The new survey data show that tariff policies that evolve and unpredictable by President Donald Trump are causing small businesses to be less optimistic about the economy. The National Federation of Independent Companies (NFIB) recently launched its April survey of more than 1,000 owners of small businesses in the United States. The report found that commercial optimism decreased by 1.6 points to 95.8, marking “the second consecutive month” the metric fell “below the average of 51 years of 98”.
The NFIB index components are reaching the levels not seen from the COVID-19 pandemic. Work openings seasonally fell below 34 percent (lower since January 2021). Meanwhile, only 18 percent of the companies said they were planning capital disbursements in the next six months, the first decrease since September 2024 and the lowest since April 2020. The number of owners of small businesses that await an increase in the volume of real sales fell into four points, which makes it “the fourth consecutive month the real sales expectations decreased after increasing the recession levels after recess The elections “.
Only 15 percent of the owners expect better commercial conditions, a decrease of six points since March and the lowest since October 2024.
“Uncertainty remains a great impediment to small businesses in the operation of their businesses in April, affecting everything from the hiring of plans to investment decisions,” Bill Dunkelberg, chief economist of NFIB, said The central square. “While owners are still trying to fill a lot of current work openings, their perspective of commercial conditions is less support for future commercial investments.”
From the day of the inauguration, the Trump administration has announced new or reviewed tariff policies more than 50 times, according to a account by The Washington Post. More than a dozen executive orders related to the rate have been issued, average approximately one per week. It is a lot for anyone who stays up to date, much less the owners of small businesses who have the task of executing daily commercial operations.
Although few small companies export their goods and services, many depend on imported goods as supplies, according to the NFIB survey. The unpredictable turns instigated by Trump’s commercial war are “the prices (costs) suddenly and dramatically that change, and relative prices drive all decisions. Uncertainty remains high and, therefore, caution, spending, hiring and investing decisions.”
Trump believes that the highest prices in imported goods will boost a greater investment in US businesses, even if they exceed 1,500 economists plead defer. Meanwhile, small US businesses are strugglingAnd it is possible that he cannot maintain a competitive advantage while he expects supply chains and the market to stabilize.