How Small Business Owners Are Handling Tariffs on China

Published: Thursday, May 15, 2025 at 9:19 pm

Small Businesses Still Suffer as US-China Tariff Tussle Continues

The recent easing of tariffs on Chinese goods by President Trump has offered a glimmer of hope, but the reality for many small businesses remains challenging. While Wall Street may have celebrated the reduction, the lingering 30% tariff continues to pose a significant financial burden.

The article highlights the impact of these tariffs, even after the initial, crippling 145% levy was lowered. A report from the Yale Budget Lab reveals that the average tariff rate on imports to the United States is currently at its highest level since 1934. This impacts businesses of all sizes, as evidenced by Walmart's announcement that it will be forced to increase prices on some products due to rising costs.

The 90-day pause in further tariff increases, a result of ongoing trade negotiations, offers a temporary reprieve. However, industry experts, like Steve Lamar, CEO of the American Apparel and Footwear Association, warn that the 30% tariff will still lead to price hikes, particularly during the crucial back-to-school and holiday shopping seasons. Lamar emphasizes the need for a comprehensive, long-term trade agreement, not just with China, but with all trading partners, to provide stability and allow businesses to make informed decisions about trade, investment, and sourcing. The uncertainty surrounding future tariffs continues to create instability for businesses.

BNN's Perspective: The situation underscores the complexities of trade policy. While the administration's efforts to address trade imbalances are understandable, the impact on small businesses and consumers cannot be ignored. A balanced approach that prioritizes long-term stability and predictability is crucial to avoid further economic disruption. Finding a sustainable solution that benefits both American businesses and consumers, while addressing legitimate trade concerns, is the ultimate goal.

Keywords: tariffs, China, small businesses, trade war, President Trump, import tariffs, Walmart, price increases, trade agreement, Steve Lamar, American Apparel and Footwear Association, economic impact, 90-day pause, trade negotiations, back-to-school, holiday season, Yale Budget Lab, import rates, trade policy, long-term deal

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