Small business owners from Georgia to Florida are feeling the financial pressure of rising tariffs and climbing fuel prices — and even some officials within the Trump administration are acknowledging the strain.
At an automation facility in Forsyth County, Georgia, Small Business Administration Administrator Kelly Loeffler touted hiring gains tied to the “One Big Beautiful Bill” Act.
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Still, she admitted the economy faces real “headwinds” that are slowing progress, while expressing confidence that the policies will eventually deliver “positive results.”
Tariffs taking toll
That optimism, however, collides with the daily realities facing small business owners on the ground.
Georgia business owner Travis Reid described the direct impact on his operation.
“When I directly import some of our goods from China, India, there’s been a tax that’s increased, which is averaging probably around 20%, as high as, you know, last year, it was as high as 50% on some goods,” Reid told reporters.
For small firms already operating on thin margins, a 20% average tax increase on imported goods isn’t an abstraction — it’s the difference between profit and loss.
Fuel prices add to squeeze
The pain doesn’t stop at the port.
According to AAA, the national gas average has climbed above $4 per gallon — roughly $1 higher than a year ago.
That spike ripples through transportation and supply-chain costs, ultimately landing on small business balance sheets.
For businesses that depend on delivery, logistics or any form of goods movement, higher fuel costs compound the tariff burden — driving up the total cost of doing business before a single product reaches a customer.
Mixed signals
Florida’s labor market is adding another layer of uncertainty to the regional economic picture.
The Florida Department of Commerce reports the state’s unemployment rate ticked up to 4.5% in January — pushing Florida above the national average for the first time in years.
U.S. Sen. Rick Scott called the report “concerning,” urging swift action to ensure Florida remains “the best place in the country to live, work, and raise a family.”
Not everyone is sounding the alarm just yet.
Florida State University business analyst Wayne Hochwarter urged caution in interpreting the data.
“What we’re seeing now is just a blip,” Hochwarter said, noting the figures are from January and don’t capture the effects of later travel disruptions or the war in Iran.
That lag in data is itself part of the problem. By the time state and federal policymakers respond to economic signals, the conditions on the ground may have already shifted.
What’s at stake
The broader picture emerging from these regional snapshots is one of uneven pressure on small businesses — pressure that experts warn could accelerate without targeted relief.
Small firms carry thin margins and limited cash reserves, meaning sudden cost increases can quickly force difficult choices: layoffs, price hikes or, in some cases, closure.
When businesses pass higher input and transportation costs on to consumers, the result is added inflationary pressure — a dynamic already playing out at the pump and on store shelves.
State budget debates complicate the response further. Delayed economic data makes it harder for local officials to craft well-timed, targeted policy interventions, leaving many small employers to navigate the turbulence largely on their own.
Policy conversations are beginning to take shape around several key questions: whether tariffs should be recalibrated to shield small importers, what short-term relief measures — such as tax credits, grants, or fuel support — could provide meaningful help to Main Street, and how state budgets should adapt to slowdowns in tourism and construction.
For now, small business owners aren’t waiting on Washington for answers. They’re recalculating costs, renegotiating supplier contracts and trying to stay afloat in an economic environment that shows little sign of stabilizing soon.
Bottom line
Main Street is already paying the price of trade and geopolitical choices. Without targeted relief, smarter tariff calibration, or budget measures to support local employers, small businesses risk fewer hires, higher prices for consumers, and weaker regional economies.
Our conversation
Hochwarter joins me on this week’s episode of Politics & Power to discuss:
- Whether tariffs should be adjusted to shield small importers
- What short‑term relief (tax credits, grants, fuel support) would help Main Street
- How state budgets should adapt to tourism and construction slowdowns
Watch live at 10:30 a.m. Tuesday on News4JAX+ or catch our encore presentations at 7 p.m. or 9 p.m. Tuesday on News4JAX+.
You can also catch up any time on demand on News4JAX+, News4JAX.com or our YouTube channel.