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U.S. Small Business Confidence Hits Lowest Level Since 2022 Despite Tariff Truce

April saw the NFIB Optimism Index fall for a fourth consecutive month, as record-high tariff revenues and policy uncertainty weigh on investment and hiring plans.

An independent barber waits for customers on his van in a local street in New York, U.S., December 25, 2023. REUTERS/Eduardo Munoz/File photo
Image
Hezzi Ramim works in his A to Z Toys store earlier this month in Miami Beach, Florida. Ramim, who opened the store 39 years ago, said he would have to raise prices on almost all the toys in his store because of the Trump administration's tariffs on countries he imports toys from. (JOE RAEDLE/GETTY IMAGES)
Data: NFIB; Chart: Axios Visuals

Overview

  • The NFIB Small Business Optimism Index dropped to 95.8 in April, marking its lowest point since mid-2022 and the fourth consecutive monthly decline.
  • A temporary U.S.-China tariff reduction agreement was reached, but its 90-day scope offers limited relief for small businesses burdened by high costs and supply chain risks.
  • Capital expenditure plans fell to 18%, the lowest since April 2020, reflecting heightened caution among small firms about future economic conditions.
  • The share of small businesses reporting unfilled job openings dropped to 34%, the lowest level since January 2021, signaling a potential labor market slowdown.
  • The U.S. Treasury collected a record $16 billion in tariff revenue in April, underscoring the financial strain of trade policies on businesses reliant on imports.