Small Businesses Face High Stakes with China Tariffs

The mood in the room changed instantly. It was April 2, and the news of new tariffs on Chinese goods had just hit. Matt Rollens, a business owner, was in Las Vegas with hundreds of others. The atmosphere shifted dramatically. The tariffs were a big surprise, and not a good one. Everyone was worried about what this meant for their businesses. Many of these tariffs were paused for a while, but the Trump administration hit China with more tariffs. The total rate climbed to 145%. This is a huge increase and a major problem for small businesses. Matt Rollens, the CEO of Dragon Glassware, is one of them. His company makes and sells branded drinkware, like cocktail glasses and tumblers. They are tied to popular movies and TV shows, such as "Barbie" and "Wicked. " Dragon Glassware sells mostly through big retailers like Amazon and Walmart. Most of their products are made in Chinese factories. Before the tariffs, Rollens was ready for higher costs. He thought he could handle it for a while. But 145% is too much. He says these tariffs are a "doomsday scenario" for small businesses. Many could go out of business within months. The idea of moving production away from China isn't simple. It's not just about cost. It's about expertise and quality. One of Dragon Glassware's factories has a glass mold maker with decades of experience. Finding someone like that in the U. S. might be impossible. Many business owners and organizations are speaking out against these tariffs. They say it could raise their expenses and prices for customers. The Trump administration thinks tariffs will boost domestic manufacturing. But for small businesses, that's not realistic. They don't have the resources to build their own factories. The expertise and quality in Chinese factories are hard to match. China was the second-largest supplier of U. S. goods in 2024. A 145% tariff is too high for most importers. It effectively shuts down trade with one of the country's biggest trading partners. The longer these tariffs stay, the worse it gets for small businesses.