One year ago this week, the administration announced sweeping tariffs under the International Emergency Economic Powers Act, a move quickly dubbed "Liberation Day" by its proponents. For small businesses that import goods, the past 12 months have been a financial stress test.
Here's a factual account of what happened, what it cost, and where the policy stands today.
The Numbers
The average small-business importer paid approximately $306,000 more in tariffs over the past year than they did the year before, according to analysis published by Nav.com and cited by American Progress.
At the consumer level, analysts at American Progress estimated the tariffs added roughly $1,500 per U.S. household in additional costs — through higher prices on imported goods, inputs, and domestically produced goods that compete with imports.
Approximately 80% of companies surveyed across sectors reported supply chain disruptions over the period, according to data cited by Marketplace.org. Those disruptions ranged from delayed shipments and inventory gaps to the need to find entirely new suppliers.
These are the numbers. The policy debate around them belongs elsewhere.
What Happened Legally
In February 2026, the Supreme Court ruled that the administration's use of IEEPA as the legal basis for broad tariffs exceeded executive authority. The ruling struck down that mechanism.
The administration moved quickly. Within weeks, a new tariff structure was announced under Section 122 of the Trade Act of 1974 — a different legal authority that permits the president to impose tariffs of up to 15% for a period of 150 days when a balance-of-payments emergency is declared.
The 15% tariff took effect shortly after the ruling, covering a broad range of imports. The 150-day clock is running.
On the legislative front, Democrats introduced the "Small Business Liberation 2.0 Act" in March 2026, which would provide relief mechanisms for small importers. As of this writing, the bill's prospects in a divided Congress are uncertain.
What 150 Days Means
The Section 122 window expires in mid-summer 2026. What happens at that point is genuinely unclear.
Options include: the tariff lapses and is not renewed, the administration finds another legal mechanism to continue it, Congress passes legislation codifying some form of tariff structure, or a negotiated trade agreement reduces rates with specific countries.
Small businesses planning purchasing and inventory decisions over the next six months are essentially operating with a structural unknown baked into their costs.
What Small Businesses Have Been Doing
The disruption has pushed businesses into several practical responses, documented in case studies from Nav.com and trade publications.
Supplier diversification. Many importers have reduced reliance on single-country sourcing, shifting some volume to Vietnam, Mexico, India, and domestic manufacturers. This takes time and money to set up but reduces exposure.
Price adjustments. Most businesses that import goods have passed at least some tariff cost to customers. Some have absorbed part of the increase to stay competitive. Both choices carry trade-offs.
Inventory strategy changes. Businesses that could afford to have been front-loading inventory before tariff deadlines. Others have moved to smaller, more frequent orders to reduce the capital tied up in goods that might be affected by policy changes.
Product mix shifts. Some businesses have quietly eliminated lower-margin imported products and doubled down on items with better margins or domestic sourcing.
Where Things Stand Now
The 15% tariff under Section 122 is in effect. The legal challenge to that mechanism has not yet reached the courts.
The "Small Business Liberation 2.0 Act" would create a rebate mechanism for qualifying small importers, but it has not passed.
Practical advice from import attorneys and trade advisors right now: don't assume the 150-day window results in the tariff disappearing. Build contingency plans for two scenarios — tariff continues at 15%, and tariff structure changes again.
Document everything. Tariff engineering — the practice of reclassifying goods under different Harmonized Tariff Schedule codes that may carry lower rates — is a legitimate and legal strategy worth reviewing with a trade attorney if you haven't already.
The past year changed the cost structure of importing for small businesses in ways that won't fully reverse regardless of what happens this summer. Adjusting to that reality, rather than waiting for it to go away, is the more durable position.