The owners of small businesses that sell products made in China and Vietnam are delaying orders in front of the tariff walks that enter into force on Wednesday, and many fear that a prolonged commercial war expels the issue outside the business.
The Trump Administration announced on Tuesday that China’s Tax will rise to 104%, while Vietnam’s goods will be affected with a 46%service. Almost 30% of clothing sold in the United States is done in China and 25% is manufactured in Vietnam.
Day Owl, based in New York, which makes its elegant backpacks sold for $ 155 per pop in Vietnam, could go to the belly in 30 days, said owner Ian Rosenberger.
The 46% tariff would be Black Owl’s duty to $ 22 from $ 5 and would force Rosenberger to increase its price to $ 212, he told Reuters.
Rosenberger, who launched Day Owl six years ago, has stopped all future orders of its factories in Vietnam and has enough hand inventory for approximately one month.
Another New York headquarters with headquarters that manufactures men’s costumes, sweaters and outdoor jackets in China for US retailers fears that you have to close your company in a couple of months if the bad blood between and Washington persists.
He hopes to lose money in most of the millions of garments that are taking place in China now, including the black sweaters that he ordered for religious Jews in Brooklyn that is expected to arrive on April 15.
“This is the end of my family business,” said the owner, who did not want to be identified, to the post.
Unlike large manufacturers such as Nike, small businesses do not have leverage with their partners abroad to reduce their costs.
Wild Rye, which manufactures its winter jackets and other exterior garments for women in China, has just implemented a hiring freezing and cannot sacrifice its 11 employee increases, said Founder Cassie Abel to Reuters.
“This will create a lot of tension in the business,” he told The Outlet, referring to rates.
It is not just team manufacturers who are preparing for financial shocks.
A toaster and an importer of Wisconsin coffee said it faces a tariff bill of $ 100,000 within the week for the four shipments of beans worth approximately $ 800,000 that are directed to the US ports from Brazil, Columbia, Guatemala and Ethiopia.
“Anything that was sent after April 4 will be affected with a rate or 10% to 18%,” said TJ Semanchin, president of Wonderstate in Viroqua, Wis.
His company supplies coffee shops, supermarkets, including Whole Foods, and restaurants.
“I am having difficult conversations with my bank at this time because my credit line is very tight,” Semchin told the post.
He estimates that the rates will cost Wondersstate $ 300,000 this year, money that had destined for new equipment for growing business and to open a fourth coffee.
“This is a non -handful and unexpected expense,” he said.
