When the tariffs were announced, a lot of small businesses panicked because any hike in importation prices would seriously impact whether or not they could do business. With a small business, your profit margins are obviously slimmer than a larger business already and having to pay a huge tariff to import goods might not be doable, especially since most products that are sold in America are manufactured in China anyway.
With tariffs on China, not only will businesses that sell pre-made products like enamel pins be affected, but businesses that design and sell unique things will suffer as well. Some products that can only be made in China include Pashion Footwear, a shoe company that sells shoes with interchangeable heels so the buyer can make a flat, kitten heel, or stiletto out of the same shoe. This company’s CEO took to social media to explain why her company would be completely squashed by the tariff, as the only way she can produce her product is by importing them from China, as the only machine that can make such a product exists in China. While she and many other small businesses are planning on pivoting, Trump’s temporary suspension of said tariff doesn’t provide much room to breathe.
This short time to prepare is barely a break for businesses with low discretionary income who can’t pivot at the drop of a hat. Some need to purchase more products before the tariffs go into effect while some are buying their own manufacturing machinery, which, by the way, is also showing a sharp growth in prices in preparation for the tariffs. At the end of the day, these businesses have to quickly and strongly prepare for tariffs without any assurance that they’re even going to happen, putting a strain on businesses that are already struggling to thrive.
