Economic & Trade Policy
What is the Presidential Action?
President Donald Trump has proclaimed May 4 through May 10, 2025, as National Small Business Week, recognizing the indispensable role of 33 million small businesses in the American economy. This proclamation supports small businesses through targeted tariffs, reduction of regulatory burdens, and initiatives like the Made in America Manufacturing Initiative aimed at fostering a conducive environment for small enterprises.
Background or Context with Statistics and Source References
Small businesses constitute nearly half of the U.S. private-sector workforce, employing 61.7 million Americans and creating two-thirds of new jobs. Historically, these businesses have navigated challenges such as high inflation and stringent regulations. The global trade system, established post-World War II, has often been manipulated by foreign markets to the detriment of U.S. businesses. The current administration’s policies aim to rectify these long-standing issues and bolster domestic businesses.
Why This Action Was Taken
The proclamation comes as a strategic move to empower small businesses that have suffered under unfair global trade practices and domestic economic policies. By implementing targeted tariffs and cutting down on $100 billion in regulations, the administration aims to protect these businesses and ensure they thrive. This action reflects a commitment to putting American workers and entrepreneurs at the forefront of economic policy.
Short and Long-Term Impact on People
In the short term, small businesses will experience relief from international competition and reduced regulatory costs, potentially leading to lower prices and increased competitiveness. Over the next year and beyond, these changes are expected to result in higher employment rates, increased wages, and stronger local economies. Long-term, the initiative aims to secure a sustainable and prosperous future for small businesses, thereby strengthening American families and the overall economy.
Performance/Impact Parameters to Measure Success
Success will be measured by an increase in job creation rates, higher business survival rates, and positive feedback from small business owners. Economic indicators such as GDP growth, employment rates, and manufacturing output will also be critical. Additionally, the balance of trade figures will help assess the effectiveness of the new tariffs and trade policies.
Constitutional Validity and Legal Precedents
The President’s proclamation under the authority vested by the U.S. Constitution and national laws stands on firm legal ground. Similar actions have been upheld in the past, where executive orders supported economic and trade policies to bolster national interests. Judicial precedents have generally supported the executive’s role in regulating commerce and managing international trade, aligning with the actions taken in this proclamation.
