HR 3986119th CongressIn Committee

Small Business Liberation Act

Introduced: Jun 12, 2025

Economy & Taxes

Standard Summary

Comprehensive overview in 1-2 paragraphs

H.R. 3986, the Small Business Liberation Act, was introduced in the House on June 12, 2025. The bill would exempt small business concerns from any duties that are imposed as a result of a national emergency declared by the President on April 2, 2025. Specifically, it would bar duties that are imposed under Executive Order 14257 (as listed in the bill’s text) from applying to goods imported by or for the use of small business concerns. The exemption uses the Small Business Act’s definition of “small business concerns” (as in 15 U.S.C. 632). In short, if enacted, eligible small businesses would not have to pay the duties triggered by the national emergency on imported goods they use or purchase for their operations.

Key Points

1Short title: The act may be cited as the “Small Business Liberation Act.”
2Core exemption: Duties imposed pursuant to the national emergency declaration (via Executive Order 14257) would not apply to goods imported by or for the use of small business concerns.
3Definition of eligible entities: Small business concerns are those defined by section 3 of the Small Business Act (15 U.S.C. 632), i.e., independently owned and operated and not dominant in their field, with size standards set by the SBA.
4Scope of coverage: The exemption covers goods imported by or for the use of small business concerns; it does not state exemptions for all imports, only those linked to the emergency duties specified by the act.
5Legislative status and process: Introduced in the House and referred to the Committee on Ways and Means. No Senate action or signature is noted in the text provided, and no sunset or expiration is specified.
6Fiscal/policy implications: The bill would reduce or eliminate duties for a subset of imports, potentially lowering costs for small businesses during the emergency but reducing federal duties revenue and possibly affecting how the emergency measures are perceived by other trading partners.

Impact Areas

Primary group/area affected- Small business importers and users of imported goods that fall under the national emergency duties; entities that meet the SBA’s size standards for “small business concerns.”Secondary group/area affected- Suppliers, distributors, and manufacturers that serve small businesses; employees of those small businesses; downstream consumers who rely on goods sourced by small businesses.Additional impacts- Government revenue and trade policy: Reduces the duties collected related to the emergency for a defined group, which could influence federal revenue and the broader response to the emergency.- Administration/enforcement: Would require Customs and Border Protection (and related agencies) to apply the exemption to qualifying imports; potential need for verification that imports qualify as “for the use of” small business concerns.- International considerations: Could affect trade relations or exposure to challenges if other countries perceive preferential treatment for small U.S. firms during a national emergency.

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