Tariff Whiplash Hits Black-Owned Businesses Hard

Uncertain trade policy and dismantling of equity programs create challenges for Black entrepreneurs.

Mar. 13, 2026 at 10:35pm

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A new report from the Joint Center for Political and Economic Studies has identified signs of a 'Black recession,' marked by record Black unemployment, business contraction, and the cumulative impact of policy choices that have targeted the predictability, programs, and protections that Black economic participation depends on. The latest example is the President's decision to impose new tariffs just hours after the Supreme Court ruled the previous tariff policy unconstitutional, injecting further uncertainty into markets and making it increasingly difficult for Black-owned small businesses to plan, survive, and grow.

Why it matters

Small businesses are the country's leading private sector employer, and when they contract, entire communities feel the impact. Black-owned small businesses face a compounding burden from the broad economic headwinds created by tariff uncertainty and the targeted dismantling of the equity programs and administrative structures this administration has moved to eliminate.

The details

The data shows Black unemployment reached its highest level in four years in 2025, while tariffs have driven up both input costs for businesses and retail prices for household staples. Small businesses with fewer than 20 employees, the size category that includes most Black-owned firms, have shed 62,000 jobs since January 2025. The Center on Budget and Policy Priorities has stated that 'the standard of living for Black households and small businesses faltered in 2025 due to a variety of targeted policies from the Trump Administration, including tariffs.'

  • In 2025, the Joint Center for Political and Economic Studies released a report warning of signs of a 'Black recession.'
  • On February 20, 2026, the Supreme Court ruled the President's tariff policy unconstitutional.
  • Hours after the Supreme Court ruling, the President announced he would impose different tariffs to offset those struck down.

The players

Joint Center for Political and Economic Studies

A research organization that focuses on issues affecting the Black community.

Raphael Bostic

The president of the Atlanta Federal Reserve, who has been candid in describing the impact of tariff uncertainty on businesses.

Center on Budget and Policy Priorities

A non-profit research organization that has analyzed the impact of targeted policies, including tariffs, on Black households and small businesses.

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What’s next

Congress can reassert its constitutional authority over trade policy, and the administration can acknowledge the costs of the uncertainty it is generating and prioritize relief for small businesses harmed by the tariffs.

The takeaway

This case highlights the disproportionate impact of tariff uncertainty and the dismantling of equity programs on Black-owned small businesses, underscoring the need for policymakers to provide stability and support for these critical community anchors.