US Senator Jeanne Shaheen, D-NH, is advancing legislation that will help small businesses protect the fluctuating costs of certain goods, such as fuel. (Photo courtesy)
If the price of supply and demand is not unsafe, the ongoing, out-of-date fees threatened by President Donald Trump have added an additional level of anxiety for small businesses regarding the cost of goods such as fuel.
“For small businesses, uncertainty is one of the most difficult things to deal with, and Trump’s proposed tariffs in Canada and Mexico would make the close limits for these businesses to act under even stronger , “said US Senator Jeanne Shaheen, D-Nh.
To help relieve some of that anxiety, the old US senator from the granite state proposes what is called the act of flourishing small business. It would create a program that helps small businesses block the cost of goods, such as fuel, in order to protect themselves from the next unstable price of energy and other expenses.
“The act of small business aid flourishes is designed to help small businesses protect volatile cost changes so they can continue to grow and continue to provide good salary work in our communities,” said Shaheen.
According to the Senator, its bipartisan legislation directs the small business administration (SBA) to create a pilot program that allows small businesses to protect their cost exposure from gasoline, lumber and other goods at prices that can fluctuate, in dependence of supply and demand. Its co-sponsor is American Senator Bill Cassidy, R-Louisiana.
The program will first begin to close the costs for gasoline, diesel and up to three extra goods, with particular attention given to standard services such as natural gas or electricity.
Extra goods and services whose costs can be blocked can be added to the program after surveys and reactions from small businesses to assess which products would be most useful for them. The SBA would be directed to reach small businesses to ensure that they are aware of the program and can benefit from it.
Market traders and financial businesses would be excluded from the program to ensure that it focuses on small businesses and is not a tool for speculators, according to Shaheen.
Large businesses already protect themselves from inflation by closing costs through protective transactions, Shaheen said, adding that the act of moving small businesses gives small businesses the opportunity to enter the same means to protect against price instability.
Here is an example of how the program would work, as offered by the Shaheen office:
- Business A buys an option for $ 0.05 to pay no more than $ 3.50 for Gallon gasoline for 1000 gallons six months from now, closing to their gas cost with no more than $ 3,550 (3.50 $/Gallon X 1,000 Gallons, plus $ 0.05 $ Option cost for gallon).
- If the gas goes up to $ 5 per gallon, the business will still pay $ 5,000 ($ 5.00/Gallon X 1,000 Gallons) at the fuel station.
- However, because business one closed at a maximum price of $ 3.50 per gallon from their protection through the program, the business would receive a $ 1,500 ($ 1.50 1,000) payment, leaving the net cost of business A to $ 3,550 for which they planned. Business would still benefit if gas prices would fall by paying less at the pump.
Trump’s White House has aimed at three places with tariffs – China, Mexico and Canada – apparently to pressure them to address their roles in illegal immigration and/or Fentanil’s flow in this country.
Calling illegal immigration and fentanil an “extraordinary threat”, a Fact Sheet supplied by the White House says Trump is implementing an additional 25% fee for imports from Canada and Mexico and an additional 10% fee for imports from China. Canada energy sources will have a lower 10%tariff.
Critics of the action say that these tariffs will only serve to raise prices paid by consumers and businesses because the cost of these tariffs is not absorbed but passed.
“Tariffs are a powerful, proven source of lever to protect the national interest. President Trump is using the means in question and is taking crucial actions that puts the security of Americans and our national security, ”she says.
Mexican President Claudia Sheinbaum responded to the threat of tariffs by agreeing to immediately send 10,000 soldiers to its country’s border to prevent Fentanil’s trafficking and other drugs.
Canadian Prime Minister Justin Trudeau said his country would spend $ 1.3 billion on a plan to strengthen his border with young helicopters, technology and staff, as well as additional resources to stop Fentanil’s flow.
With those actions, Trump has been delayed for one month any fees imposition on Mexico and Canada.
China’s fees came into force 4 February.
Electronics of consumption, including mobile phones, computers and other technology accessories, make up the largest import categories with a total of about $ 427 billion of value imported from China in 2023.
From Canada, the US imports many cars, car portions and energy -related products, including raw oil, oil gas and refined oil.
Mexico exports include cars, car parts, electronics, raw oil, medical instruments, beer and agricultural products.
Shaheen said its blooming act has the support of the Center for American Entrepreneurs, the Chamber of Commerce and National Entrepreneurship/American Pacific, the future, most of the small business and women affecting public politics.
Data from the SBA show that New Hampshire had 136,506 small businesses in 2023, which is 98.9% of all state businesses. Small businesses accounted for 49.2% of New Hampshire employees in 2023.
Earlier this year, Goldman Sachs presented what he is calling “Small Business Policy Book: Winning Strategies to promote economic growth” to make the current US congress session aware of issues that are of great importance for small businesses.
Among the suggestions in the game book:
- Change Pension Start Credit and Improve Paid Family Tax Credit to help small employers compete with larger corporations
- Update child care tax loans and strengthen programs to expand the labor market for child care in support of working parents.
- Encourage partnerships between small business management resource partners (SBA) and workforce programs to compensate for training costs and UPSKill workers.
Goldman Sachs created the game book through his 10,000 voices of small businesses, in collaboration with the Bipartisan Politics Center.
“At a time in which America is looking for a common sense, the two -party victories from Washington, lawmakers should not seek further than for small business policy games for strategies to help small businesses set up the economy in New Hampshire and across the country, ”said Scott Alton, owner of M&C Dresses and Gifts in Amherst and part of the 10,000 Voices program.
“This game book provides a road map for how policymakers can support small businesses owners so that we can flourish, grow and create jobs and opportunities in our communities,” he added.