FOR IMMEDIATE RELEASE
April 23, 2026
Contact: minority_jecpress@jec.senate.gov

NEW REPORT: President Trump’s Tariffs Crush Small Manufacturers, Threaten U.S. Economy and National Security

Report includes new data on the impact of Trump’s tariffs on small manufacturers and spotlights experiences of businesses in New Hampshire and across the country

WASHINGTON – The Joint Economic Committee - Minority issued a report today that details the ways in which President Trump’s reckless tariffs have inflicted harm on the small businesses that make up the American manufacturing base. In his inauguration speech, President Trump promised to make the U.S. “a manufacturing nation once again.” Yet more than a year into his second term, the Trump administration’s policies have done the opposite – resulting in a loss of more than 100,000 manufacturing jobs and a significant decline in small manufacturers’ profit margins.

“Small businesses are at the core of American manufacturing, but President Trump’s reckless tariffs have significantly burdened them with rising costs,” said Senator Hassan, Ranking Member of the Joint Economic Committee. “Small manufacturers across the country have had to grapple with steep costs for key materials and ongoing uncertainty, which make it harder for them to grow their businesses, meet production needs, and contribute to supply chains here at home.”

Key new data in the Committee report include:

• Small manufacturers’ profit margins were 11 percent lower in the nine months that followed “Liberation Day” compared to the same period in 2024. That decline brought their profitability to an even lower level than was seen during the pandemic.
• Among small manufacturers, those focused on durable goods like vehicles, equipment, and electronics saw their profit margins decline by 24 percent, likely because their inputs have been hit especially hard by tariffs.
• Between 2024 and 2025, the manufacturing sector saw a nearly 18 percent decline in applications to form the types of new manufacturing businesses that the Census Bureau identifies as most likely to hire employees.

The report also includes testimonials from multiple small manufacturers that emphasize the severe impact of President Trump’s tariffs on their businesses. For instance, the report includes, “One small manufacturer in New Hampshire that supplies components to the aerospace and medical equipment industries noted that its sales decreased by more than 20 percent in 2025 compared to the year before.”

In addition, the report details that the new challenges under Trump also threaten national security and U.S. competitiveness. These businesses often produce items that are then used by larger manufacturers to assemble more complex products like cars and electronics. In some cases, these smaller firms may be the only source for certain key components, and these companies’ economic challenges could then ultimately lead to costly production disruptions – which in turn can create room for competitors like China to overtake U.S. leadership in industries of the future.

Read the full report here.

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