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Becker Kaufman

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STATEMENT: Court ruling on tariffs is welcome news, but small businesses are still paying the price

Statement by Small Business for America's Future council member Gabe Hagen, owner of Brick Road Community Corporation in Tempe, Arizona, following the U.S. Court of International Trade's decision striking down a second round of Trump administration tariffs.

May 8, 2026 – "For the second time this year, the courts have ruled the administration's tariffs illegal. This is a victory for Main Street and for the rule of law, but while Washington keeps cycling through legal authorities to justify the blanket tariffs, small businesses have been absorbing the costs, losing customers over high prices, and putting hiring on hold. And right now, with inflation still squeezing customers, gas prices climbing, and healthcare premiums going through the roof, Main Street can't afford to wait for relief.

"More than $166 billion in refunds are headed back to importers, not the mom and pop shops on Main Street. We paid the tariff in higher costs, lost sales, and canceled hiring. Unless those refunds make their way down to us, we're left paying the price. Importers are not required to pass refunds to us. Policymakers need to make sure the small businesses who absorbed these tariffs, whether we paid Customs directly or paid them in higher invoices on imported goods, have a path to relief.

"At Brick Road Coffee in Tempe, Arizona, my business runs entirely on imports like coffee beans from Brazil, Colombia, and Ethiopia, and the cups, lids, and paper goods that go with them. When the tariffs hit, I spent $26,000 upfront stockpiling coffee cups just to get ahead of the increases, and I still ended up absorbing 12 to 15 percent jumps on paper goods. I had to cut $75,000 from my expansion budget for our second location because the unpredictability made it impossible to plan. My foot traffic is still strong, but my loyal customers are buying less per visit because they're feeling the squeeze too. And I'm not alone, a Small Business for America's Future survey found 80% of small businesses affected by tariffs view them as an existential or major threat to their operations.

"This ruling is cause for celebration, but it doesn't undo the damage already done. We are ready to work with anyone in Congress willing to deliver solutions and relief. That means refunds that reach the small businesses who actually paid these costs, and an end to a trade policy that keeps treating Main Street as collateral damage. The court sided with small businesses this week. Now Washington must finish the job."

To schedule interviews with these small business owners, contact Becker Kaufman at Becker@emccommunications.com or 703-728-0135. 

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About Small Business for America's Future
Small Business for America's Future is a national coalition of small business owners and leaders advocating for policy solutions that promote a thriving, inclusive economy. We work to ensure that lawmakers prioritize the needs of Main Street, advancing a just and equitable economic framework for small business owners, their employees, and their communities. For more information, visit www.smallbusinessforamericasfuture.org.