When tariffs on Chinese imports dramatically decreased from 145% to 30%, board game publisher Connor Alexander seized the opportunity to launch a new game. However, he faces uncertainty as the clock ticks down on a temporary trade agreement. With the potential for tariffs to revert to their previous levels, Alexander's situation exemplifies the precarious balance small business owners must navigate in today's economic landscape.
The recent trade agreement between the US and China has reduced tariffs on Chinese goods to 30% for a limited duration of 90 days. While this reduction has brought a fleeting sense of relief, uncertainty looms over the future. Alexander, a 54-year-old board game publisher based in Seattle, expressed his concerns, stating, “If that pause goes back to 145%, if it gets turned off, I'm out of business.” This sentiment resonates with many small business owners who feel the pressure of impending deadlines.
Business Insider interviewed several small business owners regarding the implications of the new trade deal. While they welcomed the tariff reduction, they expressed frustration over the short time frame, which has left them feeling like they are playing a guessing game. The uncertainty surrounding the future tariffs leaves little room for confident planning.
Connor Alexander paused production on two projects for his company, Coyote and Crow Games, when tariffs were at their peak. With the recent reduction, he greenlit both games, but uncertainty still looms regarding shipping and unexpected costs. “Under the fastest circumstances, 90 days may not be long enough,” he noted, highlighting the potential delays that could arise during transportation.
Haley Pavone, the founder and CEO of Pashion Footwear, shared her mixed feelings about the trade deal. As her shoes take four months to produce, the 90-day reprieve is insufficient for any meaningful changes. She has yet to place her holiday orders and lacks clarity on the taxes she will incur. “It’s anyone’s guess,” she remarked, emphasizing the ongoing uncertainty.
Similarly, Hugo Ramirez, who operates Frio Mexican Treats in Wisconsin, faced challenges when tariffs soared to 145%. He shifted to sourcing materials from US manufacturers but found them to be more expensive and less customizable. This shift has made him hesitant to plan for future expansions.
Jessica Kim, owner of Mycha LA and Chicago, noted that the 90-day window allowed for brief shipments but did not facilitate long-term planning. She faced delays with her orders and had to pause while tariffs were high. With the new agreement, she has resumed her orders, but the uncertainty of future costs makes it difficult to strategize.
Alexander anticipates a price increase of $10 to $20 on his games if tariffs remain at 30%. He admitted to his customers that he cannot predict future prices. “I’m taking a chance. I’m gambling on my business,” he stated, highlighting the risk small businesses face in this volatile environment.
Small business owners are finding it increasingly challenging to navigate the evolving landscape of tariffs. Pavone, who has been impacted by the closure of the de minimis loophole, raised her prices and attached a tariff tax to US orders. Despite these adjustments, the ongoing uncertainty continues to hinder her ability to plan for the future.
Both Pavone and Ramirez have had to pause their expansion plans due to the unpredictable nature of tariffs. “If they’re going to fix the current markets and help us small businesses grow, I'm all for it,” Ramirez remarked, reflecting the hope that the tariffs might ultimately lead to a more favorable business environment.
The recent reduction of tariffs on Chinese imports has offered small business owners a temporary reprieve, but the looming uncertainty continues to create challenges. As they navigate this unpredictable landscape, clarity and long-term planning remain elusive. The experiences shared by Alexander, Pavone, Ramirez, and Kim underscore the critical need for stable trade policies that support small businesses in their quest for growth and sustainability.
