BOSTON—Small to medium businesses are increasingly feeling the impact of tariffs, with 44% reporting a slump in business in June, according to a new report from Alignable, a small business network.
While about one-quarter of SMB owners saw tariff-related revenue drops in April (25%) and May (26%), that jumped by 18 percentage points in June. Among the industries most affected were the wholesale trade (72%), retail (57%) and manufacturing (56%). A majority of leaders in these and other sectors expect conditions to worsen in the months ahead.
Additionally, 49% of all SMB owners foresee continued declines if tariffs remain in place. The average reported decline was 13%, although 20% of businesses saw losses of 25% or higher. Among home furnishings companies, 72% of those polled said they’ve already seen decreasing sales from tariffs and 67% see additional declines if the trade situation doesn’t improve.
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“Using the threat of tariffs as a short-term negotiation ploy is triggering real, long-term damage across our economy,” said Eric Groves, CEO and co-founder of Alignable. “It’s not just a few industries and importers. The uncertainty is cascading through supply chains, cutting into margins and stifling confidence. Small business owners are caught in the crossfire.”
The Alignable poll of 4,028 small business owners, conducted June 14 to 25 in collaboration with two Harvard business school researchers and an MIT economist, also found one-in-five respondents fear their business won’t make it to 2026 if the tariff strategy continues.
“Using tariffs as a negotiating tactic may seem aggressive,” said Groves, “but the collateral damage is real. Small businesses are the backbone of the U.S. economy. Undermining their confidence and stability for short-term leverage is a dangerous bet.”
