Small business owners across the US say rising tariffs, health insurance premiums, and energy costs are creating a growing affordability crisis. Many report difficulty raising wages or expanding benefits as expenses continue to climb.
Business owners say uncertainty over where US tariff rates will settle has made it harder to plan and forecast costs. The average effective US tariff rate now stands at 16.8 percent, the highest since the 1930s, according to the Yale Budget Lab.
Some small business owners say they are facing their own affordability crisis because of higher tariff, health insurance and energy costs. https://t.co/GeZ3IDtmht
— CBS News (@CBSNews) December 18, 2025
A separate analysis from the Center for American Progress found small business importers paid about $25,000 more per month on average due to tariffs this year.
Health insurance costs are also a major concern, especially with enhanced Affordable Care Act subsidies set to expire at the end of 2025.
New CAP analysis estimates that US small businesses are now paying ~$40k per MONTH in new tariff costs ($25k-$30k more than last year), PLUS thousands more just to comply with the complex and ever-changing tax system.
— Scott Lincicome (@scottlincicome) December 17, 2025
Brutal. pic.twitter.com/7xW8HtDlZ5
Analysts warn premiums could rise sharply for millions of self-employed Americans and small business owners.
Republican lawmakers argue inflation and regulation under prior Democratic control drove costs higher, while citing recent tax cuts and regulatory rollbacks under President Donald Trump as relief measures.
The Supreme Court is expected to rule soon on the legality of the tariffs.
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TIPP Staff
