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American businesses and workers will benefit from pro-growth tax policy but face challenges from the changing trade environment, U.S. Chamber Executive Vice President Neil Bradley told an audience of more than 1,000 small businesses on a CO— Small Business Update.

Pro-growth tax policy: The One Big Beautiful Bill Act prevented a massive tax increase from occurring at the end of 2025 and made key tax provisions permanent, including:20% qualified business income (QBI) deduction for pass-through businesses (LLCs and S Corps)

• 100% bonus depreciation for new capital investments
• Increased interest deductibility limits
• Immediate R&D expensing, retroactive to January 2022 for businesses with less than $31 million in gross receipts

And: Small businesses can now claim up to 50% (previously 40%) of the cost of offering on-site or off-site childcare for employees. They can also pool with other local businesses to access tax credits for shared childcare services.
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Tariff challenges: While the tax law offers certainty to small businesses, they continue to struggle amid rising tariffs, looming new tariffs, and ongoing uncertainty around trade.

• “Over the next six months, tariffs are likely to go up, not down,” said Bradley.
• The administration sent letters to countries with new tariff levels ranging from 20% to 50% that will go into effect Aug. 1.

Bottom line: “That has a real impact on small businesses,” said Bradley. “We know that many of those small businesses are struggling both with the tariff uncertainty and these higher tariff levels.”

Dig deeper:

• Tax Bill Will Deliver Permanent Relief for Small Businesses
• What Small Businesses Need to Know about Tariffs