PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Kerrigan in the Washington Times: The Pain of Tariffs is Real and Growing for Small Businesses

By at 14 August, 2019, 9:30 pm

In an August 14 Washington Times Op-ed, SBE Council president and CEO Karen Kerrigan reviews the role that America’s small businesses play in trade, especially with China.  In addition, she highlights the effects of the trade war with China across industries, and how this is specifically hurting small businesses:

“More than 75 percent of American firms doing business with China have less than 20 employees, while those with less than 50 employees make up 86.7 percent. Since 2001, U.S. exports toChina have grown by 600 percent. Imports grew by nearly 400 percent. The dramatic growth in trade with China — and the jobs and economic growth directly tied to trade — are now at risk. Small businesses are hurt in many ways, including the opportunity to grow their firms.

“In testimony submitted to the U.S. Trade Representative’s office, I detail why the United States needs to adopt more effective alternatives to the use of tariffs. The new round of tariffs will cost an average of $200 per household, nearly doubling the cost from the first round of tariffs. Of course, fixing key trade issues with China — especially those related to intellectual property theft and market access — is critical, but inflicting pain and damage on our own economy and its small businesses through tariffs is shortsighted and will not work.

“Policies must continue to foster growth and an environment where entrepreneurs take risks. A go-to strategy of tariffs undermines risk-taking activity, especially for entrepreneurs who see opportunity in global markets. This pursuit takes a tremendous amount of time, resources and capital. The continual threat of tariffs, along with those currently imposed, serve as a huge risk to global market expansion.”

Read the full Op-ed here.

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