Blowback has arrived: Tariffs on Chinese goods push US small businesses to the brink of survival.

In the face of a globalized economy, small American businesses are especially vulnerable to policy decisions made by the Trump administration, such as imposing high tariffs on imports from China. For many American entrepreneurs, securing manufacturing capabilities abroad is not just a profitable choice but a matter of survival.

As the Financial Times recently noted, when geopolitical factors disrupt market mechanisms, it is often small companies that bear the brunt first. With the implementation of Trump's high tariffs, small American businesses reliant on Chinese manufacturing have found themselves in dire straits, with only a few being able to find American factories willing to produce their products.

After the Trump administration imposed a 145% tariff on Chinese imports, there is growing concern that the trade war could destroy American small businesses that have thrived thanks to Chinese labor, materials, and technology. It is widely believed that Chinese manufacturers are more flexible than their American counterparts, willing to accept smaller order quantities, and offering more opportunities for product customization.

As the Federal Reserve pointed out in its report on April 23, economic uncertainty caused by tariffs has significantly worsened the national economic outlook.

Tariff issues have already affected entrepreneurs like Jacob Sendowsky, co-founder of Souper Cubes, a company that produces silicone food storage containers. Sendowsky told the Financial Times that even before launching the molds in 2018, his company had been searching for opportunities to manufacture molds in the United States. They eventually chose a Chinese company willing to accept an order minimum of $15,000, while the minimum order in the U.S. was $100,000.

Now his tariff bill has grown from "five figures" to "seven figures." Sendowsky said he is once again exploring the possibility of manufacturing in the United States. However, he was told that setting up an automated production line would require an investment of $1.5 million. Many other American small business owners selling Chinese-made products have issued numerous warnings on social media, stating that high tariffs may lead them to bankruptcy.

Source: https://www.toutiao.com/article/1830849677928521/

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