President Donald Trump has vowed that April 2 will be “Liberation Day,” as he plans to implement wide ranging tariffs on foreign imports. However, some are wondering if the tariffs might be less liberating and more of a strain for small businesses.
Leah Long, a member of the Louisiana chapter of the National Federation of Independent Businesses, spoke about the impact small businesses may have if Trump’s tariffs go through while speaking with WWL News Radio.
Long shared that with so much still up in the air, after Trump has pushed off implementing his tariffs twice, many are starting to worry about how his actions could impact their businesses.
“We have heard from a few small business owners that are currently impacted, or they’re concerned,” Long said. “On the federal level, we have heard some kind of complaint about tariffs.”
She says that most of what’s being shared involves uncertainty around tariffs but also a 20% small business tax deduction that could impact them more immediately.
“Right now, their biggest issue is actually the 20% small business deduction.… That’s their biggest concern right now because if that’s not reinstated, it doesn’t really matter what goes on with the tariffs because they’re going to be hit with a huge tax increase if it isn’t reinstated permanently,” Long said.
That deduction was put in place by Trump during his first term, and is set to expire this year. Long notes that while much is still up in the air on how tariffs will impact businesses, the expiring tax deduction would be a sure hit.
She added that while “it’s already hard enough to own and operate a small business in the current economy, and has been for quite a while, that would be devastating for these small business owners.”
The economy remains a top priority for Americans across the country, and as Trump continues to implement his policies, many worry that consumers will bear the weight of his trade war.
Walter Lane, an associate professor of economics & finance at the University of New Orleans, also weighed in on the impending tariffs, telling WWL News Radio that with Trump’s vague remarks of issuing reciprocal tariffs, several things are still on the table.
When it comes to the impact tariffs will have on consumers, Lane says the brunt will fall on consumers despite Trump’s claims they won’t.
“The question is, who pays the tax?” Lane said. “For the most part, it’s going to be U. S. citizens. Now, Trump likes to lower taxes in general. He argues about that, but these are taxes he wants to raise. And he seems to argue that they’re going to be paid by the foreign countries, but there’s no evidence of that.
They might pay a little bit of it, but there’s no evidence that they will pay the majority of the taxes. It will be U.S. consumers that pay the taxes.”
Trump is expected to announce his tariff plans at some point Wednesday.