Speaker 1 (00:00):
[inaudible 00:00:00].
Dominick Purnomo (00:00):
Good to see you again, sir.
Senator Schumer (00:00):
Nice to see you.
Dominick Purnomo (00:00):
Good to be here.
Senator Schumer (00:00):
Thank you. I was in his restaurant. Loved it.
Speaker 2 (00:00):
Hi.
Senator Schumer (00:00):
Hi.
Speaker 2 (00:00):
[Inaudible 00:00:09].
Senator Schumer (00:00):
Yes. Nice to meet you, Eileen.
Speaker 3 (00:00):
Hi, Alison Dick.
Senator Schumer (00:00):
Yes, how are we, Alison.
Speaker 4 (00:00):
[inaudible 00:00:16].
Senator Schumer (00:19):
Nice to meet you. Okay. Thank you all. Yeah, it's across the subway.
(00:25)
All right. It's great to be here, and I just want to acknowledge all the people who are here who I had the pleasure of meeting. First my colleagues, Senators Klobuchar, Markey, and Smith, our small business owners from across the country. We have Dominick Purnomo, owner of Yono's Restaurant in Albany, New York. I've had the pleasure of being there and seeing what a great job he does. We have Beth Benike, founder and CEO of Busy Baby in Zumbrota. Zumbrota?
Speaker 5 (00:50):
Zumbrota.
Speaker 6 (00:51):
Zumbroda with a D.
Senator Schumer (00:57):
Zumbrota. Zumbrota, that's an interesting name. We have Amy Leimbach, the owner of Big Bee and Little Bee in Caesar Park, Texas. We have TJ Semanchin, CEO and owner of Wonderstate Coffee in Madison, Wisconsin. We have Andrea Deutsch, owner of Spot's - The Place for Paws, in Pennsylvania. That's P-A-W-S.
Andrea Deutsch (01:24):
Thank you.
Senator Schumer (01:24):
So they don't think you're resting, you know, pause. Johanna Hellrigl from Washington, D.C. We have Ivy Mix from… Oh, Johanna's restaurant or business is called Ama. Did I say it right? She may not be here, so no one will correct me. We have Ivy Mix, Leyenda, it's a business in New York City. We have Vicki Lee Parker-High, North Carolina Sustainable Business Council. We have Hollis Wells Silverman, the Eastern Point Collective. And we have Richard Trent of the Main Street Alliance, he's the executive director. So we have a lot of small businesses represented here. And you know why. Because they're hurting.
(02:12)
As all the folks behind me know all too well, President Trump's trade war is economic arson on our main streets. President Trump's trade war is economic arson on main street. And these folks are getting scorched. Trump's tariff taxes, jacking up prices, smashing supply chains, forcing small shops to raise costs, lay off people, or worse yet, close their doors altogether.
(02:41)
While Trump has been busy helping the billionaires, main street pays the price. While Trump has let mega corporations, CEOs and his donors have his ear on exemptions when they want relief from tariffs, small business owners have been left out to dry. You're a big business. You can knock on the White House door and say, "I need an exemption. I need this," and Trump goes along. These people don't have that access to the White House and Trump doesn't even seem to care.
(03:12)
So today's Senate business and Senate Democrats are showing America the faces, businesses, and communities impacted by Trump's devastating tax war. Trade war, sorry. He's had a bad tax war too.
(03:25)
Today, Senator Markey will announce legislation, that I'm proud to co-sponsor, to exempt small businesses from the president's destructive tariffs. Protecting small businesses shouldn't be a partisan issue. It's a national priority. And let's not forget, the 35 million small businesses in America employ 59 million people. That's about half the private sector jobs in the country, are businesses like those depicted here. Small businesses play a significant role. They're even more needed in rural communities. And there they account for about 54% of rural workers. They're the backbone of our economy, yet right now, they're bending over backwards to make ends meet, to not charge their customers more, to not lay off employees. That's the dilemma they're all faced with.
(04:17)
72% of small businesses say erratic tariff policies create, quote, "a whiplash effect", disrupting planning and long-term decisions. In that way, small businesses and big businesses are alike. They can't plan unless they have certainty. They can't make that order that'll come in three months from now, if they think no one… the price is going to go way up. 81% of small businesses say thanks to President Trump's tariff tax they would be forced to raise prices for consumers, and many indicated they would lay off employees as a direct result of increased costs.
(04:56)
I've visited many small businesses from one end of the state to the other. And you should see the anguish on the faces of these small business people. They have put their whole souls, their blood, sweat, and tears into building these businesses, into creating a team of employees. And now they're either going to have to charge their dear customers, who they love, more, or lay off employees who they cherish. It's an awful decision, an unnecessary decision.
(05:26)
Already, employment at the smallest of small businesses has declined by 3%. We have lost 366,000 jobs, since Trump took office, in these businesses. And not only did Trump put them in an awful spot, he's clueless to the real world ramifications. He was asked yesterday by Welker, Kristen Welker, about small business. Trump highlighted, incorrectly I might add, how wonderful tariffs are for big businesses, and how he doesn't care one iota about the concerns of small businesses or American families suffering from high prices. He just didn't care. He went on bragging about himself. I watched the clip. When asked if he's considering relief for small businesses, Trump said, quote, "they're not going to need it." He was condescending and dismissive. Well, tell the folks behind me that they're not going to need it, President Trump.
(06:33)
Senate Republicans had a chance last week to stop Trump's trade war, but instead they stood with him. We are giving them another chance now by working with us to take up the Small Business Liberation Act. Senate Republicans' refusal to stop this trade war makes them complicit as Donald Trump in hurting these businesses and millions more across the country. Small businesses are the backbone of this country. It's time for Senate Republicans to grow a backbone and defend small businesses.
(07:10)
And our next speaker is my good constituent and owner of Yono's, a great restaurant that has an Indonesian flavor to it that is just top-notch. And that is Dominick Purnomo. Dominick.
Dominick Purnomo (07:26):
Thank you, Leader. Let's hear another one. Glad to be here. And just a quick note, Leader Schumer, just want to thank you once again on behalf of our industry for all the work that you did for us for the Restaurants Act. And that's what's kept us both a lot the last four years.
(07:40)
Onto today's topic. The proposed retaliatory tariffs are disruptive and detrimental to all facets of the restaurant and food service industry. An industry that accounts for $1.6 trillion, or roughly 4% of the entire GDP of the United States. One in 10 jobs, 15.1 million in total is in the food service industry, making it the nation's second-largest private sector employer. Yet the proposed retaliatory tariffs and imports from key trading partners, like Canada, Mexico, and China, threatened to destabilize the vital sector which has struggled to regain its footing since the COVID-19 pandemic.
(08:18)
These tariffs will make it harder and more expensive to source the high-quality ingredients and goods our guests have cherished for nearly four decades, driving up costs to the tune of $12.1 billion and disrupting supply chains nationwide, or worldwide. The restaurant industry is uniquely vulnerable to supply chain disruptions due to our resilience on perishable products, some costing hundreds of dollars per pound. Ingredients like fresh produce, seafood, specialty items must be turned around in as little as 48 to 72 hours to meet the stringent health code standards, and deliver the quality our guests expect. Uninterrupted flow through our reports is essential to ensure freshness and safety. The proposed 25% tariffs on imports from key trading
Dominick Purnomo (09:00):
Partners like Get Into Mexico will slow this critical supply chain risking $2 billion in spoiled goods. At a time when 13% of the United States population is food insecure, that is unconscionable. For an industry already battered by post-Covid challenges, these unnecessary tariffs would be catastrophic driving up costs and endangering the 15.1 million jobs we support. We urge the administration to exempt food and beverage products from tariffs to safeguard our nation's food supply, protect consumers, and prevent devastating economic losses. The restaurant industry has endured relentless challenges over the past five years. Supply chain breakdowns, labor shortages, and soaring inflation. Tariffs could deliver a devastating blow, potentially forcing closures and jeopardizing millions of jobs. Unlike other sectors, the food industry maintains a near-balanced trade profile with a minimal trade deficit or surplus depending on the year. Targeting food and beverage imports is a misstep that punishes an industry already on the ropes.
(09:57)
Restaurants are more than just commerce. They're the heart and soul of any community. They're a place for us to gather, to share, to communicate, and to engage. We are the last light left on Main Street. They're often the first step of young people looking to join the workforce. Restaurants are the largest employers of marginalized people, of single mothers, of immigrants. It offers the largest access to second-chance employment for those looking to rebuild their lives after being rehabilitated during incarceration. And it offers wonderful employment for military veterans assimilating back to the workforce after the calling to protect our nation. We urge the administration to accept the food and beverage products from these tariffs. Doing so will stabilize costs, preserve access to essential ingredients like Mexican produce and Canadian meat, and protect the livelihoods of 15.1 million American workers. If the administration is truly committed to safeguarding American jobs and strengthening the economy, eliminating these tariffs is a crucial step to secure the future of the food service industry, one of America's most resilient and cherished sectors. Thank you.
Senator Schumer (11:00):
Thank you, Dominic. Great job. [inaudible 00:11:03]. And our next speaker, and I'm going in the set order here is and the set order is here. Senator Amy Klobuchar.
Senator Amy Klobuchar (11:13):
Oh, you can go. Okay. All right. Well, thank you so much, Leader Schumer. Thanks for your leadership on this. Thanks to my colleague, Senator Smith, and mostly thank you Senator Markey for having the wherewithal to think of this great idea because we are in a whole lot of trouble in general in the economy. We know that. Americans know it when you see the numbers of the president's first 100 days, but it is small businesses and small farms and small ranches that are really going to be bearing the brunt of this.
(11:48)
I know having talked to them, I've just been with a bunch of farmers and they're losing their soybean markets. They don't know what they're going to do. They and the small business owners that are standing here with us today, they do not have a direct dial number for the White House. They do not have the president's cell phone. They are not like a major, major CEO of a Fortune 500 company that can call and get a meeting with the White House and then get their products exempted. They weren't invited to the JPMorgan secret meeting with the Treasury Secretary, where the Treasury Secretary gave them little tips on what was going to be happening here. They're excluded from all of that.
(12:27)
And that in addition to what this is doing to our economy as a whole, to big business, small business, the $4,000 tariff tax for every family, the $200 grocery tax for every family, but the unfairness and the destruction of the competitive marketplace for small businesses will have longer term effects than anyone can even imagine. So one example of the small business here today is a Minnesotan, and we're really excited she is here. Her name is Beth Benike. The leader mentioned her. She was just, this is really like, we call ironic. She was at the Small Business Administration just before this. Is that right? To get the award, get an award. She's Minnesota's Entrepreneur of the Year. She makes baby equipment for high chairs. That's why it's called Busy Baby because they throw things off the high chairs.
(13:27)
She has just been getting her products on shelves all over in major retailers. And then she is hit by these tariffs. This is a living example where they're giving her an award for her incredible entrepreneurship as a small business, and then they're socking with her, with these tariffs that make it impossible to run her business. And with that, I turn it over to Beth.
Beth Benike (13:57):
All right. Hi, I am Beth Benike. I am a 10-year army veteran active duty, served in Bosnia, Iraq, Kuwait, Kosovo. I had my son, Christian eight years ago, and I had an idea for a baby product, and I made a prototype for myself and one for my friend, and she said, "Oh my gosh, this thing is so useful. You should make it for real." I thought hmm, how would I do that? And I found a product developer who helped me come up with the design, who helped me find a manufacturer. And because this was a product that never existed before, no US manufacturer was willing to take the risk on making it. They need to make hundreds of thousands of units, not 2000 units.
(14:35)
So I started my manufacturing in China, and I have been having wonderful quality, wonderful relationships with my factories in China for eight years. When I got into Walmart shelves and only had four months to get my product ready and to the US and on those shelves, they made it happen. They are wonderful partners to me. And I currently have three months worth of inventory sitting at my factory that I cannot bring to the US. I have maybe two months worth left in my warehouse in Minnesota. And when that's gone, I have no more revenue. I cannot pay my employees, I cannot pay my bills, I cannot pay the loans which I have leveraged my house against. So we could lose our house. I do not have the $230,000 that were just immediately dropped in front of me to get my products into the US. So I am asking, begging for support from both parties to support our small businesses and get rid of these tariffs on US-owned small businesses. It doesn't just affect me. When I go out of business, it affects all those contractors that I pay to help me with my business. All those American-owned businesses, my trucking company that brings me my container, the bookkeeper and accountants and marketing teams that work with me, they now don't get to have the revenue they're getting from me. And I'm just one business that's at risk of going out of business. There are thousands of us. So this is hurting more than just people importing from China.
Senator Schumer (16:15):
Thank you. Well done. Senator Markey, the sponsor of our great legislation.
Senator Markey (16:19):
Thank you. Thank you so much. Thank you, Senator Schumer. Thank you for all of our qualified, great small business leaders who are here today. This National Small Business Week comes during a time when small businesses are being hit hard by Donald Trump's reckless, unnecessary tariffs, his policies. Trump's tariffs are a disaster for small food vendors like those based out of CommonWealth Kitchen in Boston. Executive director Jen Faigel is with us today. She told me that she has imports coming in from 15 countries. She's a small business. This is without question something that threatens her.
(17:08)
Small businesses aren't like Fortune 500 companies. They just can't ride it out. They live day to day, week to week, month to month. They just can't wait three months, four months, five months, six months, a year for something to get figured out through the White House. They live day to day, and that's why she is seeing price increases. That's why all of the people behind us are seeing containers, basic ingredients, everything from eggs and sugar to vanilla and vinegar all increasing. And even with the 90-day pause, small businesses can't afford this cloud over their head, or the remaining reckless Trump tariffs could return in a nanosecond. And that's why with Senator Schumer
Senator Markey (18:00):
… of introducing the Small Business Liberation Act with Senator Gerono to provide an exemption for small businesses in our country from Trump's Liberation Day. Because it is not Liberation Day, it is obliteration day for small businesses. It will be a massive economic liquidation day for small businesses. We have 7 million people in Massachusetts and we have 734,000 small businesses. And the same percentage exists for every single state in our country. They are Main Street. These aren't the firms listed on the Nasdaq or the S&P 500, but they are the lifeblood of our economy.
(18:45)
97% of all businesses that trade internationally are small businesses, and they represent 30% of all trade for our country. And that's who these people are behind us today. Those are the people who can't afford to run the risk that Trump does not know what he's doing, because they are the ones who are going to become the economic roadkill for this economic experiment which he is running. So he's shown his willingness to give relief to CEOs of the big tech giants and grant them an exemption, Apple gets an exemption, but how about people who need Apples for their businesses? Do they get a relief? It's only fair to provide an exemption for small businesses that operate on razor-thin profit margins.
(19:34)
If Republicans are serious about helping small businesses, they need to stop listening to the ones in their state. They need to stop listening to Rotarians, to Kuanians, to the Chamber of Commerce not here in Washington DC but in the small towns and cities all across our nation. So I thank you, Leader Schumer, for hosting this important event for uplifting the stories of small businesses being harmed and working for us to introduce this legislation, which will give relief to all of the small businesses in our country to Trump's economic experiment. Thank you.
Senator Schumer (20:12):
Thank you, sir. This small business tax that the tariffs bring about affects red states, blue states, and purple states. We are here to welcome Allison Vick, owner of Little Blue Macaron and Little Blue Bakehouse in Raleigh, North Carolina, a purple state if there ever was one.
Speaker 7 (20:33):
Hi. Thank you so much for having us. Thank you for giving us this platform. Like you said, I own a bakery in Raleigh, North Carolina, but we're not just a bakery, we are an incubator kitchen for small bakery businesses. So we house small bakeries that are trying to figure out their place in the economy and in the marketplace. It is so hard to do that when you're constantly up against a tidal wave of things coming against you like tariffs, taxes, even the cuts to SNAP, Medicaid. Anything that's on the chopping block ultimately affects us.
(21:13)
We're already seeing packaging delays, so we're not even able put pastries in the boxes that we've been using for two and a half years because our distributors are not sending them to us because they're not able to obtain those items. And these are manufacturers that have US- based products but require things that come from overseas to manufacture their product. So we're not able to receive them. We're seeing increased costs in kitchen equipment. We're just crossing our fingers and hoping that the equipment that we use every day doesn't require a new part and doesn't break down on us because we don't have the ability to wait three months to see if we're going to be able to get that or to pay four times the amount that we would've paid for that only so many months ago. Small businesses are the pillars of our communities, but we can't support all of the weight. We need help. We need these tariffs to be taken out of the realm of things that we are responsible for. We need your help. Thank you.
Senator Schumer (22:19):
Thank you. Great job. Now we have Senator Smith from Minnesota.
Speaker 8 (22:27):
Good afternoon, everybody. Thank you, Leader Schumer and Senator Klobuchar and Senator Markey for your legislation. And especially thank you to all the entrepreneurs who are here today to tell about how your businesses are affected by this chaos and uncertainty that President Trump's reckless trade war is causing for all of you.
(22:46)
My constituent, Beth, who is with us today, was just named, as Senator Klobuchar says, Minnesota's Small Business Person of the Year, and her baby products were making their way onto the shelves of some of the biggest retailers in the country. She should be celebrating that, but instead, she is worried about keeping her business afloat. And as Beth says, that's heartbreaking, but it is also real. And you can see from the people standing with us today that this is not a political issue for them, this is not about politics. This is about the survival of their businesses, the survival of their dreams. I think that Beth's story shows us so clearly that the randomness and the chaotic approach to tariffs are putting small businesses like hers and all of these at risk and they are hurting people's capacity to make payroll and pay rent. And they are hurting our economy and they are hurting American consumers.
(23:39)
It is ironic that our Republican colleagues are celebrating National Small Business Week this week when what is really happening to American small businesses is just a huge challenge. Small business owners, as we know, are resilient, they are creative, and they are constantly trying to figure out how to make it work. But how can you do that when you have no idea of what is around the next corner, you have no idea how you're going to be able to control costs, and you don't have a million dollars sitting in your bank account to help you navigate the ups and downs of this chaos that has been unleashed?
(24:16)
I think that one of the things that drives me the most crazy about this is that we have big companies like Apple who have a connection in the White House, they know who to call, they have the wherewithal to give a million dollars to President Trump's inauguration ceremony, they get seated right up there on the dais on inauguration day when the people standing with us today have no capacity to accomplish that. And what happens? Apple gets a carve out and these guys are left holding the bag. That is wrong, and we cannot put up with it.
Senator Schumer (24:50):
Thank you, Senator Smith. Good job. We have two more small business people, TJ Semanchin, owner of Wonderstate Coffee in Madison, Wisconsin, purple state, and Amy Leinbach, owner of Big B Little B in Cedar Park, Texas, a red state. We're from all over.
Bernard (25:11):
Thank you, Leader Schumer. So my name's TJ Semanchin. We import coffee from farmers from around the world. And right now I'm facing that all the coffee that we import is going to get hit with a tariff. I think the thing I want to underscore, there's been a lot of word shared, a lot of personal stories shared, but that we here as small businesses, we are on the front line of these tariffs. We are the ones who are paying it. I had to go to my bank and ask for additional line of credit just to finance the tariff tax. We are the ones who need to come up with the money, and if we can't come up with the money, in the best case, our product is at risk. So everything that we buy is now at least 10% more. We have countries that we buy from that are on the reciprocal tariff list. And so I don't even know what the cost of some of my product is going to be that's going to be shipping to me pretty soon. Again, I got into coffee because of relationships with farmers I have in Latin America and Africa. That our supply chains are very personal to us. There are real people on the other end of the supply chain. These are relationships I've developed over two decades in the coffee industry. These are complex supply chains, and we are at risk of disrupting that. And these are things we can't just change overnight. I think anyone who knows about business, about importing international trade, any of that, would know this. But these are the simple rules of a business, that they're depending on relationships that take months and years to develop. We are at risk of losing those relationships.
(26:55)
I also want to just share with my colleagues up here and ask them for
Bernard (27:00):
Support for small businesses. Thank you.
Senator Schumer (27:02):
Thank you very much. Thanks Bernard. Next Amy. Oh, let me just say your business. Owner of Big Bee, Little Bee in Cedar Park, Texas.
Amy Leinbach (27:17):
Hi, my name is Amy Leinbach. I own Big Bee, Little Bee, along with my daughter, Marlo, who is here with us today. We invent planet-friendly products that make daily routines easy for families. We manufacture all of our products in China, including hers. Initially, it was out of necessity because we began manufacturing in the United States years ago, but it wasn't scalable. So we moved to China, like I said, out of necessity, and now we love working with them. They're our friends, they're our teammates. They put their heart and soul and time on the line to support our dreams.
(28:06)
So as it stands right now, Marlo and I have a few months worth of inventory. We were one of the very lucky ones to receive a container of inventory at the beginning of March. Now, it feels a little funny to have this particular business strategy, but we intend to stretch that inventory as much as possible by pulling back our advertising and slowing our sales. Why? Because it's important for us to stay visible as long as possible so we can just stay relevant in the market.
(28:45)
But then what? We have no orders in production right now. So when we stretch that inventory to the end of quarter three, at the very latest, we run out of inventory. We lose sales. We have zero cash flow. And I don't think I need to explain what happens to a small business when you have no cash flow. And I refuse to think of where our business might be at the end of this year.
(29:23)
We need help from both sides. We are begging you. We need this help immediately, and we appreciate, we truly appreciate what you're doing for us. We need more help and we need it now. Thank you.
Senator Schumer (29:39):
Thank you. Thank you for these great testimonies. It's clear are three things, many things, but three things. Number one, these people struggled in their businesses. My dad was a small business man. I know how small business people struggle. Two, they love their businesses. Three, they hate the tariffs and they want both sides of the aisle to come together and get rid of them for small business. Questions on this subject? Yes ma'am.
Speaker 9 (30:05):
Senator Joni Ernst and Kelly Loeffler of Small Business Administration are pushing legislation right now that would max out small business loans and double them from 5 million to 10 million. Is it a viable solution to make more capital available?
Senator Schumer (30:19):
Well, the bottom line is ask these people. They don't want to incur more debt. I didn't have to ask them. That's more debt. One of the things small business people struggle with is the debt they have to repay. They don't need more. Tell Senator Ernst to supported our bill. That's what they want. Yes.
Speaker 10 (30:38):
Is it an option to use Senate procedural rules to make this a privileged resolution to bring to the floor?
Senator Schumer (30:43):
Well, we explore every way we can look to get legislation to the floor, and we will explore this one too. Yes.
Speaker 9 (30:50):
Senator Markey, what have you been hearing from your Republican colleagues and counterparts on this bill that you're here to introduce?
Senator Markey (31:05):
Well, again, we have SBIR. We have STTR. They're great programs, and we're going to try to work with the reformers to save them, but that's not who these people are. These are people who don't want to have to deal with the Small Business Administration. They just want them to be left alone so they can run their businesses that they created by themselves. That's who they are. That's who most small businesses are in our country. So what we're hoping from the Republicans is that they'll listen to small businesses, who if they needed it, they would go to the SBA, but that's not what they're asking for. All they're saying is exempt us from the tariffs and we'll go back to work for the country. We'll employ people, we'll continue to increase productivity. So we're not hearing that from the Republicans. So even the proposal that you just heard isn't relevant to their lives, they just want to be left alone on Main Street of USA, all across the country.
Senator Schumer (32:02):
And I'll say one thing, I don't know what we're hearing from our Republicans, but I'll tell you this, our Republicans are hearing from small businesses across the country, because they're really hurting. These people are just such fine people, the backbone of America, and they're hurting for no good reason and we have to help them. Thank you everybody.
Senator Markey (32:23):
These tariffs have already cost small businesses like these $26 billion since this Liberation Day started or Liberation Day started, and it can't continue indefinitely. They don't have that right.
Senator Schumer (32:35):
Thank you everybody.
