From her Phoenix home, Erica Campbell is waiting for a cargo ship from China to deliver thousands of Jesus rattle dolls, tin Easter eggs, a religious-themed baby swaddle blanket and 15,000 Jesus wrapping belts.
Campbell, 36, owner of Be A Heart, a Catholic merchandise business, paid a Chinese factory that produces items a few months ago. The boxes were loaded into containers before President Trump imposed a new 10% tariff on all Chinese imports on February 1st. She probably avoided paying additional obligations as a result, but she was worried that more US tariffs would come.
“I don't know what's going to happen,” Campbell said. “I'm on alert.”
Trump's targeting China has disrupted millions of small businesses. For decades, American companies have designed products in the United States and relied on Chinese factories to produce products efficiently and cheaply. It's how Apple produces iPhones and how entrepreneurs like Campbell, the mother of three, run businesses that say they'll generate $2 million in annual sales from the kitchen.
The New York Times hears from nearly 100 companies importing from China about how the president's tariffs are affecting it. These are cross-sections of hard-working companies sewn into the global economy. We are a company that makes greeting cards, board games, outdoor footwear, hangers, digital picture frames, coffee equipment, toys, stained glass windows, and custom electronics.
Several themes have appeared. American companies, not Chinese suppliers, were responsible for the costs of tariffs. Many companies said they need to raise prices if they haven't offset their costs yet. Some people talked about the feeling of business paralysis. They were afraid to plan amid the unpredictable flow of new tariffs.
Looking at domestic alternatives was usually less viable due to the more expensive, poor quality and fewer options. Finally, fully reinventing the supply chain is a major effort for businesses, requiring that time and money cannot be easily reserved.
At the very least, employers are facing a 10% increase in the cost of goods brought in from China, such as components of items assembled in the US or finished products made at facilities in China. You may receive an invoice when the item arrives at port, or additional costs may be combined into shipping costs. In any case, entrepreneurs said that in many cases it would be money out of their pocket.
And that could be just the beginning.
Last week, Trump pledged to place an additional 10% tax on all Chinese imports, which begin on Tuesday, when tariffs in Mexico and Canada are expected to begin. The position of both countries as an important way of Chinese products and the prospect of retaliation gives small business owners another concern. From March 12th, imported steel and aluminum will be 25% obligated. These are two metals controlled by China. US trade officials have proposed to charge charges on Chinese ships entering US ports, which could increase shipping costs from China.
Trump said the 10% tariff was an “opening salvo.” Last year, he pledged to tariffs of up to 60% on the campaign trail.
Even at 10%, tariffs are a major blow to Juliana Rey, a company selling high-end silk sleepwear, as all products are made in China. Based in Burlington, Massachusetts, the company designs silk roves, pajamas and nightgowns produced in China. The product is imported to the US and sold on its website and Amazon.
The company's owners, Bill Keefe and Juli Lee, said they are scrambling to deal with the increased costs that Trump's import taxes are being imposed on them. They imported a lot of stock before the tariffs came into effect, in anticipation of seasonal Christmas and Valentine's Day demand. Lee is also investigating whether Trump will delay some shipments in the hopes of reverse his tariff course.
Pushing an order is a risk. Lee, 56, worries about the lack of products that customers are not available. Her Chinese supplier is already feeling a pinch from the domestic economy's slump, but is nervous as she holds stock for a longer period of time.
“How many bets can I make?” Lee said, referring to a supplier who has grown nearby after working together for over a decade. “Uncertainty is really difficult on both sides.”
In the end, you may need to pass additional costs to the consumer. Keefe, 71, said the price of the popular silk pajama set, retailing for $300, could increase by $15.
However, the 20-year-old company has no choice but to stay in China. Silk manufacturing facilities exist in other countries such as Sri Lanka, India, Korea and Thailand, but “the best machinery, the best expertise and the ability to produce high quality goods at good prices are in China,” Keefe said.
For businesses open to move manufacturing to the US, the challenge is finding factories.
For 18 years, Chris Miksovsky's San Francisco-based Humangear designs outdoor and travel products in the United States and produces them in factories in China.
But remembering the tariff stab wounds in the first Trump presidency, Miksovsky, 56, wanted to see if domestic manufacturing now makes more sense. He wanted to start simply with the Humangear bestseller, but the easiest to create. Plastic cooking utensils with a fork on one end, and the other is a spoon used for camping.
He emailed six companies, four of which did not respond. The two expressed interest and asked many questions about the product specifications. After Mr Miksovsky answered all inquiries, one company stopped responding to his emails, and the other company apologized a few weeks later, but did not provide a quote.
“It's safe to say we're introducing these tariffs and coming back to America,” he said. “It assumes that America has the ability to make your product, and more importantly, it's an interest in making that product.”
Miksovsky said he was probably looking at new manufacturing locations in Thailand and Vietnam, but it was difficult to predict which country Trump would target next.
“Let's say you're spending all your time, effort, money moving this time, effort, money to another country. Trump wakes up and says that morning, “Whether you'll put 60% tariffs on Vietnam, Cambodia, and South Africa or choose your country.” ” he said.
Sean Ernst, 39, diversified his suppliers for SNAP supply, a family's home appliance parts repair parts business.
But now, the 45-year-old family business based in St. Charles, Illinois, is upset by the prospects of double tariffs. The company's repair parts are made of foreign steel and aluminum, which faces higher costs from the new 25% tariffs on these materials. In addition, he may need to pay additional duties when importing products from Mexico. He said it's not clear if he'll be taxed twice, but the possibility is “keep me up at night.”
Ernst, who runs the business with his brother, said his Mexican supplier is willing to absorb the 5% increase in costs. However, SNAP supplies must pass the remaining cost spikes to the customer. He said the $23 oven replacement parts could soon cost $31. If SNAP supply raises prices too much, he fears that his business will become uncompetitive with Chinese companies selling similar parts on Amazon.
He also worried that tariffs might force his company to fire some of his 45 employees, he said.
“We've never been affected by what the President did,” he said. “It's very frustrating to see what's actually going on.”
Campbell, a seller of religious goods, said he is considering handing out some of the additional costs from customs duties to customers. However, her products are not essential and she is reluctant as her customers are already a family like her, who have a high cost of groceries and gas.
The ghost of even higher Chinese import duties makes her feel panic.
“I don't think people understand what it looks like,” she said. “How can you afford this, not just in my business, but in my life, everything comes from China?”
