Ranking Member Edward J. Markey, Democratic Leader Chuck Schumer, and Senate Democrats introduced the Small Business Liberation 2.0 Act on March 10 to shield small business owners, workers, and consumers from economic harm caused by new tariffs announced by former President Trump. The legislation follows a Supreme Court decision last month that struck down Trump’s previous tariffs under the International Emergency Economic Powers Act. In response, Trump imposed a 15% tariff on all imports using Section 122 of the U.S. Trade Act of 1974, which is now being challenged in court.
The proposed bill aims to exempt small businesses from paying these Section 122 tariffs, refund any such tariffs already paid by small businesses, and prevent price gouging resulting from the new policy. Lawmakers say this measure is necessary because small businesses cannot afford further uncertainty or increased costs while waiting for additional court decisions.
“Trump’s tariff tax scam is simple: if at first your policies are ruled illegal, double down and try, try again,” said Ranking Member Markey. “America’s small businesses cannot bear another bruising round of uncertainty and consumers in Massachusetts and across the country cannot foot the bill for another punishing round of Trump’s tariff taxes. And they certainly cannot wait for another court decision. When will this administration listen and stop putting pain on Main Street? It’s time to end Trump’s latest round of tariff tax madness and deliver real relief to the American people.”
Leader Schumer said, “The Trump administration has been stealing from small businesses and consumers to pay for their global trade war. Now – the Supreme Court has ruled Trump’s tariff tax illegal, but Trump is doubling-down with new tariffs that will crush families and small businesses. We need to protect Main Street from Trump’s erratic decision making and sky-rocketing prices. Small business should not bare the brunt of Trump’s whims. The Small Business Liberation 2.0 Act would shield consumers and businesses from further harm. I urge my colleagues to join in this legislation.”
Supporters note that nearly $166 billion in illegal tariff revenue has been collected so far by the administration—a third likely coming from small businesses—with average households paying more than $1,700 due to these tariffs; new measures could cost households an additional $570 over five months.
The bill is cosponsored by Senators Mazie Hirono, Kirsten Gillibrand, John Hickenlooper, Amy Klobuchar, Chris Van Hollen, and Jackie Rosen. Several stakeholders voiced support for the act: Richard Trent of Main Street Alliance said it “recognizes that reality by exempting small businesses from these duties… This legislation is a common-sense step to protect small businesses.” John Arensmeyer of Small Business Majority cited research showing half of owners have raised prices due to tariffs while many have delayed imports or expansion plans as a result.
Todd McCracken of National Small Business Association added: “For the better part of a year now, small-business owners have been subject to increasing prices and economic unpredictability due to the imposition of various tariffs… By providing a specific small-business carve-out, this legislation simply puts us on a level playing field with various larger firms that have already been granted such exemptions.”
The Senate Small Business and Entrepreneurship Committee supports informed decision-making on national fiscal priorities according to its official website. The committee also offers Congress comprehensive policy options on federal budget components according to its official website, features Lindsey Graham as chairman and Jeff Merkley as ranking member according to its official website, contributes via resolutions and reconciliation instructions according to its official website, was established through the Congressional Budget and Impoundment Control Act of 1974 according to its official website, and provides nonpartisan budgetary analysis through oversight of the Congressional Budget Office according to its official website.
Looking ahead, supporters hope Congress will pass this exemption quickly as similar efforts were previously blocked in both May and August last year.
