Trade Profile of Small Businesses and Potential Impact from Trump new tariffs
Small Businesses Trade Profile as of 2021
2021 data more recent available
- Small Businesses while a smaller portion of total trade value, they are the majority of firms importing or exporting in the economy → the most affected by tariffs will be small businesses
- However, only a very small portion of small businesses import or export (~250,000, ~4.2% employer businesses). According to the SBA, as of 2024, there are 34.8 million small businesses in the United States, but only about 6.6 million small businesses have paid employees. In line with 2022 census, reporting 6.2 employers (more than 99% businesses expected to be small businesses by SBA).
- Since SMEs operate with very low margins, and a significant part with no profits at all, for the ones that are affected by new tariffs will be a significant hit to their profitability.
Imports Profile
- SMEs accounted for approximately $839 billion or about 34.4% of the total identified import value ($2,440 billion) in 2021 → ~4T imports in 2024, meaning ~1.4T for small businesses
- Of 226,662 identified importers, the majority were SMEs (220,980), reflecting their significant presence across industries, particularly in Wholesalers.
- Total imports from China, Mexico and Canada are 40% of total
- SME importers accounted for 41.2 percent of the imports from China, more than 12 percentage points higher than either Mexico (23.6 percent) or Canada (29.8 percent).
- SME importers were predominant in Wholesale trade (goods), responsible for $470 billion of imports, followed by Other sectors ($216 billion).
Exports Profile
- SMEs accounted for $542 billion, representing approximately 34.9% of the total identified export value ($1,554 billion) in 2021. → 2024 exports $3.2T
- SMEs significantly contributed to export activities in Wholesalers, with about $248 billion, and Manufacturers, with $154 billion.
- Out of 278,362 identified exporters, SMEs made up a substantial majority, especially among Wholesalers and Other companies. Only a small fraction were large exporters.
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