Connect with us

Business

$25,000 per month: the cost of Trump tariffs on small business importers, revealed

Published

on



A stark new economic analysis reveals the Trump administration’s trade policies are extracting a heavy toll from Main Street, with small-business importers paying approximately $25,000 more per month in tariff costs since April 2025. The report, published Dec. 17 by the Center for American Progress (CAP), a left-wing think tank, details how a “chaotic approach” to trade and the elimination of key import exceptions have created a financial crisis for entrepreneurs during the critical holiday season.

According to the analysis by Michael Negron and Mimla Wardak, the administration’s “Liberation Day” tariff announcement triggered a sharp increase in duties collected from American businesses. From April through September 2025, CAP estimated, the roughly 236,000 small-business importers in the U.S. paid an average of more than $151,000 in additional tariffs compared to the same period in 2024. (CAP cited the centrist Chamber of Commerce’s research on the small-business importer sector of the economy.)

“The Trump administration’s broad, costly, and frequently shifting policies threaten to undermine one of the strongest engines of the American economy,” Negron said in a statement to Fortune. “A season of opportunity for small businesses has turned into one of uncertainty.”

The burden is not limited to larger enterprises. The report found “mom-and-pop” businesses—those with fewer than 50 employees—paid, on average, over $86,000 more per business during this six-month window than they did the previous year. The outlook for the immediate future is equally grim: CAP projects that if current monthly costs persist, the typical small business will face a tariff bill exceeding $500,000 in 2026, potentially resulting in additional layoffs, bankruptcies, and delayed investments. For the holidays, CAP concludes the tariffs are a “costly lump of coal” in American small business’ collective, proverbial Christmas stocking.

Administrative red tape stifles growth

Beyond direct financial costs, small business owners are struggling with a sudden increase in bureaucratic red tape. The administration eliminated the de minimis exception, which previously allowed low-value shipments to enter the U.S. without duties or extensive paperwork. This policy change has forced businesses to prepay new tariff rates and complete complex customs forms for millions of shipments that were formerly exempt.

Jyoti Jaiswal, founder of OMSutra, a small business selling sustainable fashion and home goods, told CAP the changes have forced her to consolidate shipments and block more capital upfront. Jaiswal noted her company now spends 10 to 15 hours on tariff-related administrative work per shipment, up from eight to 10 hours previously, preventing her from passing costs on to consumers without losing competitiveness.

Similarly, Legrand Lindor, CEO of LMI Textiles, told CAP his medical supply company went from spending zero time on tariff paperwork to spending four to five hours per transaction. Facing a 20% increase in product costs—roughly $80,000 in additional spending—Lindor was forced to scrap plans to open a new warehouse in 2025.

The rising costs appear to be cooling the labor market for small firms. Data from payroll provider ADP shows that businesses with fewer than 50 employees laid off 120,000 workers in November 2025, the highest number of small-business layoffs in five years.

While the administration claimed foreign nations would pay these costs, the report emphasizes tariffs are taxes paid by American importers. Goldman Sachs calculated that of August 2025, businesses had absorbed 51% of the cost of tariffs, though they had passed 37% onto consumers through higher prices. A survey by Small Business Majority from late 2025 indicated 74% of small-business owners are now worried about their business surviving the next 12 months.

Compounding financial pressures

The tariff crisis coincides with other financial headwinds. The report highlights the expiration of enhanced Affordable Care Act premium tax credits in 2026 threatens to double premiums for millions of entrepreneurs and small-business employees.

With the holiday season typically accounting for at least one-quarter of annual revenue for retailers, the convergence of high tariffs and administrative confusion has delivered what the report describes as “a decidedly unhappy holiday season” for the nation’s 236,000 small-business importers. Without a change in policy, these businesses face the prospect of escalating costs and reduced investment heading into the new year.

For this story, Fortune journalists used generative AI as a research tool. An editor verified the accuracy of the information before publishing.

This story was originally featured on Fortune.com



Source link

Continue Reading

Business

Trump claims victory in drug-smuggling crackdown, but key details remain a mystery

Published

on



President Donald Trump has indicated that the U.S. has “hit” a dock facility along a shore as he wages a pressure campaign on Venezuela, but the U.S. offered few details.

Trump initially seemed to confirm a strike in what appeared to be an impromptu radio interview Friday, and when questioned Monday by reporters about “an explosion in Venezuela,” he said the U.S. struck a facility where boats accused of carrying drugs “load up.”

“There was a major explosion in the dock area where they load the boats up with drugs,” Trump said as he met in Florida with Israeli Prime Minister Benjamin Netanyahu. “They load the boats up with drugs, so we hit all the boats and now we hit the area. It’s the implementation area. There’s where they implement. And that is no longer around.”

It is part of an escalating effort to target what the Trump administration says are boats smuggling drugs bound for the United States. It moves closer to shore strikes that so far have been carried out by the military in international waters in the Caribbean Sea and eastern Pacific Ocean.

Trump declined to say if the U.S. military or the CIA carried out the latest strike or where it occurred. He did not confirm it happened in Venezuela.

“I know exactly who it was, but I don’t want to say who it was. But you know it was along the shore,” Trump said.

Trump first referenced the strike on Friday, when he called radio host John Catsimatidis during a program on WABC radio and discussed the U.S. strikes on alleged drug-carrying boats. The attacks have killed at least 105 people in 29 known strikes since early September.

“I don’t know if you read or saw, they have a big plant or a big facility where they send the, you know, where the ships come from,” Trump said. “Two nights ago, we knocked that out. So, we hit them very hard.”

Trump did not offer any additional details in the interview.

Defense Secretary Pete Hegseth or one of the U.S. military’s social media accounts has in the past typically announced every boat strike in a post on X, but there has been no post of any strike on a facility.

The Pentagon on Monday referred questions to the White House, which did not immediately respond to a message seeking more details. The press office of Venezuela’s government did not immediately respond to a request for comment on Trump’s statement.

Trump for months has suggested he may conduct land strikes in South America, in Venezuela or possibly another country, and in recent weeks has been saying the U.S. would move beyond striking boats and would strike on land “soon.”

In October, Trump confirmed he had authorized the CIA to conduct covert operations in Venezuela. The agency did not immediately respond to a message seeking comment Monday.

Along with the strikes, the U.S. has sent warships, built up military forces in the region, seized two oil tankers and pursued a third.

The Trump administration has said it is in “armed conflict” with drug cartels and seeking to stop the flow of narcotics into the United States.

Venezuelan President Nicolás Maduro has insisted the real purpose of the U.S. military operations is to force him from power.

White House chief of staff Susie Wiles said in an interview with Vanity Fairpublished this month that Trump “wants to keep on blowing boats up until Maduro ‘cries uncle.’”



Source link

Continue Reading

Business

Homeland Security investigates Minnesota for apparent fraud costing taxpayers up to $9 billion

Published

on



Federal Homeland Security officials were conducting a fraud investigation on Monday in Minneapolis, Department of Homeland Security Secretary Kristi Noem said.

The action comes after years of investigation that began with the $300 million scheme at the nonprofit Feeding Our Future, for which 57 defendants in Minnesota have been convicted. Prosecutors said the organization was at the center of the country’s largest COVID-19-related fraud scam, when defendants exploited a state-run, federally funded program intended to provide food for children.

federal prosecutor alleged earlier in December that half or more of the roughly $18 billion in federal funds that supported 14 programs in Minnesota since 2018 may have been stolen.

Minnesota Gov. Tim Walz said then that fraud will not be tolerated and that his administration “will continue to work with federal partners to ensure fraud is stopped and fraudsters are caught.”

Noem on Monday posted a video on the social platform X showing DHS officers going into an unidentified business and questioning the person working behind the counter. Noem said that officers were “conducting a massive investigation on childcare and other rampant fraud.”

“The American people deserve answers on how their taxpayer money is being used and ARRESTS when abuse is found,” U.S. Immigration and Custom Enforcement posted.

The action comes a day after FBI Director Kash Patel said on X that the agency had “surged personnel and investigative resources to Minnesota to dismantle large-scale fraud schemes exploiting federal programs.”

Patel said that previous fraud arrests in Minnesota were “just the tip of a very large iceberg.”

President Donald Trump has criticized Walz’s administration over the fraud cases to date.

In recent weeks, tensions have been high between state and federal enforcement in the area as the Trump administration’s immigration crackdown focused on the Somali community in the Minneapolis-St. Paul area, which is the largest in the country.

Among those running schemes to get funds for child nutrition, housing services and autism programs, 82 of the 92 defendants are Somali Americans, according to the U.S. Attorney’s Office for Minnesota.

Walz spokesperson Claire Lancaster said that the governor has worked for years to “crack down on fraud” and was seeking more authority from the Legislature to take aggressive action. Walz has supported criminal prosecutions and taken a number of other steps, including strengthening oversight and hiring an outside firm to audit payments to high-risk programs, Lancaster said.



Source link

Continue Reading

Business

Down Arrow Button Icon

Published

on



President Donald Trump warned Iran against reconstituting its nuclear program Monday as he welcomed Israeli Prime Minister Benjamin Netanyahu to his home in Florida for wide-ranging talks.

The warning comes after Trump has insisted that Tehran’s nuclear capabilities were “completely and fully obliterated” by U.S. strikes on key nuclear enrichment sites in June. But Israeli officials have been quoted in local media expressing concern about Iran rebuilding its supply of long-range missiles capable of striking Israel.

“Now I hear that Iran is trying to build up again,” Trump told reporters soon after Netanyahu arrived at his Mar-a-Lago estate. “And if they are, we’re going to have to knock them down. We’ll knock them down. We’ll knock the hell out of them. But hopefully that’s not happening.”

Trump’s warning to Iran comes as his administration has committed significant resources to targeting drug trafficking in South America and the president looks to create fresh momentum for the U.S.-brokered Israel-Hamas ceasefire. The Gaza deal is in danger of stalling before reaching its complicated second phase that would involve naming an international governing body and rebuilding the devastated Palestinian territory.

Iran has insisted that it is no longer enriching uranium at any site in the country, trying to signal to the West that it remains open to potential negotiations over its atomic program. But Netanyahu was expected to discuss with Trump the need to potentially take new military action against Tehran just months after launching a 12-day war on Iran.

The Iranian mission to the United Nations did not immediately respond to a request for comment on Trump’s warning.

Trump criticized Iran anew for not making a deal to completely disarm its nuclear program ahead of the U.S. and Israeli strikes earlier this year.

“They wish they made that deal,” Trump said.

Gaza ceasefire progress has slowed

Trump, with Netanyahu by his side, said he wants to get to the second phase of the Gaza deal “as quickly as we can.”

“But there has to be a disarming of Hamas,” Trump added.

The ceasefire between Israel and Hamas that Trump championed has mostly held, but progress has slowed recently. Both sides accuse each other of violations, and divisions have emerged among the U.S., Israel and Arab countries about the path forward.

The truce’s first phase began in October, days after the two-year anniversary of the initial Hamas-led attack on Israel that killed about 1,200 people. All but one of the 251 hostages taken then have been released, alive or dead.

The Israeli leader, who also met separately with Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, has signaled he is in no rush to move forward with the next phase as long as the remains of Ran Gvili are still in Gaza.

Gvili’s parents met with Netanyahu as well as Rubio, U.S. envoy Steve Witkoff and the president’s son-in-law, Jared Kushner, in Florida on Monday. The Gvilis are expected to meet with Trump later in the day, according to the Hostages and Missing Families Forum, a group that advocates for families of abductees of the Oct. 7, 2023, attack.

“They’re waiting for their son to come home,” Trump said of the family of the young police officer known affectionately as “Rani,”

Next phase is complex

The path ahead is certainly complicated.

If successful, the second phase would see the rebuilding of a demilitarized Gaza under international supervision by a group chaired by Trump and known as the Board of Peace. The Palestinians would form a “technocratic, apolitical” committee to run daily affairs in Gaza, under Board of Peace supervision.

It further calls for normalized relations between Israel and the Arab world and a possible pathway to Palestinian independence. Then there are thorny logistical and humanitarian questions, including rebuilding war-ravaged Gaza, disarming Hamas and creating a security apparatus called the International Stabilization Force.

Much remains unsettled

Two main challenges have complicated moving to the second phase, according to an official who was briefed on those meetings. Israeli officials have been taking a lot of time to vet and approve members of the Palestinian technocratic committee from a list given to them by the mediators, and Israel continues its military strikes.

Trump’s plan also calls for the stabilization force, proposed as a multinational body, to maintain security. But it, too, has yet to be formed. Whether details will be forthcoming after Monday’s meeting is unclear.

A Western diplomat said there is a “huge gulf” between the U.S.-Israeli understanding of the force’s mandate and that of other major countries in the region, as well as European governments.

All spoke on the condition of anonymity to provide details that haven’t been made public.

The U.S. and Israel want the force to have a “commanding role” in security duties, including disarming Hamas and other militant groups. But countries being courted to contribute troops fear that mandate will make it an “occupation force,” the diplomat said.

Hamas has said it is ready to discuss “freezing or storing” its arsenal of weapons but insists it has a right to armed resistance as long as Israel occupies Palestinian territory. One U.S. official said a potential plan might be to offer cash incentives in exchange for weapons, echoing a “buyback” program Witkoff has previously floated.

Trump makes case once again for Netanyahu pardon

The two leaders, who have a long and close relationship, heaped praise on each other. Trump also tweaked the Israeli leader, who at moments during the war has raised Trump’s ire, for being “very difficult on occasion.”

Trump also renewed his call on Israeli President Isaac Herzog to grant Netanyahu, who is in the midst of a corruption trial, a pardon.

Netanyahu is the only sitting prime minister in Israeli history to stand trial, after being charged with fraud, breach of trust and accepting bribes in three separate cases accusing him of exchanging favors with wealthy political supporters.

Trump has previously written to Herzog to urge a pardon and advocated for one during his October speech before the Knesset. He said Monday that Herzog has told him “it’s on its way” without offering further details.

“He’s a wartime prime minister who’s a hero. How do you not give a pardon?” Trump said.

Herzog’s office said in a statement that the Israeli president and Trump have not spoken since the pardon request was submitted, but that Herzog has spoken with a Trump representative about the U.S. president’s letter advocating for Netanyahu’s pardon.

“During that conversation, an explanation was provided regarding the stage of the process in which the request currently stands, and that any decision on the matter will be made in accordance with the established procedures,” the Israeli president’s office. “This was conveyed to President Trump’s representative, exactly as President Herzog stated publicly in Israel.”



Source link

Continue Reading

Trending

Copyright © Miami Select.