Rep. Cisneros Highlights How President Trump’s Tariffs are Hurting Small Businesses

Washington, DC – Today, Congressman Gilbert R. Cisneros, Jr. (CA-31) used his time during the Joint House and Senate Full Small Business Committee to point out how President Trump’s tariffs have been especially harmful to American small businesses. Many American-based small companies rely significantly on trade for components used in manufacturing, finished goods, and agricultural products. In addition, consumers faced with higher prices and tighter budgets will likely shift their spending to lower cost outlets and larger discount retailers, further harming many small business’ bottom line. 

Rep. Cisneros also pointed out how the President’s proposed tax plan benefits big corporations and billionaires through loopholes placing small business manufacturers at a disadvantage. Adding to the disparity between large corporations and small businesses, Rep. Cisneros highlighted how Elon Musk’s targeting of the Internal Revenue Service (IRS) has made it harder for small business owners to receive tax assistance. You can watch Rep. Cisneros’s questions here. 

President Trump’s economic policies have put small businesses and small business owners at a significant disadvantage. In particular, the President’s tariffs have harmed the 88% of small firms relying a lot or some on imports for the goods they produce and sell. These companies operate on thinner margins and don’t have the sophisticated supply chain management staff that larger firms do, putting them at a competitive disadvantage.  

In addition, the Washington Republican budget that seeks to extend President Trump’s tax plan would extend a complex deduction that only benefits the top 1% rather than small businesses. Specifically, over half of the 199A deduction on Qualified Business Income went to those who earn over $750,000. Not to mention, the budget also makes $880 billion in cuts to Medicaid, which harms countless Americans across the country.