WASHINGTON, DC — Today, following President Trump’s announcement of a new 50% tariff on Canadian imports, U.S. Representative Kelly Morrison (MN-03), a member of the House Small Business Committee, questioned Small Business Administration Associate Administrator Paul Fitzpatrick about how the tariffs will affect American small businesses.
Canada is one of the United States’ closest allies and Minnesota’s largest trading partner. Minnesota imports more than $14 billion in goods from Canada and exports more than $5 billion in goods to Canada each year. The new tariffs threaten imports on which many Minnesota small businesses depend and increase the possibility that Canada will impose retaliatory tariffs.
The Small Business Administration has proposed eliminating 15 of its 16 federal entrepreneurial-development programs, including a program that helps small businesses enter and expand in international markets. Combined with the new tariffs, these proposed cuts pose a serious threat to Minnesota small businesses that depend on trade with Canada and have already experienced the effects of tariffs during the past year.
Representative Morrison asked Associate Administrator Fitzpatrick how small businesses would be expected to navigate trade with Canada under these conditions. Fitzpatrick did not provide a clear plan for protecting affected businesses.
As a member of the House Small Business Committee, Representative Morrison has advocated for small businesses throughout her first term in Congress. Her work has included:
- Meeting with Minnesota small-business owners to learn how tariffs are affecting them;
- Seeking immediate tariff exemptions for small businesses;
- Pressing Small Business Administrator Kelly Loeffler to exempt small businesses from tariffs;
- Demanding that the Trump Administration rescind tariffs on Canada;
- Urging Speaker Mike Johnson to bring the House back for a vote to end the President’s tariff war;
- Introducing and passing the Rural Small Business Resilience Act, which helps rural small businesses recover from natural disasters; and
- Working to strengthen research and development opportunities for small businesses.
Transcript of Representative Morrison’s Remarks
REP. MORRISON: Thank you, Chairman Williams and Ranking Member Velázquez, for holding this hearing. Thank you, Associate Administrator Fitzpatrick, for being here today.
The leading concern I hear from small-business owners in my district is the difficulty of operating amid the uncertainty created by the President’s tariffs.
Many businesses are experiencing reduced profit margins, disrupted supply chains, and an inability to plan reliably because of these tariffs, putting the futures of their businesses at risk.
The President’s fiscal year 2027 budget proposes eliminating 15 of the 16 entrepreneurial-development programs, including the State Trade Expansion Program, or STEP. This program helps small businesses enter or expand in international markets.
One consequence of the President’s tariffs has been retaliatory tariffs imposed on the United States by other countries. These measures create even more uncertainty for small businesses interested in participating in international trade.
During the past year, as the President imposed tariffs on Canadian automobiles, aluminum, steel, and lumber, Canada responded with retaliatory tariffs against the United States. Those measures restricted exports to our northern neighbor for Minnesota small businesses.
Now, we must wait to see how Canada responds to the President’s new 50% tariff on Canadian goods.
Given the administration’s stated interest in increasing U.S. exports and balancing trade deficits, I question the decision to eliminate STEP at a time when small businesses need more assistance navigating trade uncertainty—not less.
How is the Office of Entrepreneurial Development helping small businesses in international markets navigate retaliatory tariffs?
ASSOCIATE ADMINISTRATOR FITZPATRICK: Congresswoman, thank you for the question. We support the administration’s policies promoting fair trade, which we believe support small businesses. As we travel around the country, we have encountered businesses adding shifts and receiving contracts they did not previously have. I recently met with a business in Wisconsin that—
REP. MORRISON: I’m sorry to interrupt, but how does your office plan to continue helping small businesses increase their exports? How will you help small businesses expand their exports amid retaliatory tariffs if the STEP program is eliminated?
ASSOCIATE ADMINISTRATOR FITZPATRICK: Congresswoman, thank you for the question. We have limited resources, and we will follow the law. We will distribute funding as Congress appropriates it. If Congress directs funding to STEP, we will administer that program.
###