U.S. small businesses are increasingly anxious about the state of the economy, with over 60% expressing pessimism, according to a recent survey released on Friday. The poll, conducted by CNBC, highlights growing concerns among entrepreneurs about tariffs, trade policies, and the potential for an impending recession.
Approximately 66% of small business owners reported that tariffs have already impacted them or they expect to be affected in the near future. More than half—51%—anticipate that changes in trade policy will negatively influence their businesses over the next 12 months.
As the new U.S. administration takes office, initial economic optimism has waned. Uncertainty surrounding tariff impacts and recession risks has dampened confidence among small businesses. Only 30% of respondents rated the current state of the economy as excellent or good, while a significant 70% described it as fair or poor. Moreover, 70% believe the country is heading towards a recession.
The survey also reveals that trade policy uncertainty is placing additional financial strain on small business owners, both professionally and personally. Over 60% admitted to feeling very or somewhat stressed about their business’s financial situation and their own personal finances.
Inflation and fluctuating consumer demand remain the top risks cited by small business owners. These factors are compounding fears about the future, prompting many entrepreneurs to brace for challenging times ahead.
