() The first major talks between the United States and China since the start of the trade war is set to begin this weekend in Switzerland.
Small businesses in America, however, are already sounding the alarm on tariffs, saying the costs could be catastrophic. They say pressure is mounting to increase prices and manage supply distributions.
Beth Benike, the owner of Busy Baby, joined ” Live” recently to talk about the impact tariffs have had on her business. She said she had to store her business’s latest shipment because it was not affordable, and she would have to rely on her existing inventory instead.
Others say the tariffs are a “financial gut punch” with bigger bills for imported parts, goods and their materials. Unlike big box stores, small businesses don’t always have a cushion to soften the financial blow, and have to make tough choices like delaying hiring, or even closing their doors for good according to the U.S. Chamber of Commerce.
Some businesses are trying to shift to source their goods locally or trying to work with countries that have lower tariffs to offset the costs. Others are slowing their growth and even taking out emergency loans.
Elad Inbar, the owner of Robot Lab, imports most of his business’s materials from China. He says they are moving to find workarounds from the tariffs.
“We’re working with manufacturers from all around the world, like Korea, Singapore, Japan and France, and in the U.S. as well,” Inbar said.
The White House says there likely won’t be any tariff relief, but small businesses could get some relief from costs in the form of tax cuts. The U.S. Chamber of Commerce has continued to push for tariff exemptions for small businesses.
