Definitions at home were struck for small American companies that depend on Chinese imports

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The small American companies that relied on Chinese manufacturing are in a binding condition, as Donald Trump’s tariff begins in the sting, with a few American factories that will produce their goods.

As the Trump administration advances 145 percent of imports on imports from China, there are increasing concerns that commercial paralysis can crush small companies that flourished with the help of Chinese workers, materials and technology.

Chinese manufacturers are widely more flexible than their American counterparts, accept smaller requests and more products.

The Federal Reserve at the Federal Reserve said that the economic uncertainty surrounding the definitions has greatly worsened economic expectations throughout the country. Beige book On April 23.

I have already changed concerns about customs tariffs with China, with Slow down imports To the American West Coast. The ships scheduled for Los Angeles are on the right path to drop 36 percent per week ending May 10 of the previous year, according to port statistics.

Customs tariff problems strike entrepreneurs such as Jacob Sendowski, co -founder of Souper Cubes, making silicone trays to keep food residue cooked at home. Sendowski said his work explored the manufacture of its trays in the United States before its launch in 2018. In the end, the works chose a Chinese facility that allowed them to start a $ 15,000 order, instead of the minimum $ 100,000 that was transferred in the United States.

Sendowski now said that his customs tariff bill has bent from “five numbers” to “millions of dollars”, and he once again explored US production, but he was told that work would have to invest $ 1.5 million to build the allocated automated production line.

“If you have to move from shipping $ 20 per tray to $ 30, I don’t know if people will be ready to pay $ 30, and I do not want to do that,” Sendowski said.

Sendowski and other small business owners who sell the Chinese products dumping social media warnings that the fees could put them out of work. Some condemn hundreds of thousands of dollars in duties in order to collect their shipments in the ports and complain that the United States factories make recharge impossible.

Business leaders warn that small companies will be the first to suffer from the economic pain caused by the customs tariff, which Trump says will force China to sign a deal that fights “theft of intellectual property, the transfer of forced technology, and other unreasonable behavior.”

“Small companies may be companies that will be affected first,” said Stepress Sugari’s CEO, in response to a question about a call with analysts last week. “It can be placed in a position and you will not be able to compete effectively in the market.”

Chelsey Brown, the founder of the New York -based home commodity brand, decided to temporarily close her work and remove her employees next month after the customs tariff made the cost of importing taste boxes for them. Brown said she had received a $ 50,000 loan to pay fees on pre -store customers for shopping on Mother’s Day, and she could not bear the import of other products that were already manufactured.

She said that the American factories did not have the equipment needed to manufacture $ 180 oak storage boxes, adding that they quoted a cost of $ 250 production per unit made of less quality wood.

“We will have to sell (the box) for $ 400 and it is not possible,” said Brown. “We cannot raise our prices by 100 percent, or we will not have customers.”

Mike Hall, Managing Director of Consulting Alvarez & Marsal, said that large companies have declined the financial situation of their smaller suppliers, including whether the definitions will lead to problems in cash flow or their exposure to the risk of banks.

He said: “This is the danger that has now begun to raise his head in the market: suppliers who put the source from the mother and small pop stores, and the second and the high supply base, to put larger companies at risk.”

Sendowski said that he and other small business owners were trying to support their supply chains.

“There are now existential questions about work and how to make unit economics work,” said Sendowski.

Additional reports by Stephen Foley