By Chuck Casto from Alignable.
Republished with permission.
The latest trade policy shifts coming out of the new administration are making U.S. small business owners increasingly worried about their financial future.
According to a new report from Alignable, the largest online networking platform for small businesses, 41% of small business owners anticipate revenue losses, with 18% expecting significant declines as a direct result of current and future tariffs.
This marks an 11-percentage-point increase from 30% last month, highlighting a sharp rise in concern.
Few see a silver lining, as only 19% of small businesses expect a revenue boost (up only 1%), and fewer than half of them (9%) anticipate a significant increase.
Meanwhile, the percentage of business owners who believe tariffs will have no impact has plummeted from 40% to 26%, reflecting growing fear among entrepreneurs who were previously unfazed by trade policy changes.
These findings come from Alignable’s March Tariff Report, based on 5,288 responses from randomly selected U.S. small business owners polled between February 7 and February 28, 2025.
“Small business owners generate 44% of the U.S. GDP, making them a vital pillar of our economy,” said Eric Groves, Alignable’s CEO and Co-Founder. “But as concerns over new tariffs intensify, their confidence is eroding quickly. We’re seeing a growing sense of uncertainty among business owners who expressed strong optimism for 2025 just a few months ago. Instead of focusing on growth, now they’re just trying to stay afloat—delaying investments, freezing hiring, and reconsidering expansion plans. Policymakers must prioritize small business owners when shaping these decisions, as there could be a ripple effect that goes way beyond Main Street, destabilizing the entire U.S. economy.”
Concerns Spike Across Many States
According to Alignable’s March Tariff Report, small business owners in most states are more worried than they were just a month ago, as seen in this data:
States where SMB owners are most concerned about declining revenue include:
- Georgia (51%)
- Minnesota (49%)
- Colorado (48%)
- Illinois (47%)
- California, Massachusetts, and Washington State (46%)
- New York (45%).
States where fewer small business owners are expressing concern include:
- Texas (37%)
- Virginia (36%)
- Arizona and New Jersey (35%)
- Michigan (32%)
- Wisconsin (26%).
Significant Shifts Also Reported in Key Sectors
As the percentage of small business owners expecting financial trouble from tariffs rose from 30% last month to 41% now, concerns have also escalated across key industries. Here’s a snapshot of the overall landscape:
One of the most striking shifts comes from manufacturers, who were previously more optimistic. In last month’s report, more manufacturers saw the potential for increased revenue (34%) than those who expected a decline (26%).
However, in Alignable’s March Tariff Report, that trend has reversed.
Now, more than half of manufacturers (54%) say they fear financial trouble from tariffs, marking a 29-percentage-point increase over February’s study.
Looking more closely at the numbers, only 25% now expect sales to increase, a nine-point drop from 34% last month.
In addition to manufacturers, several other small business sectors are increasingly concerned about revenue declines due to tariffs:
- 63% of architects/interior designers (up 15 points from 48%)
- 54% of retailers (up 20 points from 34%)
- 51% in science/technology (up 12 points from 39%)
- 49% in transportation (up 19 points from 30%)
- 45% of restaurant owners (up 12 points from 33%)
- 43% in the automotive industry (up 19 points from 24%).
While worries over sales declined slightly in the health and wellness industry, many small business owners in other sectors remain largely unaffected by tariffs. A significant percentage expect no impact, including:
- Insurance agents (54%)
- Roofers (53%)
- Professional development trainers (50%).
Real Voices from Small Business Owners
While the statistics provide a clear picture of shifting sentiment, the words of small business owners capture the emotional weight of these concerns—revealing both sides of the issue.
- Pro-Tariff Perspective:
- “I support them because they force people to buy more U.S. products, like mine!”
- “Tariffs should encourage local commerce, which is what we want.”
- “We’ll experience a little pain at first, but these tariffs will help put us on the right track to a stronger economy.”
- Cautious Optimism & Uncertainty:
- “To benefit our country, I believe imposing tariffs is a good thing. But for me, I’m concerned since I make my living importing from China.”
- Against Tariffs, Fearing Economic Fallout:
- “I think they will be devastating to our overall economy.”
- “This is a horrible situation. It will bring us into a recession.”
- “I’m already feeling the effects of higher prices—my business is suffering.”
- “If Canada places a 25% tariff on imported goods like my gazebos and pergolas, I might go out of business.”
For additional quotes and more detailed data on other sectors or states, please reach out to chuck@alignable.com. To review past poll results, visit the Alignable Research Center, which chronicles past monthly reports that amplify the needs and triumphs of small businesses across North America.
About Alignable
Alignable is the largest small business networking platform in North America, connecting over 9 million business owners across 35,000+ communities. Designed to help entrepreneurs network smarter, Alignable makes it easy to build trusted relationships and grow through referrals and shared expertise. Powered by Alignable 360, an intelligent business relationship engine, the platform provides valuable connection insights, enhances business visibility, expands networks, and fosters meaningful growth. For more information, visit www.alignable.com.
As Head of PR & a former SMB owner himself, Chuck Casto is a small business crusader. He’s deeply invested in letting national media and social influencers know what’s really happening on Main Street. From promoting our polls, to running contests celebrating member achievements, to acting as managing editor of the newsletter, Chuck’s one of our chief storytellers. Before Alignable, he led branding, PR & social campaigns for companies from Haagen-Dazs to Harley-Davidson & Wendy’s to Wayfair. Prior to PR, Chuck was a TV reporter in NY, and an editor for local Gannett newspapers. Chuck holds a B.A. from Brown & an M.S.J. from Northwestern.
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Tags: Accounting, economy, Small Business, tariffs, trade policies
