Fed Finds Tariffs Hurt Small Business Costs

The Federal Reserve released its 2025 Small Business Credit Survey on Tuesday, saying rising import tariffs and inflation were the top challenges for U.S. small firms last year. More than 40% cited tariff-related costs; 76% passed some costs to customers, 60% absorbed expenses, and firms rarely reshored inputs. The Fed also found nearly half of small firms use AI—mainly for writing and marketing—with 15% planning adoption and little job displacement.