[Source/Observer Network Qi Qian] Apple, Nvidia, Microsoft and other large American companies and the American technology industry can breathe a sigh of relief. After multiple reversals in tariff policies, the Trump administration quietly granted exemptions for products such as mobile phones, computers, and hard drives on the evening of April 11 local time.

Now, small American businesses urgently want to know when and whether they will receive exemptions, and if they can survive until then?

On the 12th, CNBC, CNN, Reuters and other foreign media reported that for most small business owners in the United States, Trump's high tariffs on China will soon cause "irreversible" damage. American furniture, toys, clothing, sports equipment and other consumer goods are highly dependent on imports from China.

Several industry executives said that now, the U.S. supply chain is being disrupted more than ever since the pandemic, which goes beyond what small businesses can bear. At the same time, data analysts pointed out that despite this, "no company" wants to move production from China to the U.S.

"This is not a risk that small businesses can afford."

In recent days, small businesses across all industries in the U.S. have been at their wits' end.

A toy store manager receives price increase notifications every day; a lip balm manufacturer predicts its product costs will rise by $5 million; a concert venue manager finds that the cost of installing new seats in the auditorium has suddenly increased by $140,000...

On the 12th, over a dozen business owners and managers told Reuters about the impact of Trump's tariff system. While expressing dissatisfaction and anger towards the tariff policy, they reminded consumers that import taxes are paid by American companies and are often passed on to consumers.

An American theater found that the cost of installing new chairs has risen significantly Reuters

CNN noted that for American families, toys may become luxury items. Data shows that nearly 80% of all toys sold in the U.S. are made in China. MGA, one of the largest toy companies in the U.S., based in California, CEO Isaac Larian said: "We have no choice but to raise prices significantly. My 46-year-old business is now in jeopardy."

At the same time, several senior executives from supply chain companies also told CNBC that due to Trump's erratic tariff policies, a large number of American companies from various industries have completely stopped container exports, which will severely impact the U.S. economy.

Allan Murphy, founder and CEO of Danish maritime data analytics company Sea-Intelligence, said: "Orders from U.S. importers of Chinese furniture producers have completely stopped, and the same situation has occurred in the toy, clothing, footwear, and sports equipment industries." Alan Bell, CEO of U.S. logistics company OL USA, said: "Almost all businesses related to China are currently suspended."

Erica York, senior executive of the Tax Foundation and economist, told CNBC that Trump's high tariffs on China will lead to the cessation of most trade between China and the U.S. This will particularly affect small American businesses, as most products have no substitutes.

"This is not a risk or burden that small businesses can bear."

Stephen Lamar, CEO of the American Apparel & Footwear Association, stated that sudden policy changes and high tariffs are causing unprecedented disruptions to the supply chain since the pandemic. Lamar called for Trump to change the tariff policy before it causes "irreversible" harm to small businesses.

Trump spoke at the White House on the 12th Video screenshot

"No company wants to move production from China to the U.S."

Emily Lay runs a company in Florida that specializes in providing high-end office planning services for women.

According to Lay, since Trump announced tariffs on Chinese goods in his first term in 2017, she has paid more than $1 million in trade taxes to the U.S. government. She predicts that at the current rate of tariffs imposed by Trump on China, she will pay nearly $1 million in taxes within the next 12 months. She said she plans to sue the Trump administration's tariff policy as unconstitutional.

Lay said that for many years she has tried to produce her own products in the U.S., but she simply cannot find a profitable way to do so. "This could put us in a difficult position, even bankrupt us. We are at our wits' end right now and don't know what to do."

Isaac Larian, CEO of MGA, said that most of the company's production is still in China, but a few years ago, a factory was established in Ohio to produce some products.

He helplessly stated that this American factory can produce more toys, but Americans "don't want to work in factories." Moreover, he finds it difficult to procure raw materials for toy production in the U.S. "There are no factories in the U.S. that can make hair for dolls. What am I supposed to do? Sell bald dolls?"

Toys produced by MGA company, mostly made in China CNN

Allan Murphy, CEO of Sea-Intelligence, said that among all Chinese manufacturers his company has contacted, none are actively seeking to relocate production to the U.S. He said one reason is that they don't understand the ultimate goal of the Trump administration.

"The biggest concern here is how the Trump administration will ultimately play out, completely uncertain," Murphy said. "If tariffs are just a negotiation tactic, no one will consider making a large-scale investment in U.S. manufacturing. If the government really pursues the goal of re-industrializing America, then long-term tariff plans must be clear. This strategy of adjusting tariff rates daily only creates uncertainty."

Alex Yaks, special assistant for economic development and industrial strategy during the Biden administration, recently stated: "If you are a small business, you will suffer a painful blow. You will see GDP being dragged down, labor markets faltering. You will also see inflationary pressures." Yaks frankly stated that Trump's tariff policy "lacks rational thought or direction."

Trump's insistence on imposing additional tariffs on China has already caused panic and discontent nationwide. Media outlets like The New York Times previously cited reports indicating that the decline in the U.S. inflation rate in March exceeded expectations. CNN also warned: "Real pain is coming for Americans."

American small businesses expect to face more shocks. In a letter to clients, global logistics giant Maersk recently warned that high fees imposed by the Trump administration on Chinese ships may take effect next week, leading to "massive restructuring of all North American liner services." The letter reads: "Resolving this issue will take months, and congestion and surging freight rates will occur in the coming months."

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Original source: https://www.toutiao.com/article/7492603700540736019/

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