Trump’s tariff that weighs small business owners

Small business owners are concerned about their chances of staying under the leadership of the president Donald Trump The customs tariff plan, which sparked the beginning of a possible trade war and flipped trillion from the stock market.

Although the president stopped for 90 days, it increased the customs tariffs against imports from China to 125 %, raising the total American fees against Beijing to 145 %, as the emergency tariff in Fintanel continued earlier this year.

Sarah Wales, whose small work began in 2013 to create functional bags for mothers and imports from China, is one of them. After more than a decade of work, she stopped innovation, raised prices, and is now only rearranging a small part of the products she had previously done, as the definitions continued in her business.

So far, Wales said she had absorbed the highest costs because her customer base is new parents, but she has reached a “unbearable” point.

Alfred May, founder of San Francisco headquarters Card games company ASM Games said that the high costs of work, materials and loyalty in recent years have been eating the margins of his companies because he did not want to transfer the costs to consumers.

“It is amazing and almost impossible to keep up with,” he told Fox Business: “This is very devastating for my work.”

China increases customs duties on US imports to 125 % of 84 % amid a continuous trade war

Since small companies have smaller profit margins, they are more at risk and will be “the first to act under any sign of stagnation,” according to Pinar Sibi Wilber, chief economist in the US Council to form capital.

“As its size indicates, they do not have the same strength as the market as their larger counterparts, so the higher their costs, it is difficult for them to wipe with their suppliers. In the end, they will have to transfer this cost to their customers,” Wilber told Fox Business: “This reduces their competitiveness for major companies.”

Trump implemented a 10 % base tariff on all imports last week and threatened additional mutual definitions on American commercial partners, some of which amounted to more than 100 %.

The administration said that the definitions are part of “fair trade policies that will restore our workforce, rebuild our economy, and finally put America first.”

My recently announced definitions, including his constant threats to American commercial partners, are the most “brutal tax lift on America Small companies The consumers “have ever suffered.

“At least with regular taxes, you can notify – you can plan. This has not come out of anywhere, and small companies like me, with narrow margins and tight cash flow, will be crushed,” he said.

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Wales, who manufactures and imports all her products from China, is also a direct goal. Despite years of research, Wales said she could not find any US -based factories capable of producing their products on a large scale.

“I have no loyalty at all to manufacture in China,” Wales said. “

Even if manufacturing to the United States, Wales said she will still need to import materials from 14 other foreign manufacturers to produce one backpack design.

According to Wilber, most small companies “operate under the stock in time”, which means that they get material when they need production.

Wilber said: “These types of definitions not only make their costs rise, but also make it difficult to plan and maintain a reliable supply chain, especially when they depend on foreign producers,” Wilber said. “Once again, they can manage this small profit margin because many of them depend on the cheapest foreign supplies. When you remove this feature through the customs tariff, this will be a big problem for its validity.”

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Wilber said that for a small company that works with many suppliers, each of them is defined by definitions, there will be an increase in costs at each stage, which makes it impossible for the company to “absorb all this cost without entering red.”

Wales had to significantly reduce her stock. Of the 115 elements you carry, it only rearranges about 10 of its basic products. At the same time, May seeks The outward capital Only to pay the stock of inventory that is about to reach in the next few months.

“This is money that I must use to invest in business – building new products, renting, growing. Instead, I must keep everything linked to payment of customs tariff payments,” May said.

“In this environment, no one knows what will happen day by day.”