Newly released survey data shows that small businesses are less optimistic about the economy amid market turmoil and ongoing uncertainty because of quickly evolving tariff policy.
The National Federation of Independent Businesses released its survey of small business owners this week, which found that NFIB’s small business optimism index declined by 1.6 points in April to 95.8, “the second consecutive month below the 51-year average of 98.”
President Donald Trump unveiled his tariff policies earlier this year which set off a market downturn. Trump then paused most of his tariffs to negotiate individual trade deals with other nations, countries that Trump says have ripped off the U.S. for years by tariffing American products.
Trump has promised a revival in domestic manufacturing as the reward for the pain of tariffs, and significant investment has already been announced by some companies. However, the payoff from those investments will take years while the pain from tariffs is immediate.
Those conditions have created uncertainty for small businesses.
“Uncertainty continues to be a major impediment for small business owners in operating their business in April, affecting everything from hiring plans to investment decisions,” said NFIB Chief Economist Bill Dunkelberg. “While owners are still trying to fill a high number of current job openings, their outlook on business conditions is less supportive of future business investments.”
