Early April saw Trump administration impose 145% tariffs on Chinese imports leading to crisis conditions for American businesses depending on these goods. Due to canceled orders stranded shipments and elevated costs business owners worry about financial collapse until President Trump suggests possible reductions in tariffs which brought about a stock market gain.
WS Game Co. faces a total collapse because it operates as a Massachusetts-based family business that licenses Monopoly games from Hasbro. Jonathan Silva reported that three shipping containers carrying $500,000 worth of games remained stuck in China while his company lost $16 million worth of retail orders. All Chinese production facilities face a 25-year threat to their established growth. According to Silva the company remains on the brink of bankruptcy while it faces a four-month deadline. His company operates with 22 employees but lacks the ability to rapidly move its manufacturing operations to different locations.
House the Lexington Kentucky-based home-décor shop operated by Jeremy Rice specializes in artificial flowers but currently depends on Chinese suppliers for 90% of its products. Suppliers raise their prices by 20-25% for big products but smaller suppliers could face even higher price increases. Alternative high-quality silk flowers are not expected to be available for years because China leads the market. The initial holiday business will help Rice sustain his regular stock for a short period of two to three months. Rice expressed his concern that the store would have to shut down like numerous mom-and-pop businesses did in previous economic downturns.
TeaHaus owner Lisa McDonald faces growing concern because Chinese and international tea imports have become more expensive due to tariffs. McDonald believes that U.S. tea consumers will refuse to spend $75 on a 50-gram bag that now costs $33 instead of its previous price. She dismissed Trump’s manufacturing argument about her tea industry because the United States lacks the capability to produce tea in commercial quantities.
4Knines owner Jim Umlauf operates from Oklahoma City and his company produces pet-friendly car accessories which depend on Chinese raw materials. Since the implementation of 25% tariffs in 2018 Umlauf has tried to find alternative suppliers but ongoing high costs continue to limit his business expansion. The fresh trade barriers make it impossible for the company to import products while its inventory supply continues to decrease. The White House has ignored all small business requests for help made by Umlauf. The maker of policy needs to understand how tariffs actually affect small businesses beyond market indicators.
The stories show the intense desperation of small businesses which are caught between the trade war conflict while facing no visible escape from extinction because of the tariff threats.
