American companies of all sizes are ready for President Donald Trump's tariff, but it can be said that they are small businesses more exposed.
Many smaller companies say they have to raise prices, freeze expansion plans, or absorb high profit margins with high import bills. Such companies employ half of the American workforce, so how do you deal with the trade war in Trump, it will be decisive to the wider economic impact.
In Florida, Jay Foreman felt already a bite. He is the CEO of Basic Fun Inc! It designs and games markets such as Care Bears and Tonka-and its imports from China were rescued from the first-term Trump tariff, which focused on materials and machines more than consumer goods.
But not this time. Foreman says its prices with sellers and customers were already detained during the third quarter when the new China tax fell by 10 % this month. The Trump administration has also announced a 25 % tariff on steel and aluminum. Currently, he has no choice but to absorb costs, which can wipe nearly a third of this year's profit margin.
After that, if there is no American deal to remove the definitions, its options include pressure on suppliers to charge less, accept smaller profits, and raise the prices of games in time to spend holidays.
The New China tariff is the only one in books so far in the second period of Trump – but with the presence of many scheduled in the coming weeks, the gates are about to open. Trump says this protectionist policy will revive the American industry. Many analysts are concerned that it will revive inflation instead, and withdraw the American economy that grows strongly.
“We all all have to deal with and maintain our heads and we hope everything will succeed,” said Foreman. Adding that Trump won the elections, promising to drop the prices, and his management must think if the definitions have an opposite impact.
“Very clear”
This is one of the anonymous adults about Trump's commercial plans, especially after consumer prices in the United States began a year with an unexpected jump. Federal Reserve Chairman Jerome Powell admits that the definitions can change the image of inflation, although he marked an accurate line when asked how it might affect the interest rate decisions.
Many small companies do not have the option to absorb the costs of customs tariffs: they should only raise prices. This is the case in Field Fastener, according to CEO Jim Derry. The company, based in Rockford, Illinois, bolts, bolts and other components – that are largely obtained from China and Taiwan – which are used for all types of things, from football helmets to elevators. “Our customers' products in your daily life,” says Diri.
These customers themselves now on notice that prices are heading. “We have explained this abundant,” says Diri. “If the definitions are increased or added, we cannot absorb them.”
The exceeding cost is not always simple. What if buyers are connected at a higher price? This is less than headaches for the largest companies, as they are tilted by dominant players in their markets to get what economists call pricing power – the ability to make long -distance walking without losing customers.
It does not work in this way for Pervaiz Lodhie, California -based Ledtronics, which designs and builds lighting products. It is used in aircraft and hospitals, and the components come from all over the world, including China.
Ludhi says that many of his customers have been with the company for decades, but this does not mean that they will pay everything he asks. “I have a 40 -year -old agent who will not allow me to increase my prices. I told them that this is the best I can do.” “I may lose the customer.”
“We are paralyzed”
Along with inflation, another tariff question is how business investment will be affected. Anxiety is that companies will be reluctant to build factories in America and add jobs – the final purpose of Trump's commercial policy – so that they have a clearer idea about the amount they have to pay to import machines, parts or materials.
This is an issue for corporate giants – General Motors will not spend “a large amount of capital without clarity,” said CEO Mary Barra – and at the other end of the scale, Adams would like Sanitube as well.
The family owned by the family -owned family is making pipes of stainless steel, valves and equipment for food manufacturers. It makes materials from a group of countries, and is employed about 20 people. Adams says that Sanitube has made plans to expand waiting, because there is no news about the increase in its bills as a result of the tariffs – and it needs to keep the money only in a state.
It is already on a 10 % hook for China's duty, and it may be exposed to a separate tariff that is scheduled to enter into force in early March, on Canadian minerals and goods. He says, “We felt paralyzed as a company.” “So we have an idea of ​​what it holds tomorrow, next month, or this year, we are only in a detention style.”
Adams says that Sanitube fell with an unexpected introductory bill with a few hundred dollars in Trump's first trade war, because he had a great matter from China already purchased and shipped when imposing a tariff of steel and aluminum. The administration rejected the exclusion or payment requests.
At that time, since the definitions are focused on China, many importers sought to avoid by buying elsewhere. Vietnam and Mexico, which witnessed exports to the American boom, were among the beneficiaries.
This time, Trump throws a wider tariff network – the target is not the supply chains of “sponsoring friends” in sympathetic countries, but it enhances production in the United States itself – so repetition of the trick may be more difficult.
“You are stuck”
However, it is an option that Darren Klein sees. He is the chief operational operational at Poly Craft Industries in New York, making packaging materials like bags and bags for well -known brands for consumers. It is produced in the United States using China's exported materials among other things.
“10 % is sufficient to lead to change in behavior,” Klein says about the high identification tariff for this month. It is likely to push us to choose a different source. We don't really want to increase prices if we can avoid it. “
Claire Reed, the chief adviser to Arnold and Porter, a former US Trade Representative for China and Empire in the field of trade enforcement in Arnold and Porter, and a former US Trade Representative for China and Chief Chinese Trade Enforcement Advisers, says it is generally difficult for small companies to control their supply chains for the sake Avoid customs tariffs.
“You are a young man – you don't have the capital to go to a completely different country and try to start again,” said Reed. “You are stuck.”
Another thing that young men lack is the power of pressure. After Trump launched the trade war during his first term, “a confusing arrival” of companies managed to win the relief of the customs tariff, according to the Brookings Institute. The result was “heavy costs on small and medium enterprises that were not equipped to jump across bureaucratic and political collars.”
“My offer”
With the growth of the trade threat during the end of last year, American companies and consumers did their ability to advance. An increase in imports, and in sales of large ticket elements such as cars and home appliances, indicates an attempt at the country level to overcome the Trump tariff.
This was not possible for every small company – Furman, the Florida playmaker, said that he would not succeed in making it because the children's whims change very quickly – but Margo Clayon was able to pull it.
She sells her business – INKOM -based in INKOM – groups of people looking to grow small vegetables inside. Cleeson says she has stored materials from China in recent months, expecting that the next stage of the trade war might harm her. She requested 30,000 hard plastic trays, and got it before the new Trump tariff was gone by 10 %. Save about $ 1,200.
“I thought this is my year supply and we hope that things will calm down,” she says. If they don't do it, Clayton sees a threat to her work because it is likely to raise prices. She says she explored the sources of trays locally, but she concluded that she would be very expensive.
“This is what it is.”
Of course, the Trump agenda is not related to tariffs, even if it looks like this in some days. There is a lot on his platform – such as his promises to reduce taxes, the cheapest energy and purify the bureaucratic red tape – which got a small commercial interested.
After Trump's victory in the November elections, the small optimism index jumped to the highest level in more than six years. But it fell slightly last month, when the survey itself also showed a sharp decrease in capital spending plans since 1995.
In the furniture industry, which depends on housing sales of a large part of business, the largest obstacle at the present time is about 7 % mortgage rates. This was made in 2024 difficult years for companies such as the Expressor Kevin Charles Fine, which is mostly produced in the Tobello region, Mississippi-a historical area for making furniture-and supplies the city furniture chain. She had about five employees through retirement and attrition.
Adding a 10 % tariff to the current fang in the industry will not help. A small share of cutting and sewing is made for the company's low pieces in China, and so it is subject to new definitions for this month.
“Will some of our products rise?
“This is what it is,” he is saved. “We have to manage our work accordingly.”
