A group of Democratic senators, led by Ranking Member Edward J. Markey (D-Mass.), introduced the Small Business RELIEF Act on September 11, 2025. The bill aims to exempt small businesses from global baseline and reciprocal tariffs imposed during the Trump administration and to provide refunds to small businesses that have already paid these tariffs.
This legislative move follows a decision by the U.S. Court of Appeals for the Federal Circuit on August 29, 2025, which ruled President Donald Trump’s “Liberation Day” tariffs illegal. Despite this ruling, the tariffs remain in effect as the Supreme Court has agreed to review their legality in November.
“While the courts continue to battle over the legality of Trump’s ‘liberation day’ tariffs, small businesses cannot wait and never should have been part of this terrible policy,” said Ranking Member Markey. “My Small Business RELIEF Act would not only exempt small businesses from the reckless, wide-sweeping reciprocal and global baseline tariffs, but importantly will also require the President to give refunds to small businesses who have paid these tariffs within 90 days of enactment. We must continue to show up for small businesses and ensure they are not left to bear the burden of these harmful tariffs. They need relief now.”
Senate Democratic Leader Chuck Schumer (D-N.Y.) voiced support for the legislation, stating: “Small businesses are feeling the brunt of the Trump administration’s economic carnage. Tariffs are raising costs, pushing away tourists, slowing down manufacturing, and forcing many businesses to close their doors altogether. Trump’s disastrous economic policy must be stopped, and Congress must pass the Small Business RELIEF Act to protect our economy and small businesses across the country.”
Other co-sponsors include Senators Richard Blumenthal (D-Conn.), Mazie Hirono (D-Hawaii), Angela Alsobrooks (D-Md.), Mark Warner (D-Va.), John Hickenlooper (D-Colo.), Mark Kelly (D-Ariz.), Kirsten Gillibrand (D-N.Y.), and Martin Heinrich (D-N.M.). These senators cited concerns about rising costs and challenges faced by small business owners as a result of tariff policies.
“Trump’s sweeping tariffs have done nothing but wreak havoc on businessowners and entrepreneurs, hiking costs and threatening the survival of many small businesses in Hawaii and throughout the country,” said Senator Hirono. “I am proud to support this legislation that would not only help to shield small businesses from these harmful tariffs, but also require the administration to rightfully compensate these businesses for any increased costs associated with them. Our small businesses are vital to the economy and they should not have to pay the price for Trump’s recklessness.”
"Small businesses are the backbone of Maryland – making up 99% of businesses and employing over 1 million people in our state,” said Senator Alsobrooks. “I will always fight for these businesses whether it’s working to lower costs, cutting taxes, or standing up against Trump’s devastating tariffs."
“Trump’s tariffs have hit small businesses particularly hard as they struggle to absorb the increased costs,” said Senator Warner. “The Small Business RELIEF Act will help make sure that Trump’s reckless taxes don’t cripple small businesses in Virginia and across the country.”
“Small businesses are the backbone of the American economy, but they are especially vulnerable to President Trump’s tariff policies that are suffocating our economy,” said Senator Gillibrand. “Millions of small businesses are already struggling to keep up with rising costs. That’s why I will keep fighting to push back against these reckless tariffs, so every small business has the resources and stability it needs to thrive.”
“Small business owners and workers should not have to bear the brunt of the Trump Administration’s misguided tariffs,” said Senator Blumenthal. This legislation protects hardworking entrepreneurs, mom and pop shops, and the small businesses that are the cornerstones of our communities from the devastating economic wound of the Trump tariffs. While President Trump and Republicans in Congress are handing out massive tax breaks to the wealthy, I will continue to fight for every-day Americans and provide relief for small businesses in Connecticut and across the country.”
“Small businesses shouldn’t be collateral damage in Trump’s reckless and illegal trade war,” said SenatorHickenlooper. “As a former small business owner who’s met with Colorado entrepreneurs, I know these senseless tariffs are crushing entrepreneurs and increasing prices across the board. Small businesses deserve the chance to weather this storm.”
“Arizona’s small businesses shouldn’t be collateral damage in Trump’s reckless trade policies. I’ve heard directly from business owners across the state who tell me these tariffs are driving up costs, squeezing already thin margins, and in some cases forcing them to shut their doors,” said Senator Kelly. “I’m working to make sure small businesses get the refunds they’re owed and aren’t left to shoulder the burden of policies that make it harder to compete and grow.”
Industry groups also voiced support for refunding import duties already paid by affected companies.
"Small businesses were the ones hit hardest by the Trump-era tariffs — paying higher prices on everything from raw materials to tools they need," said Richard Trent of Main Street Alliance. He added that refunding those payments "would put money back into local economies" after years under what he described as unfair trade policy.
Todd McCracken from National Small Business Association noted that more than 99 percent of all U.S companies qualify as small firms but often lack resources needed when sudden policy changes occur: "By exempting small firms from these duties and providing timely refunds," McCracken stated,"the Small Business RELIEF Act acknowledges both their unique vulnerability and their vital role in driving economic growth."
Additional endorsements came from leaders at Small Business for America’s Future; Small Business Majority; Women Impacting Public Policy; CAMEO Network; each highlighting how recent tariff increases resulted in higher operating expenses or threatened job creation at local levels.
Last month Ranking Member Markey sent a letter urging several federal agencies—including SBA Administrator Kelly Loeffler—to establish clear procedures for refunding impacted companies’ tariff payments. Earlier attempts by Markey this year aimed at passing similar exemption measures were blocked on Senate floor votes.
