harvard Business School researchers Zoe Cullen and Ebehi Iyoha, and MIT economist David Atkin. found that 44 percent of small business owners saw their revenues drop in June.
Even more concerning: one in five entrepreneurs fear their businesses won’t make it to 2026, if disruptions caused by Trump’s tariff flip flops continue.
“Using the threat of tariffs as a short-term negotiation ploy is triggering real, long-term damage across our economy,” Groves asserted.
Revenues reportedly declined by 13 percent on average, and 20 percent of business owners report losses of more than 25 percent
The aftershocks aren’t limited to this month — 49 percent of all small business owners across the country expect continued declines if tariffs remain a threat, the survey found.
No economic sector appears untouched. Industries most affect included;
- Wholesale Trade (72%),
- Restaurants (71%),
- Retail (57%),
- and Manufacturing (56%).
In addition, business owners in sectors such as Travel/Lodging (52%), Construction (52%), Agriculture (50%) Transportation (47%), and even Healthcare (35%) are also reporting widespread stress.
What’s more, a majority of business leaders expect conditions to worsen in the months ahead.
Main Street clearly has its fingers on the pulse of the economy. Many say consumers are pulling back on spending because of the uncertainty. The latest consumer confidence figures, as of June 18 bear that out.
The Conference Board’s Consumer Confidence Index deteriorated by 5.4 points in June, falling to 93.0 (1985=100) from 98.4 in May.
The “Present Situation Index” — based on consumers’ assessment of current business and labor market conditions— also fell 6.4 points to 129.1.
The “Expectations Index” —based on consumers’ short-term outlook for income, business, and labor market conditions — fell 4.6 points to 69.0, substantially below the threshold of 80 that typically signals a recession ahead.
“This isn’t just about today’s trade decisions — it’s about the playbook we use going forward,” said Groves. “Using tariffs as a negotiating tactic may seem aggressive, but the collateral damage is real. Small businesses are the backbone of the U.S. economy.
“Undermining their confidence and stability for short-term leverage is a dangerous bet.”
The current climate is forcing small businesses to adapt — 53 percent say they are actively adapting through more dedicated networking, up from 45% in late May.
They’re turning to what they know works — building local connections, focusing on word-of-mouth, and forging new partnerships to weather the storm.
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