SACRAMENTO – Majority Leader Lena Gonzalez’s (D-Long Beach) Senate Bill (SB) 263, Protecting Residents, Industries, and California’s Economy (the PRICE Act), passed the Legislature today with bipartisan support as reckless tariffs imposed by the Trump Administration face an ongoing legal battle. The PRICE Act would require the Governor’s Office of Business and Economic Development to analyze the impact of tariffs on California’s economy and provide resources to support the international trade activities of small businesses.

This year, tariffs on main trading partners and essential goods imported from other nations have been announced, paused, delayed, retracted, and reinstated without regard for the impact on California workers, families, and businesses. Late last month, a federal appeals court ruled many of those tariffs illegal, a decision the Trump Administration is in the process of appealing.

These nonstrategic trade policies are not just chaotic—they carry serious consequences. 

“Tariffs are driving up costs and destabilizing our economy, and the chaotic, rapidly changing way in which they’ve been rolled out only worsens the devastating impacts on small businesses and families already struggling to get by,” said Majority Leader Lena Gonzalez. “That’s why we need the PRICE Act—to ensure we have the data and resources necessary to prepare for economic disruptions and support key industries, workers, and small businesses.”

“California is the largest gateway for goods moving between the United States and the rest of the world, and that means we experience outsized impacts from tariffs on that international trade," said Mike Jacob, President of the Pacific Merchant Shipping Association. "SB 263 will analyze these impacts and give the State a clear understanding of the tariff exposure of our economy, its businesses, large and small, manufacturers, farmers, and workers.  Because we will have to continue to manage a variable tariff environment for the foreseeable future, we thank Senator Gonzalez and her legislative colleagues for passing this important bill and implore Governor Newsom to sign it into law."

Small businesses account for more than 99% of businesses in California, and employ more than 7 million people. They are on the front lines of tariff impacts, often lacking the capital to absorb rising costs and weather economic uncertainty.

Read more from small businesses impacted by tariffs: 

"Tariffs are deeply problematic for small businesses. Unlike larger companies that may have the ability to absorb the cost of tariffs or find alternative sources of goods, small businesses typically operate on thin margins and can do almost nothing to avoid paying higher prices for critical items. What's more, constant delays in tariff implementation and shifting rates have made it almost impossible for small businesses to plan ahead. Small firms succeed when certainty prevails, and tariffs do nothing to create predictability or stability for California's entrepreneurs."

• Bianca Blomquist, California Director at Small Business Majority

"The ongoing tariff situation hurts California's small businesses the most—and we’re one of them. The sudden and unpredictable federal tariff swings have completely blown up our business operations. It has ballooned our landed costs and stalled our growth and business investments. SB 263 gives lawmakers the ability to see those shocks and how it is affecting our state's businesses - we support this bill wholeheartedly."

• Alfred Mai, Founder and CEO, ASM Games 

“When we increased our prices due to tariffs on April 19th, 2025, we were hoping costs would remain more stable after that. Unfortunately, that has not been the case. Since our last price increase, there have been additional tariffs on products from China and steel and aluminum products. Since we work with nonprofit organizations, we have already noticed a decline in total sales as they don’t have the funds to adapt to price increases. Now, more than ever, people are turning to online or do-it-yourself options, harming brick-and-mortar small businesses like ours.”

• Shawn Fitzpatrick, Owner, University Trophies & Awards, Inc.  

"The Trump Tariffs have significantly affected our business across all areas. We have stopped hiring, product innovation, and expanding our portfolio. These tariffs do not discriminate and impact all Americans, with some effects yet to come but expected to be felt in the coming months."

• Bobby Djavaheri, President, Yedi Houseware Appliances 

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Majority Leader Lena Gonzalez proudly represents one million residents in California’s 33rd Senate District, which encompasses Southeast Los Angeles, the City and Port of Long Beach, Lakewood, Signal Hill, and Catalina Island. As Senate Majority Leader and Chair of the California Latino Legislative Caucus, she is a dedicated advocate on key priorities that impact Californians from economic development and environmental justice to LGBTQ+ and women’s rights, digital equity and more. Majority Leader Lena Gonzalez has championed major policies, including broadband for all, expanding paid sick leave, advancing clean transportation incentives, and ending neighborhood oil drilling. She lives in Long Beach with her family. To learn more, visit www.sen.ca.gov/gonzalez.

The Pacific Merchant Shipping Association (PMSA) is an independent, not-for-profit association focused on global trade. PMSA operates offices in Oakland, Long Beach and Seattle, and represents owners and operators of marine terminals and U.S. and foreign vessels operating throughout the world.

Small Business Majority is a small business advocacy organization consisting of 85,000 small business owner network members.