New Survey: More Than 240 Small Businesses Reveal the Real Cost of Tariffs, and Why Refunds Alone Won't Save Them

WASHINGTON, D.C. — July 22, 2026 — We Pay the Tariffs today released its Small Business Survey Report, a nationwide look at how presidential tariffs have reshaped the finances, workforces, and futures of American small businesses. The report draws on responses from 241 businesses across 40 states and the District of Columbia, and it documents a countrywide scramble to survive costs that arrived with little warning and even less time to adapt.

The findings show that the damage from the range of Presidential tariffs runs far deeper than the duties themselves. To absorb the added costs, 85% of respondents cut their profit margins and 83% raised prices. Nearly half took on new debt, and 40% tapped into personal savings such as retirement funds, a figure that climbed to 55% among businesses with five or fewer employees. Almost three in ten laid off workers, and more than half delayed or canceled planned investments and new product development. When asked how their business had fared over the past year, 57% said it had declined, and four in five of those owners named tariffs as a major factor.

“What this report makes clear is that small businesses have already absorbed enormous damage from these tariffs, taking on debt, draining savings, and cutting jobs just to survive,” said Dan Anthony, Executive Director of We Pay the Tariffs. “Piling new tariffs on top of that won't bring anything back. It will only deepen the debt, extend the uncertainty, and push more of these businesses toward the edge.”

Jeremy Rose of Aris GET, a heavy-equipment parts distributor in Jasper, Georgia, maxed out a $350,000 line of credit to cover bills the tariffs had drained. Eric Salyers of Break From Reality Games in Seattle liquidated nearly $100,000 of his 401(k) and shelved plans to move printing in-house. In Akron, guitar-pedal maker EarthQuaker Devices has paid more than $150,000 in tariffs and, according to CEO Julie Robbins, has raised prices twice, discontinued products, and canceled job openings. These are not isolated cases. Presented with ten possible responses to tariffs, the average business chose four or five, a sign there was no single move that could make them whole.

The report also makes clear that refunds are not a solution for businesses who continue to pay the tariffs through the other authorities the Administration has used. While some in Washington have described IEEPA refunds as a potential windfall, the businesses that paid the tariffs overwhelmingly see them as a band aid. The most common planned use of a refund was paying down debt, cited by 53% of respondents, followed by rebuilding depleted inventory at 40%. More than a quarter said a refund would go toward simply avoiding closure. Even owners hoping to hire, invest, or lower prices said they were holding back, wary that the next round of tariffs could wipe out any gains before they arrive.

That uncertainty now defines the outlook for Main Street. 93% of respondents expect new tariffs under authorities like Section 122 and Section 301, which could be announced as soon as this week, to harm their business over the coming year, and 80% called refunds critical or very important to their future. Just 3% said they had found a U.S. supplier that could meet their product specifications and budget, a finding that cuts against the idea that companies can simply reshore their way out of the cost.

The report closes with a call for a fundamental shift away from permanent tariffs and toward predictable, common-sense trade policy that lets businesses plan, invest, and grow. The full report, including dozens of on-the-record business stories and a state-by-state breakdown of tariff costs, is available at www.wepaythetariffs.com/impact-map.

About We Pay the TariffsWe Pay the Tariffs is a nonpartisan, grassroots coalition of 1,200 small businesses that seeks to illustrate how U.S. tariffs harm their American companies, workers, and customers. Members include manufacturers, distributors, retailers, restaurants, and other importers from every U.S. region. For more information: www.wepaythetariffs.com