Small Firms Face Big Hurdles Due to Trade Policies

Small and medium-sized businesses are feeling the pinch from recent trade policies. These companies make up a significant portion of the US import market, bringing in goods worth $868 billion each year. Unlike giant corporations, these smaller firms are more vulnerable to financial disruptions. Many of these businesses are struggling to stay afloat. Nearly 20% of them are pessimistic about their survival over the next five years. The situation is even worse for companies without access to financing. About 13% of these firms believe they might not make it through the next two years. Take MGA Entertainment, for example. The company, known for its popular toys like Bratz dolls and L. O. L. Surprise, has had to pay nearly $10 million in tariffs in just two weeks. This has forced them to put their expansion plans on hold and may even lead to layoffs. The toy industry is lobbying for an exemption from the high tariffs on Chinese goods. However, companies like Apple have more influence and can negotiate better deals. The CEO of MGA Entertainment has appealed to the President, urging him to exempt toys from tariffs. He even invited the President to visit their factory in Ohio. Meanwhile, Wonderstate Coffee is also feeling the heat. Before the tariff wars, they were on track for a 15% growth this year. Now, they're struggling to pay an extra $20, 000 in tariffs on a shipment of coffee beans. They might have to cut back on their employee profit-sharing program. Tarptent Inc. , a company that makes outdoor gear, has had to suspend operations at one of its factories in Hong Kong due to high tariff rates. They're facing a significant drop in revenue and may have to shut down or redefine their business if the tariffs remain in place. Vikre Distilling, a vodka, gin, and whiskey maker, is bracing for price hikes from their vendors due to the tariffs. They've already seen a drop in sales and may have to return some of their warehouse and retail space. Out There Outfitters, an apparel store, is worried about having to lay off employees due to the tariffs. They're also uncertain about when and at what rate the tariffs will be implemented. Kamhi World, a toy seller, has halted all overseas manufacturing due to the tariffs. They're looking into moving production to Vietnam or Mexico, but it's not an easy process. They're also considering US manufacturing, but the costs are much higher. These companies are just a few examples of how trade policies can impact small and medium-sized businesses. It's a complex issue that affects not just the companies, but also their employees and families.