Tariff Turmoil Fuels Surge in Small Business Anxiety

New Alignable Report Reveals Rising Worries About Declining Sales

BOSTON, MA, April 4, 2025 – As the trade policy roller coaster accelerates under the Trump administration, U.S. small business owners are growing increasingly anxious about their financial future.

According to a new report from Alignable, the largest small business networking platform in North America, 44% of SMB owners say they expect reduced sales due to tariffs—up 3 percentage points from March and 14 points from February. Of those, 13% anticipate significant revenue drops.

And the concern isn’t just forward-looking: more than 25% of small businesses report they’re already experiencing tariff-related declines in sales.

These findings come from Alignable’s April Tariff Report, based on 4,441 responses from randomly selected U.S. small business owners surveyed between March 22 and April 1, 2025. The study was carried out in collaboration with Harvard Business School researchers Zoe Cullen and Ebehi Iyoha, and Massachusetts Institute of Technology researcher David Atkin.

This survey was conducted just prior to President Trump’s “Liberation Day” tariff announcements. As such, these findings likely represent only the beginning of a growing trend, which is expected to accelerate as new trade measures take effect.

Additional insights from Alignable’s report show that only 18% of small businesses expect a revenue boost (down 1% from March), and just 5% believe that increase will be significant (over 25%).

Meanwhile, 38% of business owners believe tariffs will have no impact—a 12-point increase from last month, though still below the 40% mark in February’s report. 

While many respondents referenced the short-term pain caused by tariffs, some expressed hope for a longer-term revival of domestic industries, more resilient supply chains, and broader economic benefits for the middle class.

Other Report Highlights

• Over 50% say they can’t negotiate lower prices with suppliers to offset tariff costs.
• Domestic alternatives often cost 25% or more and take six months or longer to source.
• Nearly 20% report no viable domestic supplier options exist.
• 68% expect continued trade policy uncertainty through April. And 42% foresee ongoing uncertainty lasting through the end of 2025.
• 75% anticipate that average tariffs of 15% or more will remain in place for the foreseeable future.
• Over 50% were unaware of retaliatory tariffs from China and Canada.

“Tariffs are taking a serious toll on a growing number of small businesses, and the pressure is only mounting,” said Eric Groves, Alignable’s Co-Founder and CEO. “But there are clear, proactive steps owners can take—like strengthening domestic supplier networks, adjusting pricing strategies, and leveraging trusted relationships—to combat these challenges and build resilience. In times like these, collaboration and adaptability are essential. Small businesses that plan ahead and lean on their networks will be far better positioned to weather uncertainty and emerge stronger on the other side.”

Where Concern Is Growing Fastest

According to the April report, the states with the largest percentage of business owners worried about declining revenue include:

• New York – 55% (up from 45%)
• Pennsylvania – 52% (up from 41%)
• Florida – 48% (up from 38%)
• Massachusetts – 48% (up from 45%)
• New Jersey – 45% (up from 35%)
• Illinois – 40% (down from 47%)
• Michigan – 39% (up from 32%)
• Colorado – 39% (down from 48%)
• Texas – 39% (up from 37%)
• North Carolina – 39% (up from 38%)

Key Industry Shifts

As the percentage of owners expecting financial trouble from tariffs has climbed from 41% to 44% nationally, concerns have also intensified across several key industries:

• Retail – 57% (up from 54%)
• Restaurants – 54% (up from 45%)
• Travel/Lodging – 54% (up from 39%)
• Construction – 53% (up from 45%)
• Transportation – 53% (up from 47%)
• Marketing – 47% (up from 43%)
• Health/Wellness – 41% (up from 36%).

But a few sectors saw some stabilization:

• Manufacturing – 52% (down from 54%)
• Real Estate – 35% (down from 39%).

In Their Own Words

While data quantifies the pressure small business owners are under, their direct comments reveal the emotional toll and complex trade-offs they’re facing. 

Here are several quotes directly from those taking the survey, along with the sector they represent.

• “My nonprofit clients are struggling financially due to increased prices—and funding is down.” (Nonprofit)
• “Tariffs will create hardship in the interim. But in the long term, they could help bring jobs back.” (Construction)
• “My business is too small and low-margin to survive increased costs of goods and services, while my customers are losing jobs.” (Retail)
• “Tariffs when used broadly are a way to tax Americans while pretending to punish others.” (Wholesale)
• “Uncertainty is forcing us to only produce what we know will sell—we’re avoiding long-term investments.” (Professional Services)
• “20–25% of my income comes from medical tourists. Tariffs and travel restrictions are killing that market.” (Healthcare)
• “We’ve seen a surge in auto repair businesses—tariffs are indirectly fueling some local growth.” (Software)

For more quotes or detailed data by state or industry, contact chuck@alignable.com. To review prior surveys, visit the Alignable Research Center, which chronicles small business sentiment and trends across North America.

About Alignable

Alignable is the largest small business networking platform in North America, connecting more than 9 million business owners across 35,000+ communities. Built to help entrepreneurs network smarter, Alignable makes it easy to build trusted relationships, grow through referrals, and share insights with peers. Powered by Alignable 360, an intelligent relationship engine, the platform enhances business visibility, surfaces high-value connections, and fosters lasting growth. Learn more at www.alignable.com.