News / US Democrats seek reprieve for SMEs with tariff relief bill

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Senate Democrats are looking to push through a bill to protect US small businesses from the Trump administration’s agenda of global trade reform, but for many the focus remains on a pending Supreme Court decision.

Democratic leader Chuck Schumer was joined by nine other party senators in bringing forth the Small Business Relief Act which, if approved, would exempt SMEs from global baseline and reciprocal tariffs and provide refunds to SMEs which were forced to pay them.

Senator Schumer said: “Tariffs are raising costs, pushing away tourists, slowing down manufacturing, and forcing many businesses to close their doors altogether. Congress must pass [this] Act to protect our economy and small businesses across the country.”

The onset of the tariff policy, imposed by executive order – and subsequently facing its day in court amidst claims the president illegally bypassed Congress – has generated major unease among US SMEs, with a Freightos survey finding half experienced a 20% in costs as a result.

Responding to news of the Small Business Relief Act, Brandon Fried, director of the Air Forwarders Association, told The Loadstar refunding tariffs paid by SMEs would “certainly provide welcome relief,” noting the struggles many are facing.

He continued: “Often SMEs are being forced to absorb these costs themselves rather than passing them along to consumers. That kind of hidden tax has real consequences for jobs, investment, and competitiveness.

“It’s an early proposal, and while the political path is uncertain it reflects growing recognition that SMEs have been disproportionately affected by the tariff policies. Whether legislation or limited executive action, any steps to ease the tariff burden should be considered seriously.”

Another source said a similar, albeit bipartisan, bill was in the works, with discussions also underway around several measures that Mr Fried believes have a better chance of near-term success, including targeted tariff exclusions, administrative waivers, and customs drawback.

Even so, Mr Fried is very much in the minority of those The Loadstar spoke to, with several sources considering the bill as nothing more than “symbolic”, and instead stating that all hope for SMEs for any form of tariff reprieve was now in the hands of the Supreme Court.

Last week, the US’s top court agreed to hear arguments over the tariff programme’s legality, after the president himself petitioned it to act following a lower court’s verdict that he exceeded its authority by invoking the International Emergency Economic Powers Act (IEEPA).

A brief announcement from the Court stated: “The motion to expedite and the petition for a writ of certiorari are GRANTED. The cases will be set for argument in the first week of the November 2025.”

President Trump’s tariffs have depended on an interpretation of an IEEPA provision stating that they can be used “to deal with any unusual and extraordinary threat, which has its source in whole or substantial part outside the US, to the national security, foreign policy or economy”.

However, the act requires “the President consult with Congress ‘in every possible instance’ before exercising any of the authorities granted under IEEPA,” with the US Court of Appeals determining that the tariffs had run afoul of the “major questions doctrine”.

Speaking about shipper clients, one forwarding source told The Loadstar that “all eyes” were now on the Supreme Court, a position echoed by chief marketing officer of Freightos, Eytan Buchman, who called the court’s ruling the “real development worth watching”.

“If the Court rules that these tariffs were imposed illegally, the critical question becomes what refund mechanism, if any, would be available to importers?” Mr Buchman told The Loadstar, noting that the legal challenges “carry far more weight in terms of actual financial relief”.

He continued: “Trump has already told US businesses, big and small, that there is a bumpy road ahead, but that they will get through it for the better. This suggests that there will be no meaningful reprieve from the administration.”

Even were the bill to pass, he said: “Defining who qualifies as an SME is itself a major hurdle: do we go by headcount, annual revenue, profit, or some hybrid? Without clear parameters, the bill risks being more of a political statement than a workable policy.”