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Small businesses divided on economy as tariffs, uncertainty persist

One index shows 40% of small business owners said the U.S. economy was in good health in the third quarter, up six points from the second quarter of this year.
Small business owners feeling uncertain
An "open" sign sits outside a small business.
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Small businesses are often considered the backbone of the American economy and after several months of tariff whiplash, small business owners report mixed feelings about where things stand.

"I don't think we are out of the woods yet," said Ron Kurnik, owner of a Michigan coffee shop.

Kurnik said he feels the same about the economy as he did when Scripps News spoke to him and other small business owners over the summer.

"I wouldn't give it just a feeling of optimism now at this point," he added.

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Earlier this year, Kurnik raised his prices because of tariffs — and he worries he might have to do it again. Others in the small business community, however, are more hopeful.

According to an index from the U.S. Chamber of Commerce, 40% of small business owners said the U.S. economy was in good health in the third quarter, up six points from the second quarter.

"If you ask what is the one word to describe it, I'd say resilient," said Tom Sullivan, president of small business policy at the Chamber.

Sullivan said small business owners have particularly benefited from a provision in the massive tax and spending law Congress passed earlier this year that allows them to write off certain expenses in a single year. However, he acknowledged tariffs, inflation and the threat of a government shutdown are weighing on business owners.

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"Those three things do contribute to uncertainty, but small businesses are figuring a way to get through it all," Sullivan said.

Katrina Golden, who owns a baked goods shop in Georgia, is among those trying to adjust. She said the government could help by passing the Small Business Relief Act. The legislation, introduced in September, would exempt small businesses from some tariffs.

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