Tariffs Harm Small Businesses and New Hampshire Economy

The Unseen Costs of Conventional Politics: Chris Pappas on Navigating Tariffs, Small Business, and the Path to Real Progress

This conversation with Congressman Chris Pappas, framed within the context of his Senate run and the upcoming 2026 election cycle, reveals a critical undercurrent often missed in political discourse: the tangible, downstream consequences of policy decisions and the hidden advantages of embracing immediate difficulty. Pappas, drawing from his experience as a small business owner, argues that conventional political approaches often create self-inflicted wounds, particularly through economic policies like tariffs that disrupt supply chains and harm local businesses. The hidden consequence for many is not just higher prices, but a stifling of growth and job creation. This analysis is crucial for voters, small business owners, and policymakers alike who seek to understand how to foster genuine economic progress and build durable political capital by focusing on practical solutions rather than performative politics. It offers a blueprint for those willing to look beyond immediate wins for long-term, sustainable advantage.

The Cascading Impact of Tariffs: Beyond the Sticker Price

The conversation with Congressman Chris Pappas offers a stark illustration of how seemingly abstract economic policies can create a cascade of negative effects, particularly for small businesses and local economies. While many discussions around tariffs focus on the immediate increase in consumer prices, Pappas highlights a more insidious, systemic problem: the disruption to supply chains and the resultant uncertainty that cripples business operations and growth. His anecdote about a small business owner paying an extra $400,000 in tariffs over a year underscores that this isn't just about the cost of goods, but about a business's ability to function, hire, and expand.

This isn't a simple cause-and-effect where tariffs lead to higher prices. The reality, as Pappas details, is far more complex. Tariffs create a ripple effect that impacts everything from domestic manufacturing to tourism. He points to the disruption in trade with Canada, a close neighbor and significant trading partner for New Hampshire. This disruption doesn't just make imported goods more expensive; it dries up export markets for local industries like timber and logging, and crucially, it deters critical tourism. The summer boardwalk businesses in Hampton, New Hampshire, suffering from a lack of Canadian visitors, serve as a potent example of how international trade disputes directly translate into lost revenue and economic stagnation at the local level. This demonstrates a failure of conventional wisdom, which often views tariffs as a tool for national economic protection, without fully accounting for the intricate web of interconnectedness that defines modern economies.

"This is not helping New Hampshire families and communities. It's making things a lot worse--people just don't get it and the uncertainty that's come about as a result is just impossible for folks to navigate and read."

-- Chris Pappas

The implication here is that policies enacted with the intention of benefiting one sector or achieving a specific political goal can, through unforeseen feedback loops, actively harm the very communities they are meant to serve. The uncertainty generated by these erratic policy shifts makes long-term planning impossible for businesses, leading to a reluctance to invest, hire, or innovate. This creates a competitive disadvantage not just against foreign entities, but against businesses in countries with more stable trade relationships. The delayed payoff of stable, predictable economic policy, though less immediately gratifying than the perceived strength of imposing tariffs, builds a far more resilient and prosperous economy over time.

The Small Business Anchor: Grounding Policy in Lived Experience

Pappas's background as a small business owner, running a four-generation family restaurant, provides a unique lens through which he views public policy. He articulates that this experience is not just a talking point but a fundamental anchor for his public service, offering an intimate understanding of the daily challenges faced by Main Street businesses. This perspective directly counters the common tendency in policymaking to focus on large corporations or abstract economic indicators, often neglecting the nuanced needs of the small and independent businesses that form the backbone of many communities.

The restaurant industry, by its very nature, demands constant adaptability and a customer-focused approach. Pappas describes the daily reality: "any number of things can go wrong," requiring an "all hands on deck moment." This firsthand experience with operational complexities, vendor relations, and the relentless pursuit of customer satisfaction provides him with an invaluable framework for understanding how federal policies intersect with real-world business operations. He notes how this perspective became particularly acute during the pandemic, highlighting the critical role of government support -- or lack thereof -- in small business survival.

"When you've run a small business, it's often hard for you to really appreciate where the business stops and where the community starts. I mean, you are just very much a part of the community."

-- Chris Pappas

This deep connection to his community, forged through the demands of running a business, allows Pappas to advocate for policies that are not just theoretically sound but practically beneficial. His focus on workforce development, sensible tax policy, supply chain resilience, and access to capital for small businesses stems from a lived understanding of their importance and their unique vulnerabilities. This grounded approach offers a competitive advantage because it prioritizes tangible improvements for a broad base of constituents, fostering loyalty and trust. The "delayed payoff" here is the cultivation of a stable, supportive environment for small businesses, which in turn drives local economies and creates sustainable job growth, a far more enduring form of progress than the short-term political wins often pursued.

The Generational Shift: Embracing New Voices for a Fractured System

The conversation touches upon the need for a generational shift in politics, particularly within the Democratic Party. Pappas, as a younger candidate running for the Senate, embodies this transition. He acknowledges that while Senator Shaheen, a respected figure, is at the top of her game, there's a palpable hunger among voters for "new voices" and a "generational passing of the torch." This isn't merely about age; it's about bringing fresh perspectives and a different approach to governance, especially in a political climate characterized by division and what he describes as "performance as opposed to a means to an end."

The current state of Congress is depicted as highly unproductive, with a focus on "politics as a performance" rather than problem-solving. Pappas notes the frustration with an environment where "so many folks in the house and senate are content to just give away their agency to this president and this administration." This highlights a systemic issue where the legislative branch’s ability to act as a co-equal branch of government is undermined by partisan gridlock and a lack of genuine engagement. The use of "discharge petitions" as the primary means to get legislation passed--a mechanism for forcing a vote on a bill--underscores the dysfunction.

"This is going to be a battleground Senate race. New Hampshire is not a blue state. Republicans have a trifecta at the state level. They have a five-point registration advantage on Democrats."

-- Chris Pappas

Pappas argues that the path forward lies in embracing a more grassroots, community-focused approach, mirroring the intimate political culture of New Hampshire. This involves listening directly to people, understanding their challenges, and working to bridge divides, even with those who hold different political views. The advantage of this approach is that it builds genuine connection and trust, fostering a sense of shared purpose. The "discomfort now" comes from engaging in difficult conversations and seeking common ground, but the "lasting advantage" is the creation of a more functional and responsive political system. The younger generation, represented by the college students and young professionals in the discussion, expresses a desire for transparency, action, and a move away from "cruelty" and "meanness" in politics, signaling a clear demand for leaders who can translate words into tangible improvements in people's lives.

Key Action Items

• Immediate Action (Next 1-3 Months):

  • Engage with Local Small Businesses: For policymakers, conduct regular, informal listening sessions with small business owners in your district to understand their most pressing challenges related to supply chains, tariffs, and operational costs.
  • Advocate for Tariff Review: Support legislative efforts that call for a comprehensive review of existing tariffs, focusing on their impact on domestic small businesses and consumer prices, rather than solely on broad economic theory.
  • Promote Transparency in Policy Communication: Develop clear, concise communication strategies that explain the downstream effects of proposed legislation, particularly economic policies, to constituents. Avoid jargon and focus on relatable impacts.

• Medium-Term Investment (Next 6-12 Months):

  • Develop Workforce Training Initiatives: Invest in and promote local workforce development programs that align with the needs of small and medium-sized businesses, addressing potential labor shortages exacerbated by economic uncertainty.
  • Support Supply Chain Resilience Programs: Advocate for and implement federal and state programs that help small businesses diversify their supply chains and reduce reliance on single sources, mitigating the impact of future trade disruptions.
  • Champion Bipartisan Problem-Solving: Actively seek out and support legislative efforts that require compromise and collaboration, even on less visible issues, to rebuild trust in the legislative process.

• Long-Term Investment (12-18+ Months):

  • Foster a Culture of "Durable" Policy: Prioritize policy solutions that offer long-term stability and predictability, even if they require more upfront effort or delayed gratification, over quick fixes with compounding negative consequences.
  • Build Cross-Generational Political Engagement: Create platforms and opportunities for younger generations to engage meaningfully in the political process, ensuring their voices and concerns are integrated into policy discussions and campaign strategies.
  • Measure Success by Tangible Community Impact: Shift the focus of political success from electoral victories or partisan wins to measurable improvements in constituent lives, such as reduced costs, increased job opportunities, and enhanced community well-being.