As businesses continue to navigate a post-pandemic economy while dealing with tariffs and ripple effects from the Iran War, Hertel sits down to discuss ways the state can help provide relief
 

ST. CLAIR SHORES, Mich. (May 19, 2026) — Last week, Sen. Kevin Hertel (D-St. Clair Shores) gathered with small business owners from communities across Michigan’s 12th Senate District to discuss the economic challenges facing local businesses and explore ways the state can help provide relief. Amid growing uncertainty surrounding rising costs due to tariffs and trade barriers, business owners shared firsthand insight into the pressures impacting their operations, employees, and long-term growth.

“From family-owned restaurants and cafés to neighborhood shops and service providers, small businesses create jobs and economic opportunity while bringing people together. But right now, they’re being squeezed from every direction, and the current economic climate is making it harder for them to keep their doors open,” said Sen. Hertel. “As our team works to identify solutions that will help small businesses weather these challenges and stay competitive and thriving here in our community, we’ll keep engaging directly with the business owners and workers who are experiencing these pressures firsthand.”

While restaurants and other small businesses continue grappling with the fallout of federally imposed tariffs, the conflict with Iran is creating new uncertainty and significant disruptions across the service industry — driving up inflation, causing a drop in customer traffic, and increasing operational costs. Recent reports show nationwide chains such as Wingstop and Domino’s experienced weak sales growth in their latest quarter, and small businesses like Eos Café in St. Clair Shores and New Baltimore’s Pink House Tea Room, who do not possess the financial cushion and resources of multi-billion-dollar chains, are being squeezed even harder.

“Small businesses want to continue investing in our community, creating jobs, and serving our customers, but it’s becoming increasingly difficult to absorb rising costs while keeping prices affordable for families,” said Tony Zarife, owner of Eos Café & Coffee House. “Our service industry is struggling right now, but conversations like this are important in giving small business owners a seat at the table and an opportunity to shape policies that will help us get through this difficult economic environment.”

Recognizing the critical role small businesses play in local economies throughout the state, Sen. Hertel has been an active advocate for policies and investments that support their continued success. Last year, he was instrumental in negotiating legislation to protect servers’ tips, accelerate the increase of Michigan’s minimum wage, and secure a best-in-nation earned sick leave policy. This critical deal helped strike a balance that ensures workers have strong rights, while employers are able to run their businesses. Also, during his time in the Senate, Sen. Hertel has supported investments that help small businesses get off the ground, grow their operations, and support their hardworking employees.

Despite that progress, Sen. Hertel recognizes that there is still more to do as small businesses continue facing new and evolving economic challenges. The roundtable discussion will help inform future policy conversations and ongoing efforts to ensure Michigan remains a place where small businesses can succeed.

“For small businesses, even minor changes in supply costs or customer traffic can have a major impact,” said Jennifer Colombo, owner of the Pink House Tea Room. “And as folks struggle to just afford to keep gas in their car and food on their table, they have less to spend at local businesses like mine. That economic uncertainty has made it difficult for us to support our workers and plan for the future. We’re doing everything we can to keep serving our community, but small businesses need support, and I’m grateful we can count on leaders like Kevin to show up, listen, and fight for us.”

The small businesses who participated in the roundtable include:

Sen. Kevin Hertel sits down with local small business owners for a roundtable discussion about the issues they’re facing amid an uncertain and tumultuous economy. Photo credit: Megan Dombrowski, Michigan Senate Democrats

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