U.S. Rep. Christopher Pappas is sponsoring new legislation that seeks to exempt small businesses from tariffs and reimburse them for the trade war duties that the 1st District congressman described as “unnecessary and harmful.”
“As I and small business owners across New Hampshire have been saying for months, we are experiencing an entirely predictable outcome of President Trump’s reckless and sweeping tariffs — higher costs, tighter budgets and smaller bottom lines,” Pappas, a Democrat, said in a statement to NHBR.
Ahead of Small Business Saturday (always the Saturday after the traditional Black Friday shopping rush), Pappas and U.S. Rep. Kelly Morrison, Democrat from Minnesota, announced their intent to file the exemption and reimbursement legislation. Companion legislation in the U.S. Senate is being filed by Edward Markey, D-Mass.
U.S. Rep. Chris Pappas, D-1st Dist.
The legislation is entitled the “Small Business RELIEF Act” with RELIEF serving as an acronym for “Restoring Equity for Local Importers through Economic Fairness.”
“President Trump’s tariffs have forced American small businesses to freeze hiring, hit pause on plans to expand, and cut their already tight budgets to keep their doors open,” Pappas said.
Congresswoman Morrison added: “President Trump’s tariffs have placed enormous financial strain and stress on so many hard-working small business owners, and it’s long overdue for Congress to act.”
Their legislation states that tariffs “shall not apply with respect to goods imported by or for the use of a small business concern.” A small business, as defined by law, has a variety of classifications but typically are manufacturers of fewer than 500 people and non-manufacturing businesses being an average annual revenue of less than $7.5 million.
Their legislation further requires that the president “refund the amount of any duties paid” within 90 days of enactment.
Legislation forcing the administration’s hand on tariffs has so far gone nowhere in the Republican-controlled Congress.
Morrison and Pappas, along with Markey in the Senate, tried similar legislation earlier this year requiring exemption of small businesses from the tariffs. That legislation did not contain the reimbursement element. The Senate bill was co-sponsored by U.S. Sen. Jeanne Shaheen, D-NH.
The House version was referred to its Ways and Means Committee but no hearing was held and there’s been no action since. In the Senate, it was heard in committee in May but nothing has come of it since.
Tariffs and their effect on businesses, large and small, as well as on consumers, have been top of mind among the state’s congressional delegation, all Democrats.
Pappas, U.S. Rep. Goodlander of the 2nd District, and U.S. Sens. Shaheen and Maggie Hassan in October joined a friend of the court brief that challenges President Donald Trump’s authority to unilaterally impose tariffs. That challenge was heard by the U.S. Supreme Court in arguments earlier this month. A decision is expected soon. (See a previous NHBR story here.)
Pappas said consumers “can’t wait for a Supreme Court ruling or the end of this administration to get back on track. They need us to act now.”
Each member of the delegation has toured the state, meeting with constituents directly affected by the tariffs.
“I continue to hear from small businesses that the president’s policies are making it harder instead of easier to make ends meet,” said U.S. Sen. Jeanne Shaheen on Tuesday after a walking tour of downtown businesses in Contoocook with former Gov. John Lynch and U.S. Small Business Administration New Hampshire District Director Amy Bassett.
Shaheen, who is leaving the Senate once her term expires at the end of 2026 added, “I’m going to keep pushing back in Washington — whether it’s by advocating for an extension of the Affordable Care Act enhanced premium tax credits that disproportionately benefit small businesses and their employees or by calling out the harms of the administration’s tariffs taxes that make basic necessities more expensive for business owners and everyday customers alike.”
Pappas is campaigning to succeed Shaheen.
Tariffs and their effect on the overall economy is also top of mind among New Hampshire voters. That’s based on a new NH Business and Industry Association (BIA) Report on Consumer Confidence, conducted by the University of New Hampshire Survey Center.
The survey says 77% of New Hampshire residents say the prices of the goods they purchase on a regular basis have risen significantly (47%) or slightly (29%) in the past 12 months. And a healthy majority (63%) believe that prices will continue to rise in the months ahead.
According to the survey, among those who expect prices to continue to rise 40% says it’s because of tariffs while 24% say it’s because of poor economic stewardship.
Trump levied tariffs on just about all consumer goods not made in the United States, affecting duties on products worldwide.
Facing growing concerns about price hikes, Trump announced a rollback of the tariffs on certain foodstuffs (coffee, bananas, beef and spices). He said it was because of progress in reciprocal trade deals, while others see it as an acknowledgement that his tariffs are having the opposite effect of driving prices down.
“While he has rolled back some tariffs after pleas for relief from businesses and families facing skyrocketing costs, the damage has already been done and continues to worsen every day,” Pappas told NHBR. “The fact is, President Trump has not done nearly enough to correct the self-inflicted wounds he has caused our economy, and that is why I will continue to fight to protect Granite Staters from this unnecessary and harmful trade war.”
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