Ranking Member Markey, Leader Schumer, Senate Democrats Lead Bill to Protect America’s Small Businesses from Trump’s Latest Tariff Tax Madness

Trump's Reckless Economic Policies Making Life Unaffordable for Small Businesses, Workers, and Consumers

Bill Text (PDF)

(Washington, March 10) - Ranking Member Edward J. Markey (D-Mass.), alongside Democratic Leader Chuck Schumer (D-N.Y.) and Senate Democrats, today introduced the Small Business Liberation 2.0 Act to protect small business owners, workers, and consumers from further tariff-related economic harm. Following the Supreme Court's decision last month to strike down President Trump's illegal International Emergency Economic Powers Act (IEEPA) tariffs, Trump announced a sweeping 15% tariff on all imports entering the United States citing Section 122 of the U.S. Trade Act of 1974. The use of Section 122 of the U.S. Trade Act of 1974 is already being challenged in the courts as its original purpose was to allow tariffs when necessary to address "large and serious United States balance-of-payments deficits."

The Small Business Liberation 2.0 Act would exempt small businesses from paying Section 122 tariffs, refund small businesses for any Section 122 tariffs paid, and prevent price gouging for consumers because of Trump's new tariff policy.

"Trump's tariff tax scam is simple: if at first your policies are ruled illegal, double down and try, try again," said Ranking Member Markey. "America's small businesses cannot bear another bruising round of uncertainty and consumers in Massachusetts and across the country cannot foot the bill for another punishing round of Trump's tariff taxes. And they certainly cannot wait for another court decision. When will this administration listen and stop putting pain on Main Street? It's time to end Trump's latest round of tariff tax madness and deliver real relief to the American people."

"The Trump administration has been stealing from small businesses and consumers to pay for their global trade war. Now - the Supreme Court has ruled Trump's tariff tax illegal, but Trump is doubling-down with new tariffs that will crush families and small businesses," said Leader Schumer. "We need to protect Main Street from Trump's erratic decision making and sky-rocketing prices. Small business should not bare the brunt of Trump's whims. The Small Business Liberation 2.0 Act would shield consumers and businesses from further harm. I urge my colleagues to join in this legislation."

To date, the Trump administration has collected nearly $166 billion in illegal tariff revenue-a third of which likely came from small businesses. These illegal tariffs raised taxes on products from nearly every country on earth and jacked up prices for American small businesses, workers, and families. The average American household has paid more than $1,700 in Trump tariff taxes. Trump's new tariff taxes are projected to cost the average household another $570 for the 150 days they are in place.

In addition to Ranking Member Markey and Leader Schumer, the Small Business Liberation 2.0 Act is cosponsored by Senators Mazie Hirono (D-Hawaii), Kirsten Gillibrand (D-N.Y.), John Hickenlooper (D-Colo.), Amy Klobuchar (D-Minn.), Chris Van Hollen (D-Md.), and Jackie Rosen (D-Nev.).

"Trump's relentless attempts to implement illegal tariffs on other countries, while driving up prices for business owners and entrepreneurs, are once again threatening the very existence of small businesses across the country," said Senator Hirono. "Small businesses are essential to our communities, and I am proud to join Ranking Member Markey once again in introducing legislation to shield these businesses from the fallout of Trump's new global tariffs."

"Small businesses are the backbone of the American economy, and they deserve better than President Trump's illegal tariffs and cost-increasing chaos," said Senator Gillibrand. "I am proud to cosponsor the Small Business Liberation 2.0 Act and will continue to do everything in my power to shield New Yorkers from these horrific tax hikes."

"Trump's cost-raising tariffs have made it incredibly difficult for Nevada's small businesses to plan for the future. Even though the Supreme Court declared the tariffs illegal, Trump immediately doubled down and imposed additional tariffs under a different, obsolete, and almost certainly unlawful authority - ensuring the chaos will continue," said Senator Rosen. "Our small businesses simply can't afford to stay open under these conditions, which is why I'm helping introduce this bill to exempt them from Trump's latest tariffs and provide them with much needed financial relief. Small businesses are the backbone of Nevada's economy, and I'm committed to doing everything I can to help them succeed."

Several small business stakeholders voiced their support for the Small Business Liberation 2.0 Act.

"Small businesses didn't ask to be collateral damage in global trade fights. When tariffs are imposed overnight, it's Main Street, not multinational corporations, that gets squeezed first," said Richard Trent, Executive Director of Main Street Alliance. "The Small Business Liberation 2.0 Act recognizes that reality by exempting small businesses from these duties, requiring refunds for those already paid, and cracking down on price gouging that often follows tariff shocks. This legislation is a common-sense step to protect small businesses, stabilize prices for consumers, and ensure that trade policy doesn't come at the expense of the entrepreneurs who power our local economies."

"Tariffs continue to be a major concern for America's small businesses: Small Business Majority's research found that half of small business owners have increased the price of certain materials or products, 29% have delayed importing materials or goods and 22% have delayed business expansion plans as a result of tariff policies," said John Arensmeyer, Founder and CEO of Small Business Majority. "Among firms that don't import directly, our research also found that nearly half (45%) of small businesses buy from U.S. suppliers who import from other countries. Small businesses that rely on supply chain access managed by larger importers are even more likely to pay higher prices as they lack the negotiating and market power that larger businesses do, leading to inflated prices at the benefit of the supplier. The best way to give small businesses immediate relief from these ongoing tariff challenges is for Congress to pass legislation that would exempt small businesses from the new Section 122 tariffs while also directing federal agencies to take action to prevent larger suppliers that sell to small businesses from passing their tariff-related costs on to small firms."

"For the better part of a year now, small-business owners have been subject to increasing prices and economic unpredictability due to the imposition of various tariffs, and I applaud Senator Markey for his leadership in working to provide a small-business exemption," said Todd McCracken, CEO & President of the National Small Business Association (NSBA). "In the next week, we will be releasing a new economic report that highlights how these tariffs are impacting small firms: just three percent of small businesses say tariffs have positively impacted their business while nearly half say they have been negatively impacted. The majority of small businesses say they have incurred increased costs, and among those, 74 percent say those cost increases are due to tariffs. By providing a specific small-business carve-out, this legislation simply puts us on a level playing field with the various larger firms that have already been granted such exemptions. I thank Senator Markey for introducing this bill and encourage others to support his efforts."

The Small Business Liberation 2.0 Act is also endorsed by Small Business for America's Future (SBAF) and Women Impacting Public Policy (WIPP).

Ranking Member Markey is leading the fight to deliver real relief for America's small businesses and workers struggling because of Trump's reckless economic policies.<_u13a_p>

• Last week, Ranking Member Markey sent a letter to Trump administration officials renewing his call for a tariff refund process and demanding an investigation into reports that Wall Street traders are taking advantage of Main Street by paying America's small businesses pennies on the dollar for tariff rebates in the absence of an official refund process.<_u13a_p>

• In February, Ranking Member Markey introduced the Tariff Refund Act of 2026 with Senate Finance Committee Ranking Member Ron Wyden (D-Ore.) and Senate Foreign Relations Committee Ranking Member Jeanne Shaheen (D-N.H.) to require full refunds of Trump's illegal tariffs after they were struck down by the Supreme Court.<_u13a_p>
• Earlier in February, Ranking Member Markey applauded the Supreme Court's 6-3 decision to strike down Trump's illegal tariffs, held a press conference with Massachusetts small business owners, and called for immediate refunds for America's small businesses.<_u13a_p>
• Previously, Ranking Member Markey released a report detailing how Trump's affordability crisis, including his devastating tariffs, are hurting Main Streets and working families across America.<_u13a_p>
• In December, Ranking Member Markey held a press conference on the affordability crisis facing American small businesses and released new state-by-state data on total tariffs paid by small businesses from March to September 2025.<_u13a_p>
• In November, Ranking Member Markey sent a letter to Small Business Administration (SBA) Administrator Kelly Loeffler, Secretary of Commerce Howard Lutnick, U.S. Trade Representative Jamieson Greer, and Acting Chair of the Council of Economic Advisors (CEA) Pierre Yared to renew his call for an equitable tariff refund process for small businesses.<_u13a_p>
• Earlier in November, Ranking Member Markey held a press conference to highlight the voices of small business owners impacted by Trump's devastating tariffs, and to call on the Supreme Court to strike down the tariffs.<_u13a_p>
• Previously, Ranking Member Markey held a press conference to highlight the voices of small business owners impacted by Trump's tariffs. Ranking Member Markey introduced the Small Business RELIEF Act in September 2025, which exempts small businesses from the "Liberation Day" tariffs and requires the President to provide refunds to small businesses who have paid them.<_u13a_p>
• In August, Ranking Member Markey sent a letter to Small Business Administration (SBA) Administrator Kelly Loeffler, Secretary of Commerce Howard Lutnick, U.S. Trade Representative Jamieson Greer, and CEA Chair Stephen Miran, calling on their respective agencies to establish and publicize procedures for refunding tariffs to American businesses.<_u13a_p>
• In May, Ranking Member Markey first attempted to pass the Small Business Liberation Act, legislation that would exempt small businesses from the broad, reckless global tariffs imposed by the Trump administration. Ranking Member Markey returned to the Senate floor in an effort to pass the Small Business Liberation Act in August. Republicans blocked his legislation on the Senate floor on both occasions.<_u13a_p>

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