Gillibrand, Senate Democrats Introduce Legislation To Refund Small Businesses For Trump Tariffs

Gillibrand, Senate Democrats Introduce Legislation To Refund Small Businesses For Trump Tariffs

Sep 15, 2025

Legislation Would Help Support the 2.3 Million Small Businesses Across New York, Many of Which Are Struggling to Keep Up with Rising Costs Caused By Trump's Tariffs

U.S. Senator Kirsten Gillibrand, alongside Democratic Leader Chuck Schumer (D-NY) and Senators Ed Markey (D-MA), Angela Alsobrooks (D-MD), Richard Blumenthal (D-CT), Martin Heinrich (D-NM), John Hickenlooper (D-CO), Mazie Hirono (D-HI), Mark Kelly (D-AZ), and Mark Warner (D-VA), introduced the Small Business RELIEF Act to exempt small businesses from global baseline and reciprocal tariffs and to provide refunds to the small businesses that were forced to pay them. The senators introduced the legislation as U.S. consumers experience the highest overall tariff rate since 1934, and a recent survey found that 30% of small business owners plan to increase their prices.

On August 29, 2025, the U.S. Court of Appeals for the Federal Circuit ruled that President Donald Trump's so-called "Liberation Day" tariffs were illegal, setting the stage for small businesses to receive relief from the crushing "Liberation Day" tariffs. The Supreme Court agreed to consider whether these tariffs are legal and will hear the case in November. However, the tariffs will remain in place until the Supreme Court makes a decision.

"Small businesses are the backbone of the American economy, but they are especially vulnerable to President Trump's tariff policies that are suffocating our economy," said Senator Gillibrand. "Millions of small businesses are already struggling to keep up with rising costs. That's why I will keep fighting to push back against these reckless tariffs, so every small business has the resources and stability it needs to thrive."

"Small businesses are feeling the brunt of the Trump administration's economic carnage," said Senator Schumer. "Tariffs are raising costs, pushing away tourists, slowing down manufacturing, and forcing many businesses to close their doors altogether. Trump's disastrous economic policy must be stopped, and Congress must pass the Small Business RELIEF Act to protect our economy and small businesses across the country."

"Small businesses are the backbone of Maryland - making up 99% of businesses and employing over 1 million people in our state," said Senator Alsobrooks. "I will always fight for these businesses whether it's working to lower costs, cutting taxes, or standing up against Trump's devastating tariffs."

"Small business owners and workers should not have to bear the brunt of the Trump Administration's misguided tariffs," said Senator Blumenthal. "This legislation protects hardworking entrepreneurs, mom and pop shops, and the small businesses that are the cornerstones of our communities from the devastating economic wound of the Trump tariffs. While President Trump and Republicans in Congress are handing out massive tax breaks to the wealthy, I will continue to fight for every-day Americans and provide relief for small businesses in Connecticut and across the country."

"Small businesses shouldn't be collateral damage in Trump's reckless and illegal trade war," said Senator Hickenlooper. "As a former small business owner who's met with Colorado entrepreneurs, I know these senseless tariffs are crushing entrepreneurs and increasing prices across the board. Small businesses deserve the chance to weather this storm."

"Trump's sweeping tariffs have done nothing but wreak havoc on businessowners and entrepreneurs, hiking costs and threatening the survival of many small businesses in Hawaii and throughout the country," said Senator Hirono. "I am proud to support this legislation that would not only help to shield small businesses from these harmful tariffs, but also require the administration to rightfully compensate these businesses for any increased costs associated with them. Our small businesses are vital to the economy and they should not have to pay the price for Trump's recklessness."

"While the courts continue to battle over the legality of Trump's 'liberation day' tariffs, small businesses cannot wait and never should have been part of this terrible policy," said Senator Markey. "My Small Business RELIEF Act would not only exempt small businesses from the reckless, wide-sweeping reciprocal and global baseline tariffs, but importantly will also require the President to give refunds to small businesses who have paid these tariffs within 90 days of enactment. We must continue to show up for small businesses and ensure they are not left to bear the burden of these harmful tariffs. They need relief now."

"Trump's tariffs have hit small businesses particularly hard as they struggle to absorb the increased costs," said Senator Warner. "The Small Business RELIEF Act will help make sure that Trump's reckless taxes don't cripple small businesses in Virginia and across the country."

"Arizona's small businesses shouldn't be collateral damage in Trump's reckless trade policies. I've heard directly from business owners across the state who tell me these tariffs are driving up costs, squeezing already thin margins, and in some cases forcing them to shut their doors," said Senator Kelly. "I'm working to make sure small businesses get the refunds they're owed and aren't left to shoulder the burden of policies that make it harder to compete and grow."

"Small businesses were the ones hit hardest by the Trump-era tariffs - paying higher prices on everything from raw materials to the tools they need to keep their doors open," said Richard Trent, Executive Director of Main Street Alliance. "If the Supreme Court overturns these tariffs, the fair thing to do is refund small business owners for the extra costs they were forced to pay. They shouldn't be punished for decisions made in Washington that drove up their costs and squeezed their margins. Refunding small businesses would put money back into local economies, help create jobs, and level the playing field after years of unfair trade policy."

"Small businesses make up more than 99 percent of all U.S. companies, employ nearly half of the private-sector workforce, and contribute more than 40 percent of GDP," said Todd McCracken, President & CEO of the National Small Business Association (NSBA). "Yet, unlike their larger counterparts, they often lack the financial cushion and in-house resources to absorb sudden policy shifts. Imposing emergency tariffs without exemptions for small companies threatens their survival, undermines local economies, and weakens supply chains upon which countless communities are built. By exempting small firms from these duties and providing timely refunds, the Small Business RELIEF Act acknowledges both their unique vulnerability and their vital role in driving economic growth."

"Tariffs are placing unprecedented pressure on American small businesses, and we're encouraged to see leadership and legislation that would provide much-needed relief from these burdensome policies," said Shaundell Newsome, Co-chair of Small Business for America's Future and Founder of Sumnu Marketing in Las Vegas, Nevada. "We've heard countless stories from entrepreneurs across the country whose operating costs have abruptly increased due to tariffs and their erratic implementation, a major blow to businesses operating with tight margins and little wiggle room for error. These businesses are already making devastating choices: cutting jobs, canceling expansion plans, and struggling to keep their doors open. The retroactive relief included in the Small Business RELIEF Act could be the lifeline many small importers desperately need to recover from months of unexpected costs. Main Street is bearing the brunt of policies that failed to consider the real-world consequences for small businesses. Without action, we'll continue to see economic consequences that devastate not just individual businesses but entire communities."

"Widespread tariffs imposed on most imported goods have caused significant pain for small businesses, as evidenced by Small Business Majority's most recent polling that found 60% are experiencing higher operating costs due to tariffs," said Alexis D'Amato, Director of Government Affairs at Small Business Majority. "This is no surprise given that 26% of businesses surveyed said they import goods directly, while nearly half said they buy from American suppliers that import from other countries. Cost increases have led small businesses to take a range of drastic actions that include raising prices and pausing expansion plans. The best way to bring small businesses immediate relief is to refund import duties that they have already paid and exempt them from tariffs going forward."

In April, Senator Gillibrand announced her support for the bipartisan Trade Review Act, which would require congressional oversight of the president's implementation of tariffs. At the time, she also signed a letter to Commerce Secretary Howard Lutnick demanding that he immediately work to repeal Trump's tariffs, which will cost the average New York household approximately $2,400 this year alone.

Full text of the bill can be found here.

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