Reuters: 'Made in America is too expensive, small businesses are trapped in tariff dilemma'
Reuters, July 2 report: Faced with high tariffs, the US startup Plufl tried to localize the production of its popular "human dog bed", but found that the cost of the US-made version soared.
The total cost of producing each bed in China is about $100, while the memory foam part alone in the US costs $150. Adding the $100 synthetic fur lining that still needs to be imported from China, the cost far exceeds expectations. Although former US President Trump imposed a 145% tariff on Chinese imports in April, forcing Plufl's founder to explore domestic manufacturing, retailer Costco rejected its US-made version priced below $500.
Finally, when Trump announced on June 11 that some Chinese goods' tariffs would be reduced to 55%, Plufl decided to maintain production in China, continuing to sell at a retail price of $299, absorbing the costs by optimizing packaging and sacrificing part of the profit. The company's sales exceeded $1 million in 2023.
A White House spokesperson, Kush Dhas, said the Trump administration is committed to revitalizing manufacturing through policies such as the "America First" Act, which allows companies to fully deduct equipment investments, "These policies will accelerate growth and drive investment throughout the supply chain."
Another startup beverage company, Moment, also faces a similar dilemma, with canning costs rising by 20% due to aluminum tariffs. When it tried to pass on the increased cost of 4 cents per can to the chain supermarket Albertsons, it was firmly rejected, so it had to bear the increased costs itself.
Original article: https://www.toutiao.com/article/1836587946795072/
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