Small American firms are struggling to navigate rapidly changing US tariff policies, introduced in April by President Donald Trump, which impose levies on almost all trading partners. Rates have swung dramatically, with Cambodian exports shifting from zero to as high as 49 per cent before settling at 19 per cent.
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Ben Knepler, founder of Pennsylvania-based outdoor furniture company True Places, halted production in Cambodia after the planned duties made imports unaffordable, despite moving operations there from China to avoid earlier tariffs. Many companies, producing goods from dog harnesses to clothing abroad, are passing costs to customers, halting imports, or accelerating shipments to beat tariff hikes.
Business owners stress that they, not foreign governments, bear the upfront tariff costs, creating financial strain and uncertainty. Some, like Maryland-based Barton O'Brien, have stockpiled goods from China, India and Vietnam, all facing substantial new duties.
Economists warn that average US tariffs have surged to 17.6 per cent from 2.8 per cent earlier this year, the highest since the 1930s, potentially fuelling inflation and slowing growth. Legal challenges to the measures are mounting, but for many firms, survival depends on adapting quickly to the unpredictable trade landscape.
Source: www.barrons.com
