Senator Kirsten Gillibrand and several top Senate Democrats are backing new legislation aimed at giving small businesses a financial break from tariffs imposed by President Donald Trump.
The bill — called the Small Business RELIEF Act — would refund small businesses for tariff costs they’ve already paid and exempt them from future tariffs tied to Trump’s global baseline and reciprocal trade policies.
“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,” Gillibrand said in a statement released September 15. “Millions of small businesses are already struggling to keep up with rising costs.”
The legislation comes as U.S. consumers face the highest average tariff rate since 1934. A recent court ruling declared Trump’s so-called “Liberation Day” tariffs illegal, but the tariffs remain in effect while the Supreme Court prepares to hear the case in November.
Who’s supporting the bill?
Gillibrand introduced the measure alongside Senate Minority Leader Chuck Schumer and Senators Ed Markey, Angela Alsobrooks, Richard Blumenthal, Martin Heinrich, John Hickenlooper, Mazie Hirono, Mark Kelly, and Mark Warner.
Schumer said the tariffs are doing lasting damage.
“Small businesses are feeling the brunt of the Trump administration’s economic carnage,” he said. “Congress must pass the Small Business RELIEF Act to protect our economy and small businesses across the country.”
Supporters say the bill would benefit millions of small businesses across the country — including the 2.3 million operating in New York — many of which have seen rising costs due to the tariffs.
What the bill would do
- Exempt small businesses from global baseline and reciprocal tariffs
- Refund tariff payments made by small businesses within 90 days of the bill’s enactment
- Protect small business margins from sudden policy shifts
The bill also has the support of national small business advocacy groups, including the Main Street Alliance, National Small Business Association, and Small Business Majority. Leaders from these organizations say the retroactive refunds would be a lifeline.
“Small businesses were the ones hit hardest by the Trump tariffs,” said Richard Trent, Executive Director of Main Street Alliance. “Refunding small businesses would put money back into local economies, help create jobs, and level the playing field.”
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