AP Business Writer May Anderson
New York (AP) – Major orders have been cancelled. Product containers are stuck abroad. There is no roadmap for what comes next.
The Trump administration raised tariffs on goods from China to 145% in early April. Since then, small business owners who have relied on imports from China to survive have become increasingly desperate as they witness inventory and surge invoices.
President Donald Trump seemed to have retreated somewhat last week when he said he expected tariffs to fall “effectively.” It helped to launch a meeting in the stock market. However, for small businesses operating at thin razor margins, the round-trip has caused massive upheavals. Some say it could only be a few months since they went out of business altogether.
Family-owned gaming companies in Massachusetts
According to the Toy Association, game makers are particularly affected by tariffs, as most of the games and toys sold in the US are made in China.
Based in Manchester, Massachusetts, WS Game Co. is a family-owned business that licenses Hasbro Board games such as Monopoly, Candy Land, and Scrabble and creates deluxe versions of them. The most popular game line comes in a box that looks like a vintage book and sells for $40.
The company’s games were featured on Oprah’s Favorites list in 2024, sold in 14,000 North American stores, ranging from large chains to Mama and Pop stores, says Jonathan Silva, the owner whose father founded the company in 2000.
All production of WS games takes place in China. The tariffs have stopped healthy growth over the past 25 years and stopped.
Over the past three weeks, WS Games have had three containers of completed games worth $500,000 that have been left behind in China. We lost orders from three of the largest retailers in the United States from our business totaling $16 million. And there’s not much Silva can do about it.
“As a small business, we don’t have the ability to move the runways and manufacturing on a whim,” said Silva, who has 22 employees. He says tariffs “disturb our business and put us on the bank’s crisis,” and estimates that they have a runway of about four months to float even when nothing changes.
“I really hope that the cooler head wins,” he said.
Kentucky artificial flowers
Jeremy Rice, a home residency in Lexington, Kentucky, is the co-owner of the home that specializes in artificial flower arrangements. Approximately 90% of the flowers his business uses are made in China.
The rice uses dozens of vendors. The biggest thing is to absorb some of the tariff costs and pass the rest. One vendor is increasing prices by 20% and another 25%. But Rice expects smaller vendors to raise prices at a much higher percentage.
The home offers medium artificial flowers. For example, a large hydrangea head can be sold for between $10 and $16. China is the only place where manufacturers make high quality silk flowers. Rice said it takes vendors years to open factories in another country or move production somewhere else.
Rice ordered his holiday decorations earlier this year. But even after supplying stock ahead of the tariffs, he only has enough daily flower stock to last for two or three months.
“I don’t know what we’re going to do after that,” he said.
Rice is concerned that the trade war will wipe out mama and pop stores, just like what happened during the Great Recession and the pandemic.
“There’s nothing to do about where to go,” he said.
Michigan tea
A tea shop in a university town in Michigan has also been caught up in the middle of an ongoing customs war.
“We’re looking forward to seeing you in the world,” said Lisa McDonald, owner of Tea House in Ann Arbor, home to the University of Michigan. McDonald’s has owned a tea house for nearly 18 years and sells tea to customers all over the United States.
According to the American Tea Association, Americans drank about 86 billion people in 2024. Due to factors ranging from climate to cost, tea is not grown on a large scale in the US, so almost all of it is imported.
McDonald’s imports loose leaf tea from China, India, Kenya, Sri Lanka and other countries. She says her client base is “from the US and the world.” But she’s worried about limiting what they use. Her premium tea costs up to $33 for a 50 gram bag.
“No matter how amazing the tea is, I don’t think I can charge $75 for a 50 gram tea bag,” she said.
McDonald understands Trump’s rationale for wanting to use tariffs to promote US manufacturing, but says that doesn’t apply to the tea industry.
“We cannot grow tea in the US as long as we need it. We cannot turn the industry upside down or “make a lot of tea” in the US. That won’t happen,” she said.
Oklahoma car accessories
Oklahoma City-based Jim Umrauf business 4knines manufactures vehicle seat covers and cargo liners for dog owners and others. To do this, you will need Chinese raw materials such as fabrics, coatings, and ingredients.
Umlauf has been exploring manufacturing in countries other than China since 2018, when Trump first enacted a 25% tariff on goods from China, but encountered complications. In the meantime, 4knines will absorb the extra costs. This says Umlauf has limited growth and narrowed its margins.
Now, new tariffs make it nearly impossible to do business. Demand is there, but the company cannot afford to bring in more products.
“The inventory is only limited, and there’s no small amount of relief and it’s going to run out quickly,” Umlauf said.
As a small business owner who worked hard to develop high quality brands, create jobs and contribute to the community, Umlauf is frustrated. He tried to reach out to the White House and other decision makers to seek support from small businesses. However, he had zero response.
“It’s time for policymakers to consider not only stock prices and global competitiveness, but also the full impact of trade policy on real people who run small businesses,” he said.
Detroit’s AP VideoJournalist Mike Homederer contributed to this report.
Original issue: April 29, 2025 9:42am EDT
