Pappas, Morrison Introduce Legislation to Exempt Small Businesses from Trump’s Tariffs

Today Congressman Chris Pappas, a small business owner, and Congresswoman Kelly Morrison, a member of the House Small Business Committee, introduced the Small Business Liberation Act in the House. This legislation, which was introduced in the Senate last month, would exempt the more than 34 million U.S. small businesses from President Trump’s catastrophically high tariffs enacted on April 2, 2025, which are effectively a national sales tax. Highlighting the urgent need for this legislation, Pappas and Morrison held a press conference with small businesses from across the country, including Mark Carpenter, founder of New Hampshire small business GenTent.

Small businesses across the country have been raising the alarm that the Trump administration’s chaotic, costly, and unpredictable tariff war will put them out of business in a matter of weeks or months if nothing is done. New Hampshire exports accounted for 7% of the state’s gross domestic product in 2023, the highest percentage of exports of any New England state, meaning that New Hampshire businesses are more vulnerable to retaliatory tariffs. 

Earlier this week Congressman Pappas met with GenTent owner Mark Carpenter at his small business of just 12 employees to hear about the impact of tariffs on his business. It’s estimated that because of tariffs the cost of a new part his business is producing will go up by 30%, costing the company another $100,000 just in tariffs.

“This administration’s reckless tariffs are effectively a national sales tax on businesses and families. I’ve heard directly from New Hampshire businesses about how deeply these tariffs will hurt their bottom lines. That’s why I’m pushing legislation that would rein in the President’s indiscriminate, wide-sweeping tariffs announced earlier this year,” said Congressman Chris Pappas. “The Small Business Liberation Act would exempt all small businesses from the tariffs announced by the Trump administration on Liberation Day. While the President and Republicans in Congress are turning their back on working families, I remain committed to continuing to fight to lower costs, support small businesses, and strengthen our economy.”

“Small businesses across the country have made clear: Trump’s tariffs are posing an existential threat to their business,” said Congresswoman Kelly Morrison. “Today, we’re introducing legislation to give them the immediate relief they need to survive. Article 1 of the Constitution gives Congress the authority to levy tariffs – and it’s time Congress reclaims its power and does its job. This bill has now been introduced in the House and the Senate – and we need the Republican majority to stand up for America’s 34 million small businesses and bring this to a vote immediately. Our small business owners don’t have the luxury of time – we need to act now.”

This legislation is endorsed by Small Business Majority and Main Street Alliance.

“Small Business Majority’s research found that 53% of small businesses are concerned about tariffs negatively impacting their business and 77% are concerned about having a negative impact on the U.S. economy as a whole. Small Business Majority’s research found that 53% of small businesses are concerned about tariffs negatively impacting their business and 77% are concerned about having a negative impact on the U.S. economy as a whole,” said John Arensmeyer, Founder and CEO of Small Business Majority. “These concerns aren’t theoretical – millions of small firms are struggling right now with increased costs, finding new sources of supplies and navigating the uncertainty of tariffs that are on one day and put on hold the next. Small businesses have nowhere else to turn for help but Congress, and they need lawmakers to step in and stop this paralyzing and destructive cycle before irreparable harm is done to our nation’s job creators."

“Main Street Alliance members from across the US have been contacting our team about the real impact of tariffs on their businesses. 81.5% of respondents to our recent survey indicated that they will raise prices on consumers to offset the costs from tariffs. 31.5% of respondents indicated that they would lay off employees as a result of the tariffs. The continued unpredictability, self-dealing, and conflicting rationale for the trade war will hollow out Main Street and large Corporations will pick up the scraps. That’s why MSA strongly supports the Small Business Liberation Act. Let’s get it done,” said Richard Trent, Main Street Alliance Executive Director.

Watch the press conference here. 

Read the full text of the bill here.

Background:  

Pappas has loudly and strongly opposed President Trump’s sweeping tariffs on New Hampshire’s #1 trading partner, Canada, and U.S. allies. In April, Pappas joined colleagues to highlight the negative impact President Trump’s widespread tariffs will have on New Hampshire’s small business community and how they will raise costs for Granite Staters, calling on the administration to reverse course. Pappas has signed two discharge petitions to force a vote on legislation to overturn the Administration’s harmful tariffs on Mexico and Canada, the U.S.’s two biggest trading partners. He is also a cosponsor of the Prevent Tariffs Abuse Act, which amends the International Emergency Economic Powers Act to explicitly state that the authority granted to the President under the Act does not include the authority to impose duties, tariffs, or quotas on imports to the US.