Small Business Owners in NYC Express Economic Concerns

News Summary

A recent survey highlights declining economic optimism among small business owners in New York City. Only 30% rate the economy positively, down from 39%. Concerns over a potential recession, inflation, and tariff impacts are rising, with 70% fearing an economic downturn. Disapproval of President Trump’s job performance among small business owners has also increased to 51%. As trade policy uncertainties loom, many small businesses are expressing anxiety about their financial futures and operational repercussions.

New York City – Economic optimism among small business owners is waning, according to a recent quarterly survey, raising concerns over the potential for a slowdown in economic growth as fears of a recession increase amid ongoing tariff uncertainties. The CNBC|SurveyMonkey Small Business Survey indicates that only 30% of small business owners now rate the economy as excellent or good, a notable decline from 39% in the previous quarter. This significant drop in confidence suggests mounting trepidation within the small business sector.

Currently, 70% of small business owners believe that the nation is gravitating towards a recession, with nearly unanimous agreement among Democrat respondents and 47% of Republican respondents sharing this viewpoint. The survey, which was conducted from April 21-25, 2025, among 2,257 small business owners, reflects a broader sentiment of discontent regarding economic conditions and governmental performance.

In addition to declining optimism, 51% of respondents express disapproval of the job performance of President Donald Trump, showing an increase from 39% at the end of his previous presidential term. Notably, small business confidence is now at its lowest level during Trump’s presidency, except for the most challenging periods during the Covid crisis.

The survey reveals that small business owners are increasingly anxious about the implications of potential trade policy changes. Major corporations, including well-known brands like Pandora and Mattel, have raised alarms regarding the impact of proposed tariffs on consumers, forecasting significant price increases as a result of these changes. The survey also shows that 51% of small businesses expect such trade policy changes to adversely affect their operations within the next year, while 66% have already been or expect to be affected by tariffs.

For many small business owners, inflation and consumer demand represent primary risks, with 24% citing inflation and 18% highlighting consumer demand as key concerns. The risk from tariffs has notably increased, now identified by 17% of respondents, up from 10% in the previous quarter’s survey. Economic pressure seems prevalent, as 60% of small business owners report feeling stressed about their business finances and 63% about their personal financial situations.

The U.S. Chamber of Commerce has reported an uptick in requests from small businesses for information and financial relief relating to potential tariffs. The organization has advocated for the Trump administration to lift tariffs imposed on all small business importers to mitigate what they describe as “irreparable harm” that could stem from ongoing trade tensions. Small businesses that depend heavily on manufacturing in China are particularly vulnerable, facing exorbitant tariffs that have resulted in canceled orders from supply partners.

In a recent social media post, President Trump suggested a potential reduction of tariffs on China to 80% and mentioned forthcoming trade deals. However, small business owners remain cautious as uncertainty clouding trade relations persists. Additionally, Federal Reserve Chair Jerome Powell has commented that sustained increases in tariffs could trigger a slowdown in economic growth and long-term inflationary pressures, emphasizing that the inflationary impacts of tariffs might either be transient or lead to prolonged economic challenges.

As the economy remains on shaky ground, the sentiment shared by small business owners underscores the precarious nature of economic recovery, compounded by tariff uncertainties and regulatory challenges. The results of this survey serve as a barometer for the economic health and attitudes of small businesses, which play a vital role in the United States’ economic landscape.

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Additional Resources

• Wall Street Journal: Small Business Tariffs
• CNBC: Small Businesses Expect Recession with Trump Tariffs
• New York Times: Tariffs and Small Business
• Al Jazeera: US Small Biz Suffers from Tariffs
• Google Search: Small Business Tariffs