Illegal Tariffs Cost Small Businesses $200 Billion Last Year
LOS ANGELES, CA — Yesterday, February 20, 2026, U.S. Representative Laura Friedman (CA-30) announced that she is helping lead new federal legislation that would guarantee automatic refunds to small businesses that were impacted by the Trump Administration’s tariffs, which were just ruled illegal by the Supreme Court earlier this morning.
“The Supreme Court finally ruled what we all knew to be true: these tariff taxes are illegal. Over the past year, President Trump has cost families $1,200 and forced small businesses to pay roughly $200 billion in tariffs – now it’s time for the President to pay them back,” said Congresswoman Laura Friedman (CA-30). “That’s why I’m proud to help lead the RELIEF Act, which will make sure that America’s small businesses are paid back every single cent that was taken from them by Trump’s illegal tariffs.”
The U.S. Chamber of Commerce estimated that Trump’s tariff policies cost America’s small businesses about $200 billion this past year. The Restoring Economic Lifelines for Independent Enterprises and Family Businesses (RELIEF) Act would provide these businesses with immediate relief. The legislation was introduced by Representatives Steven Horsford (NV-04) and Janelle Bynum (OR-05), and Representative Friedman is an original cosponsor.
The RELIEF Act would:
- Apply to all tariffs collected since January 1, 2025
- Set a strict timeline for refunds of 90 days after enactment
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Cut red tape around the application process for small and independent businesses
Rep. Friedman has long fought against the Trump Administration’s reckless tariff policy. She stood shoulder to shoulder with parents and school administrators to rally against tariff-driven price hikes on the first day of classes for schools across Los Angeles. She also toured the Port of Los Angeles to see first-hand how tariffs impacted one of America’s busiest ports and the local economies and jobs that depend on regular trade.