Apple(US:AAPL) Benzinga·2025-12-30 03:39Core Insights - Small business owners, once a strong support base for President Trump's policies, are now facing significant challenges during his second term, with economist Paul Krugman labeling 2025 as a "miserable year" for them and predicting that 2026 will be even worse [1][2]. Impact of Policies - The combination of Trump's tariffs and strict immigration enforcement has created substantial operational difficulties for small business owners, particularly those reliant on imported goods and foreign labor [3][4]. - High tariffs have severely affected companies that depend on imports, while mass arrests of immigrants have disrupted businesses like construction that rely on foreign workers [4]. Disparities Between Small and Large Businesses - Large corporations have been better equipped to navigate these challenges by finding alternative suppliers and leveraging political influence, unlike small businesses that lack such advantages [4][5]. - The shift towards crony capitalism under Trump's administration has further marginalized small businesses, which do not have the political connections to secure exemptions from tariffs [5]. Rising Costs and Health Care Issues - Increasing health care costs are compounding the pressures on small businesses, with nearly half of adults receiving government health insurance either owning or working for small businesses, making the expiration of federal subsidies particularly impactful [6]. Consequences of Tariff Policies - Numerous small businesses have faced unsustainability and bankruptcy due to the effects of Trump's tariffs on India and China, leading to heightened input costs and canceled contracts [7]. - Over 90% of U.S. exporters are small or family-owned businesses, and the uncertainty surrounding tariff policies is causing significant distress among these entities [8].