STATEMENT: Small businesses caught in devastating inflation-tariff squeeze as July costs hit 5-month high call for relief
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Janel Knight Trulear
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STATEMENT: Small businesses caught in devastating inflation-tariff squeeze as July costs hit 5-month high call for relief
Statement by Small Business for America's Future Co-chair Anne Zimmerman​, Founder & Owner of Zimmerman & Co CPAs Inc., on the Bureau of Labor Statistics July Consumer Price Index Report
Aug. 12, 2025– “Small Business for America’s Future is alarmed by today’s July inflation report, which shows inflation accelerating to its fastest pace in five months, a devastating development for small businesses, which are fighting for survival in an increasingly hostile economic environment.
“Small businesses already operating on razor-thin margins and struggling with trade policy uncertainty cannot withstand inflation. Unlike large corporations with large cash reserves and negotiating power, small businesses have nowhere to turn for relief. They can’t absorb these rising costs, they can’t easily pass them on to customers without losing business, and they can’t cut costs without harming their ability to keep their doors open. In fact a SBAF survey shows 80% of Main Street businesses see tariffs as a threat to their survival.
“Congress and the administration must provide relief that recognizes the disproportionate burden these policies place on small businesses. Solutions like the CANADA Act, which would exempt goods imported by or for the use of small business from the duties imposed by tariffs, and the Small Business Liberation Act are steps in the right direction. We need policy solutions that provide the stability and predictability small businesses require to plan, invest, and grow.
“The strength of America's economy lies in the entrepreneurial activity of our small business community. Let's provide them with the stable economic foundation and sound policies they need to compete and grow.
Here’s what small business owners are saying:
“I don’t know how to put a business plan together that makes any sense to anyone,” Mr. Scheffel said. Neither do many of his customers, who have delayed or reduced orders.
Doug Scheffel, Owner of ETM Manufacturing, Littleton, MA
"We haven't been able to do that expansion that we were hoping to do. And had to put the brakes on that again, because I don't wanna hire some folks and then have to lay them off in a month or two. And the going back and forth, yes, we're gonna do the tariffs, no we aren't. You know, it just puts us in a limbo kind of state, in a lukewarm state. And it's frustrating.
Gladys Harrison, Owner of Big Mama’s Kitchen and Catering, Omaha, NE
“The reason why we were able to do any type of growth is that mid-last year, I invested my entire retirement… So I'm at this point where all my cards are on the table. So if we aren't able to weather it, there's no more reserves for me to kind of tap into as a business owner. I don't have the ability to weather a 3 to 6 month loss.”
Gabe Hagen, Owner of Brick Road Coffee, Tempe, AZ
"We're going to do the best we can to keep our prices where they are,” she said. “However, if prices go up, then we also have to raise our prices accordingly in order to make money. We're in this to make some money, to make a living, to support our families. ... So, we have to do what we have to do."
Katrina Golden, Owner of Lil Mama’s Sweets & Treats, August GA
To schedule an interview with a representative from Small Business for America's Future, contact Janel Knight Trulear at janel@emccommunications.com or (617) 875-6581.
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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.
