The rates get home for small -American -American -based small businesses based on Chinese import

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Small -North -American businesses that have trusted in Chinese manufacture are in a link as Donald Trump’s rates begin to bite, with few capacities to find factories that will produce their goods.

As the Trump administration progresses with 145 percent taxes on China imports, there is a growing concern that commercial paralysis could crush small companies that have flourished with the help of Chinese work, materials and technology.

Chinese manufacturers are considered widely more flexible than their north -American counterparts, accepting smaller orders and more product customizations.

The economic uncertainty around the rates has greatly worsened the economic prospects throughout the country, said the Federal Reserve Beige book On April 23.

CONCERNATIONS ON RATE HAVE ALREADY MODIFIED THE TRADE WITH CHINA, WITH Matters slowing down on the west coast of the United States. Los Angeles scheduled ships go to the court to fall 36 percent a week ending on May 10 of the previous year, according to the statistics of the port.

These fare problems are hitting businessmen like Jacob Sendowski, co -founder of Souper Cubes, who makes silicone trays to preserve cooked envelopes at home. Sendowski said that his business explored the manufacture of his trays in the United States before launching in 2018. Ultimately, the business chose a Chinese installation that would allow them to start with a $ 15,000 order, instead of the $ 100,000 lows that was contributed to the United States.

Sendowski now said that his tariff bill had jumped from “five figures” to “billionaire dollars,” he again explored North -American production, but he was told that the business should invest $ 1.5 million to build his own automated production line.

“If I have to go from $ 20 to the tray to $ 30, I don’t know if people would be willing to pay $ 30, and I don’t want to have to do so,” said Sendowski, adding that he feared that the price hikes would push customers to buy the coup cube in Amazon.

Sendowski and other small business owners selling Chinese manufacturing products have flooded social networks with warnings that taxes could leave them out of business. Some owe hundreds of thousands of dollars in fun to collect their shipments to the ports and complain that the state of the North -Americans make the tournament impossible.

Business leaders warn that small businesses will be the first to suffer the economic pain caused by rates, which Trump says will force China to sign an agreement that fights against “theft of intellectual property, forced technology transfer and other reasonable behaviors.”

“Small businesses could be the ones that would be affected first,” said Stephen Squeri, CEO of American Express, in response to a rate question about a call with analysts last week. “They can be put in a situation and they will not be able to compete effectively in the market.”

Chelsey Brown, founder of the New York Home Product Brand, Curio Blvd, decided to temporarily close his business and fired his two employees next month after the rates cost the import of his unsustainable withholding boxes. Brown said he hired a $ 50,000 loan to pay taxes to pre-ordered inventory clients for mother’s day shopping and could not afford other products that were already manufactured.

North -American factories did not have the necessary equipment to make their $ 180 oak storage boxes, added that a $ 250 per unit production cost was cited, which would be made of lower quality wood.

“We should sell (the box) for $ 400 and it’s not possible,” Brown said. “We cannot increase our prices 100 percent or we will not have customers.”

Mike Hall, CEO of Consulting Alvarez & Marsal, said that large companies are reviewing the financial situation of their smaller suppliers, including if the rates would cause cash flow problems or put them at risk of suffering from bank agreements.

“This is the risk that now begins to climb the head to the market: suppliers causing small moms and pop stores, the second order or the tertiary supply base, are putting the larger corporations at risk,” he said.

Sendowski said he and other small business owners were frantically trying to embrace their supply chains.

“There are now existential questions about the business and how to make the economy of the unit work,” said Sendowski.

Stephen Foley’s additional reports