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2026 SMALL BUSINESS SURVEY REPORT
We Pay the Tariffs asked 241 small businesses what tariffs have actually cost them. The answers: drained savings, canceled hires, and a lot of very tired owners. This report breaks down the real financial toll, what it's done to jobs and prices, the supply chain mess nobody warned them about, and what they're doing with their refunds now that they've landed, right as the next round of tariffs comes into view.
We Pay the Tariffs surveyed 241 small businesses across 40 states and the District of Columbia to understand what more than a year of presidential tariffs has actually cost them. The findings show damage that goes well beyond the tariff bill itself.
Faced with sudden costs and no time to adjust, small businesses cut margins (85%) and raised prices (83%), but that wasn't enough. Nearly half took on debt, and 40% dipped into personal savings just to keep operating. More than half delayed or canceled planned investments, and 29% laid off workers.
Many businesses tried to find domestic suppliers to avoid the tariffs altogether. Almost none could: just 3% found a U.S. supplier that could match their specifications and budget.
In February 2026, the Supreme Court ruled that IEEPA didn't authorize these tariffs, opening the door to refunds. But for most small businesses, refunds aren't a windfall. They're triage. More than half (53%) plan to use refunded money to pay down debt, and over a quarter say the funds will determine whether their business survives at all.
The uncertainty isn't over. With new tariffs possible under Sections 122, 232, and 301, 93% of respondents expect the next year to hurt their business, and more than half expect it to hurt "very" negatively.
