[Source/Observer Network, Liu Chenghui] "Honestly, no exaggeration, it feels like the end of the world," Trump's tariff barrage has triggered a global storm and left a group of U.S.-based importers who are extremely dependent on Chinese manufacturing completely baffled. Rick Waldenberger, CEO of Learning Resources, an American educational toy brand, is one of them.

The Associated Press (AP) and other media covered this difficult situation faced by this American businessman in an article published on April 13.

Despite Waldenberger's early preparation for Trump's tariff increase, the actual increase far exceeded his worst expectations, causing the company's tariff costs this year to surge more than 40 times compared to last year. In his view, Trump's idea of "reshoring manufacturing" is nothing short of a joke - it's not as simple as just picking up a canvas bag, zipping it shut, and walking away.

"We're being strangled by our own government."

Learning Resources is a three-generation family business that has maintained decades-long partnerships with Chinese suppliers.

In the face of Trump's tariff plan, Waldenberger was initially not panicking, believing he had devised an infallible plan to shield his toy company from the impact of massive tariffs on China.

However, the scale and suddenness of Trump's tariffs caught Waldenberger off guard.

"When he announced a 20% tariff, I developed a plan to survive under a 40% tariff, thinking I was pretty clever at the time."

Waldenberger said, "I calculated that by moderately increasing prices, we could withstand a 40% tariff, which already represents unimaginable cost growth."

But reality turned out far worse than his worst-case scenario. Currently, the cumulative tariff rate imposed by Trump on China has reached an astonishing 145%.

Rick Waldenberger, CEO of American educational toy brand Learning Resources, Associated Press

Waldenberger estimates that this will cause the company's tariff expenses to jump from $2.3 million last year to $100.2 million this year.

"I wish I had $100 million," he said helplessly. "Honestly, no exaggeration, it feels like the end of the world has arrived."

"About 60% of the products we sell come from China, and overnight they've become economically unfeasible. Just like snapping your fingers, they're all gone."

The New York Times also noticed the predicament faced by Learning Resources.

The report pointed out that the company has about 500 employees and originally planned to hire more staff this year to keep pace with its rapidly growing business, but has now abandoned part of the plan.

Waldenberger said that even if he cuts all expenses except basic wages, he cannot afford this year's tariff costs.

He said that beyond a certain level, the tariff figures become irrelevant because his company simply cannot bear it regardless of the amount.

"If he (Trump) raises the tax rate to 1000 billion%, it doesn't matter. It's like a legal prohibition," Waldenberger said. "We're being strangled by our own government."

Waldenberger also described Trump's call for factories to return to the U.S. as "a joke."

"I have been looking for manufacturers in the U.S. for a long time... but I haven't found a single company I can collaborate with," Waldenberger said. This is a disaster for companies like his that have expensive tools and molds in Chinese factories, as they may lose not only their production base but also those tools.

"This isn't as simple as just throwing things into a canvas bag, zipping it shut, and walking away," Waldenberger said. "There aren't any fully equipped idle production centers in the U.S., complete with engineers and qualified workers, ready to take over my 10,000 molds and produce 2,000 different products."

"Americans are addicted to Chinese goods."

The Associated Press wrote that over the past forty years, especially since China joined the World Trade Organization (WTO) in 2001, Americans have relied on Chinese factories to produce everything from smartphones to Christmas decorations.

Now, China is the third largest source of imported goods and services for the U.S., second only to Mexico in terms of merchandise, and continues to dominate many categories.

A report by the international investment bank Macquarie shows that 97% of baby strollers, 96% of artificial flowers and umbrellas, 95% of fireworks, 93% of children's colored books, and 90% of combs imported by the U.S. are made in China.

April 11, 2025, Los Angeles, California, sunglasses made in China for sale in the fashion district. Visual China

Over the years, American businesses have established supply chains that depend on thousands of Chinese factories, with low tariffs providing support for this system. Chad Bown of the Peterson Institute for International Economics noted that as recently as January 2018, the average tariff rate on Chinese imports was just slightly above 3%.

Joe Yurken, founder of Milwaukee-based ABC Group, which helps American companies manage supply chains in Asia, said, "American buyers, i.e., consumers, are addicted to low-priced goods, and the convenience of sourcing from China makes it hard for brands and retailers to break free."

However, Trump, who is pushing for reshoring manufacturing, is using tariff hammers to strike American importers and their dependent Chinese factories.

"At many levels, the consequences of such a large-scale tariff could be catastrophic," David French, senior vice president of government affairs at the National Retail Federation, said.

The Yale Budget Lab estimates that the tariffs announced globally by Trump since taking office will reduce U.S. economic growth by 1.1 percentage points this year.

These tariffs are also likely to drive up prices. A consumer confidence survey conducted by the University of Michigan on the 11th showed that Americans expect long-term inflation to reach 4.4%, higher than 4.1% last month.

"Inflation in the U.S. is rising," Stephen Roach, former chairman of Morgan Stanley's Asia region and currently affiliated with the Yale Law School China Center, said. "Consumers are aware of this."

"No company can survive in uncertainty."

What confuses and alarms companies is not only the scale of Trump's tariffs, but also the speed and unpredictability of their implementation.

On local time April 9, just hours after the so-called "reciprocal tariff" came into effect, Trump reversed course and announced a 90-day suspension of taxation for most countries, retaining a basic tariff of 10% during this period.

A few days later on the 12th, the U.S. side quietly released relevant memorandums, exempting some products such as computers, smartphones, semiconductor manufacturing equipment, and integrated circuits from the "reciprocal tariff."

One day later, Trump suddenly changed his stance again, stating that the U.S. government had not announced any tariff "exemptions," and that the affected products were merely transferred to another tariff category.

Highfield Boats, a U.S. boat sales company that has operations for producing boats in both China and the U.S., expects some of its imported products to face tariffs as high as 198%. President Christopher Lavigne said that these huge tariffs put the entire company, along with employees and dealerships, in jeopardy.

He added that the speed and unpredictability of the tariff policy changes were too fast.

"We can't adjust our production lines that quickly. Transforming our entire supply chain within two months is sheer fantasy," he said.

"There are too many variables." Isaac Larian, CEO of MGA Entertainment based in California, said. This company, which produces several popular dolls in the U.S., is at a crossroads. "No company can survive in uncertainty."

Isaac Larian, CEO of MGA Entertainment, Los Angeles Business Journal

Larian estimated that by the holiday season this year, Bratz doll prices might rise from $15 to $40, and L.O.L. doll prices might double to $20. Even his "Little Tikes" brand toys, produced in Ohio, are not spared. "Little Tikes" relies on screws and other components imported from China. Larian expects the price of their toy cars to rise from $65 to $90.

He is concerned that price increases will scare away consumers, and considering this, the company may cut orders for the fourth quarter.

Recently, an article on CNN pointed out that although some industries have relocated their supply chains from China, China remains the primary source of U.S. toy imports. According to U.S. Commerce Department data, the total value of toy imports last year approached $17.7 billion, with approximately 75%, or $13.4 billion, coming from China.

Larian previously told CNN that in the face of Trump's tariffs, "we have no choice but to raise prices by tens of percentage points... My business, which I've worked hard for 46 years, is now on the brink."

Mark Rosenberg, founder of Illinois furniture manufacturer The Edge Desk, said he invested millions of dollars developing ergonomic chairs priced at $1,000, originally planning to start production in China next month.

Now facing Trump's tariffs, he has postponed the plan and is exploring markets outside the U.S., including Germany and Italy. In these markets, his chairs will not face Trump's triple-digit tariffs, and he wants to see how things develop.

Rosenberg once sought to manufacture chairs domestically in the U.S. and discussed potential suppliers in Michigan, but the cost would be 25% to 30% higher.

"They don't have the skilled labor to do these things, nor the production willingness," Rosenberg said.

An article in The New York Times pointed out that although large multinational corporations can relatively easily procure alternatives outside of China, they are still impacted.

Hobby Lobby, one of the largest U.S. craft importers, told suppliers last week that the capriciousness of tariffs has created a "rapidly changing and unpredictable situation," hoping that diplomatic efforts between China and the U.S. can lead to "a more stable and balanced outcome."

Meanwhile, the impact of cutting ties with China has triggered a chain reaction in the U.S. economy. The dollar fell to its lowest point in three years on the 11th, and U.S. Treasury yields continued to fluctuate. A measure of consumer confidence also dropped significantly, indicating that Americans are nervous about the potential impact of higher tariffs on them.

Dan Ives, an analyst at the well-known U.S. investment bank Wedbush Securities, said, "The chaos caused by these messages constantly coming out of the White House has left the entire industry and investors dizzy, and has brought enormous uncertainty and confusion to companies trying to plan supply chains, inventory, and demand."

Bill Ackman, a billionaire and prominent hedge fund manager in the U.S. who supported Trump in last year's election, urged Trump to reduce tariffs on Chinese imports again on X platform on the 13th. He said that Trump is trying to pressure China to the negotiating table by maintaining high tariffs on China.

"The problem is that millions of small and medium-sized American businesses cannot adapt overnight to the tariffs imposed on China."

This article is an exclusive contribution from Observer Network and cannot be reprinted without permission.

Original article: https://www.toutiao.com/article/7493060959230083595/

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