The tariffs of the Trump borrower are accelerating US businesses in all areas, but it is the smallest companies that are really taking it on the chin.
Small and medium -sized companies represent $ 868 billion, or approximately a third import of the United States, according to the Census Office.
While these companies are small compared to the tastes of Microsoft, Amazon or Lululemon, they still depend on Chinese manufacturing, and are much less equipped to handle punishing financial interruptions like this.
Almost one in five small to medium -sized companies are pessimistic about their chances of survival in the next five years, according to a new report of the Pymnts Intelligence Report.
Little less than 7% of all companies surveyed, and 13% of them without access to finance, believed that they were unlikely to survive in the next two years.
The bosses of some thesis companies spoke with the publication about their fears:
Small Tikes
Isaac Larian, executive director MGA Entertainment, voted for President Trump in November, but with Regio, is not so sure of making the right decision.
“Frankly, I’m angry,” the Bratz doll manufacturer, the surprise Lol and other very popular articles.
In just two weeks, the Los Angeles headquarters has paid almost $ 10 million in rates to import its merchandise to the United States from China.
That has grown the plans for the toy line for young children Little Tikes, among the few manufacturers of US toys that have a factory here, to expand a factory in Hudson, Ohio, which currently employed 700 workers.
Instead, MGA could be saying goodbye to some of those workers, Larian told the post.
“We were going to start launching at the end of this year, but we have to suspend it,” Larian said.
Meanwhile, the Bratz dolls that cost $ 15 at this time will probably cost up to $ 30 in time for Christmas. At that rate, the company will lose up to 40% of its sales and 40% of its profits this year, Larian said.
The toys industry has been pressing for an exemption to the 145% rate of the goods carried out in China and sees the dissemination of technological companies over the weekend as unfair, he added.
“Large companies like Apple have money and influence to obtain Mr. Trump’s ear,” Larian said.
Wonderful coffee
Before the Wariff Wars, wonderful coffee was on the way to grow 15% this year. The Java distributor was also preparing to invest $ 300,000 in new packaging equipment and open its fourth coffee, in Madison, Wis.
Now, the company, which supplies supermarkets and restaurants throughout the west, spoke to expand a line of credit so that it can pay additional $ 20,000 in rates on a shipment of beans of choice that come from ethiopia.
“We are afraid that we are in a cash crunch,” the wonderful TJ Semchin touched the post. “It begins to question if it is time to invest in growth.”
While Semanchin does not plan to fire employees, he said he may have to reduce a program of participation in employee profits.
The 90 -day pause in reciprocal rates last week did not forgive the importer, who is still stuck paying an additional 10% for everything that brings coffee producers abroad.
“A 10% increase in all our costs remains a massive disturbance for us,” said Semchin. “These changes of tens of thousands of dollars day by day make us less hopeful. They are sinking on how our real costs will reach.”
In addition to the $ 20,000 in rates, Wonderstate will have to pay approximately $ 4000 in interest to borrow money for homework, said Semchin.
LONT
Tarpent Inc. -a company based in Nevada City, California, which manufactures light tents and other outdoor and camping reports in three manufacturing facilities. One is in Hong Kong, another is in Vietnam and a third is in Continental China.
“As of today, due to rates, we have had to suspend all operations” in the Hong Kong factory, said Tarpent president Harry Shirs, The Post. “I don’t know where we are going.”
With the recent increase in the rate of rates to 37.5% from 7.5%, Shirs said that the company recently had to pay more than $ 51000 in taxes, compared to around $ 10,000 that would have previously paid.
The company generates around $ 2.5 million per year, he added. If there are no changes in the front of the rate, that number will fall to less than $ 1 million, Shires said.
Shirs told The Post that the company currently has enough inventory to sell during the summer, but “we won enough stock to stay open” in autumn if the tariffs remain in place.
At that time, Tarpent “will close or redefine severely what we support in the industry,” said Shirs.
Vikre Distilling
Vikre Distilling is waiting to receive a response from suppliers that supply everything, from corks, labels and bottles.
The Duluth distillator, Minnesota, has been doing vodka, gin and whiskey during the last decade and has struggled to increase prices that increase the height of inflation in recent years.
“We saw a great fall in sales,” said owner Emily Vikre, noting that the bar, the restaurant and retail customs have drastically reduced orders.
“From the beginning of this year, we have seen a setback because consumers are more conservative about their expenses,” Vikre told the post. “But now our retail customs have stopped ordering. They are worried about being trapped with a lot of inventory.”
Vikre is preparing for sellers to raise prices again due to rates. Its label manufacturer, for example, is based on imports from China so that their labels adhere to glass bottles.
If the price walks are unmanageable, Vikre is consulting part of the warehouse and retail space to its lessor.
Outhitters
Sarah McDonald, co -owner or clothing clothing store in Wayne, Pennsylvania, told The Post that you are worried that you may need to say goodbye to some of the 15 people you use.
“Honestly, when tariffs were announced, I felt that basically all small businesses in the United States were tolera, probably had to get out of the business,” McDonald said.
He added that tariffs will probably mean higher prices, which will be transmitted to the consumer.
In addition to uncertainty, tariffs will be implemented, what rate and when, he said.
“It was so extreme how high the rates were,” McDonald said, adding: “Things have changed, the numbers are changing, the dates are changing.”
Kamhi world
“I understand the justification behind the rates. There has been an imbalance,” said Jay Kamhi, founder of Kamhi World, based in Clearwater, based in Florida, who sells Mr. predictor Fortune Count Toy.
The Amazon seller, who exclusively imports all personalized toys of an installation in China, has temporarily stopped all manufacturing abroad. This is because the tariffs could be the cost of their delivery and vacation delivery, updated by approximately $ 1 million, up to $ 1.5 million.
“If we have to pay $ 1.5 million in penalties or rates. We do not get profits. We lose money. It is not sustainable for any stretch of the imagination, and we have nowhere to go,” Kamhi told The Post.
The company is investigating a change of production to Vietnam or Mexico, but “you get large and exensive molds that are sitting in China, and you have to find a way to transport them. You must find a factory that many factories, for Vietnam, have space for you.”
Kamhi said that he has examined us manufacturing in the past and that he would love to do it, but specialized molds and electronic products that enter their toys are only avoidable abroad. Even if there were capacity in the US facilities, it would cost approximately 10 times more, he said.
The layoffs are not an option for Kamhi. The Marketing Chief in Kamhi World is committed to Kamhi’s daughter; His operations employee is married to his other daughter. The company’s executive director, whose father is a good friend of Kamhi, has been with Kamhi World for 15 years.
“Each of these people, their families defend themselves from this company,” Kamhi told The Post. “Literally overnight, all these people are now terrified that they have not had money to keep their families. My daughter calls me two weeks ago, going,” Dad, how are we going to get this? “
