Main Street Feels the ‘Trump Slump,’ Braces for Recession

FOR IMMEDIATE RELEASE
March 7th, 2025

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Main Street Feels the ‘Trump Slump,’ Braces for Recession

Washington, DC — The latest jobs report delivered another blow to small businesses: unemployment rose to 4.1%, and job growth lagged at just 151,000 new jobs—well below expectations.

Small businesses are now bearing the brunt of the ‘Trump Slump’—mass layoffs, supply chain freezes, tariff uncertainty, and the dismantling of critical government functions. With the Atlanta Fed projecting a -2.4% GDP contraction in Q1, the economy is teetering on the edge of a ‘Trump Recession’ unless swift action is taken.

“Small business owners don’t need more chaos,” said Richard Trent, Executive Director of the Main Street Alliance, representing over 30,000 entrepreneurs nationwide. “In the past month alone, market turmoil has frozen hiring, disrupted key programs, and rattled confidence. There’s still time to correct this, but that requires President Trump and Elon Musk to work with Congress, follow the law, and restore stability. Main Street needs steady leadership, not chaos and cutbacks.”

“The last 6 weeks have been a seesaw of executive orders, clawbacks, and overall insanity that has made it almost impossible to continue to run my business.  When a parent loses their job, they can't pay for care but need the care to get a new one. Even if only two families pull their children, I will not be solvent and will need to seek other employment, leaving five other families without care to continue their employment. This will quickly become a death spiral on the economy”, said Corrine Hendrickson, owner of Corrine’s Little Explorers in New Glarus, WI

“It’s a tough time to be a small business owner,” Said Allison Vick, Owner of Little Blue Macaron in Raleigh, NC. “We’re used to the regular ups and downs of the economy, but the current state of affairs is unlike anything we’ve seen before. Our ingredient costs have skyrocketed—as eggs are over 50% of my cookie recipe. We’re having to raise prices and just hope our regulars and new faces will continue to support us, and we can tell how worried our employees and customers are about the state of the market. Access to health care hangs in the balance, the jobs report is abysmal, and our future financial security is entirely uncertain.”

“I’m a full-time entrepreneur focused on creating revenue-generating solutions for small businesses, and I recently became a shareholder in a local food and beverage company. Although the unemployment rate hasn’t changed dramatically, the fact that job growth came in at only 151,000 signals a potential economic crisis for small markets and rural towns if strong leadership doesn’t intervene. I recently spoke with the mayor of a tiny Oklahoma town—population 120—who has been waiting nearly ten months for $40,000 in federal grants to fix vital water and sewer infrastructure; these delays not only threaten the health of older residents but could push families to relocate elsewhere. It’s a clear reminder of how mass layoffs, murky global small business relations, and weakened government support can devastate small business. That’s why I’m urging policymakers to unfreeze critical federal funds and consider targeted tax incentives to protect our most vulnerable populations, rebuild confidence, and keep us from sliding into another recession,” shared Apollo Woods, shareholder and Chief Operating Officer of the Pump Bar.

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Main Street Alliance (MSA) champions Main Street voices to create a thriving economy. We cultivate a network of entrepreneurs, connecting them with resources to build sustainable enterprises and uplift their communities. Our membership drives state and federal policymaking that gives a fair shot to small businesses and strengthens local economies nationwide.