NEW YORK — For many American small business owners, the latest round of tariffs on Chinese imports has pushed them to the brink. With tariffs now as high as 145%, major product shipments are stranded overseas, invoices are piling up, and future operations are uncertain.

While President Donald Trump recently hinted that the tariffs could “come down substantially,” the damage is already being felt. For small businesses operating on tight margins, the financial strain and policy unpredictability have created a crisis with no clear end in sight.

In Manchester-by-the-Sea, Massachusetts, WS Game Company—a family-run business that creates deluxe editions of Hasbro classics like Monopoly and Scrabble—has seen its 25 years of growth abruptly stall.

The company’s games, which retail for $40 and were featured on Oprah’s Favorite Things list in 2024, are manufactured entirely in China. Now, three of its shipping containers—carrying $500,000 worth of finished games—are stuck overseas. More critically, the company lost $16 million in orders from three major U.S. retailers.

“We can’t just switch manufacturers overnight,” said owner Jonathan Silva. With only about four months of financial runway left, Silva warns, “These tariffs have disrupted our business and put us on the verge of insolvency.”

In Lexington, Kentucky, Jeremy Rice co-owns House, a home décor store that relies heavily on silk flowers from China—about 90% of their inventory.

Vendors are already hiking prices by 20% to 25%, and smaller suppliers are expected to raise them even higher. Despite ordering holiday stock early, Rice only has enough everyday inventory to last a few months.

“After that, I don’t know what we’re going to do,” he said, fearing a wave of small store closures similar to what happened during the Great Recession and the pandemic.

In Ann Arbor, Michigan, Lisa McDonald, owner of TeaHaus, says the tariffs have left her with a sinking feeling. Her shop, located near the University of Michigan, has served premium teas for nearly 18 years.

With the U.S. importing almost all of its tea due to climate and cost, McDonald can’t simply shift suppliers. Her premium blends—some priced up to $33 for a 50g bag—could become unaffordable if tariffs stay in place.

“We can’t just flip a switch and grow tea in America,” she said. “It’s not realistic.”

Jim Umlauf, owner of 4Knines in Oklahoma City, makes pet-friendly seat covers and cargo liners for vehicles—products that require specialized materials from China.

Umlauf tried moving production elsewhere after the 2018 tariffs but hit roadblocks. Now, with the newest tariffs in place, he says they’re barely surviving. “We have a limited amount of inventory left, and without some relief, we’ll run out soon.”

Frustrated by the lack of response from government officials, Umlauf added: “It’s time for policymakers to understand that trade policy affects real people, not just stock prices.”

For small businesses across America—from tea sellers to board game makers—the tariff war with China is doing more than reshaping trade policy. It’s threatening their very survival. Without swift relief or support, many could soon shut their doors for good.

Source: AP News – ‘Nowhere to turn’: Small businesses dependent on imports from China are feeling more desperate

The post Small U.S. Businesses Struggle as China Tariffs Hit Hard appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

Caught in the Trade War Crossfire

Walmart is feeling the heat as tensions rise between the United States and China over escalating tariffs. Chinese officials confirmed on Thursday that they had met with executives from the U.S. retail giant following reports that Walmart pressured its Chinese suppliers for discounts to offset the impact of new tariffs imposed by President Donald Trump.

“Our relevant departments have reached out to Walmart to further understand the situation, and the company has provided an explanation,” said He Yongqian, a spokesperson for China’s Commerce Ministry. However, no further details were provided.

Trump’s Tariff Hike Sparks Backlash

Last week, President Trump doubled tariffs on all Chinese imports, raising them to 20%. In retaliation, China imposed fresh tariffs on U.S. agricultural imports, which took effect on Monday.

Many businesses are struggling to adjust to the rapid shifts in trade policy, with retailers warning of potential price hikes as inflation squeezes consumers. Walmart, the world’s largest retailer, is no exception.

Walmart’s Request for Supplier Discounts

To mitigate the financial strain, Bloomberg reported that Walmart has asked some of its Chinese vendors for price cuts of up to 10%. The move aims to absorb the cost of U.S. levies without significantly raising prices for American consumers.

However, Walmart’s approach has not gone unnoticed by Chinese authorities. On Wednesday, state broadcaster CCTV’s social media platform, Yuyuantantian, posted a warning, stating:

“Walmart’s demand for Chinese suppliers to bear the full tariff burden is unreasonable and disrupts fair competition and international trade order.”

The post also hinted that Chinese authorities could take further action if Walmart continues pressing suppliers for lower prices.

Chinese Suppliers Already Under Pressure

While price negotiations are common in China’s business landscape, Walmart’s request comes at a time when many Chinese manufacturers are already struggling with thin profit margins. Increased production costs and supply chain disruptions have made it challenging for suppliers to offer additional discounts.

In a statement to CNN, Walmart defended its actions, stating:

“Our goal is to help people save money and live better. Our conversations with suppliers are aimed at making that a reality for millions of customers. We will continue to work closely with them to navigate these uncertain times.”

Walmart’s Significant Presence in China

Walmart is not just a major U.S. retailer sourcing products from China—it also has a thriving business within the country. The company entered China in 1996 and opened its first superstore and Sam’s Club in Shenzhen.

Today, Walmart operates in more than 100 Chinese cities. In its most recent financial year, the company reported a 16% increase in net sales, reaching $17 billion in China.

What’s Next?

As the U.S.-China trade war intensifies, Walmart’s operations in both countries remain vulnerable to ongoing tensions. If Chinese authorities decide to take action against the retailer, Walmart could face further challenges in its supply chain and market position.

For now, Walmart is walking a tightrope—balancing its relationship with Chinese suppliers while trying to shield American consumers from rising prices.

Source

The post Walmart Under Pressure in China After Trump’s Tariff Hike appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

Why the Tariffs?

In a post on Truth Social, Trump cited the illicit smuggling of fentanyl as the primary reason for the new tariffs.

“We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled,” Trump wrote.

• Mexico and Canada: A 25% tariff on most imports and a 10% tariff specifically on Canadian energy products like oil and electricity.
• China: The existing 10% universal tariff will double to 20% as part of efforts to curb the supply of chemicals used in fentanyl production.

Economic Impact and Stock Market Reaction

The announcement immediately rattled global markets, with concerns over higher consumer prices, potential inflation spikes, and economic slowdowns.

• The S&P 500 index dropped 1.6% on Thursday, wiping out nearly all post-election gains.
• The total cost of the Mexico and Canada tariffs for U.S. consumers is estimated between $120 billion and $225 billion annually.
• Additional tariffs on China could add another $25 billion in costs.

Consumer Concerns Over Inflation

Trump dismissed concerns that tariffs increase prices for consumers and importing companies, calling it “a myth.” However, economists argue that tariffs typically lead to higher costs for businesses and consumers, slowing economic growth.

Mexico and Canada Respond

Both Mexico and Canada emphasized their efforts to address drug trafficking and border security in response to Trump’s decision.

Mexico’s Reaction

• Mexican President Claudia Sheinbaum expressed hopes for negotiations before the tariffs take effect.
• Mexico deployed 10,000 National Guard troops to its border and is increasing intelligence-sharing efforts with U.S. officials.
• Sheinbaum remains optimistic:
  

  “I hope we are able to reach an agreement and on March 4 we can announce something else.”

Canada’s Reaction

• Prime Minister Justin Trudeau defended Canada’s $1 billion investment in border security and pushed back against claims of a crisis.
• Canada has prepared retaliatory tariffs on $30 billion of U.S. products, with an additional $125 billion in tariffs planned for three weeks later if no resolution is reached.
  

  “There is no emergency for the United States at the border with Canada when it comes to fentanyl,” Trudeau said.

China Calls for Trade Talks

China also criticized the doubling of tariffs and called for dialogue and negotiation.

• Commerce Minister Wang Wentao reached out to U.S. trade officials, urging a diplomatic solution instead of escalating tariffs.

More Tariffs on the Horizon?

Trump’s tariff strategy may expand further, with additional plans including:
25% tariffs on European imports
Tariffs on autos, computer chips, and pharmaceuticals
The removal of exemptions on steel, aluminum, and copper imports

Additionally, Trump confirmed that his “Reciprocal Tariff Plan” will begin on April 2, meaning U.S. tariffs will mirror the taxes imposed by other countries on American goods.

“The April Second Reciprocal Tariff date will remain in full force and effect,” Trump stated.

Consumer Confidence Drops Amid Tariff Fears

The announcement has already shaken consumer confidence, adding to economic uncertainty.

• The Conference Board’s Consumer Confidence Index dropped 7 points to 98.3, its largest decline since August 2021.
• Inflation expectations jumped from 5.2% to 6% in February, raising concerns about future economic stability.

“There was a sharp increase in the mentions of trade and tariffs, back to a level unseen since 2019,” said economist Stephanie Guichard of the Conference Board.

What’s Next?

With just days before the March 4 deadline, all eyes are on potential diplomatic negotiations between the U.S., Mexico, and Canada. However, the threat of a broader trade war looms, with retaliatory tariffs from key U.S. trade partners already in the works.

Key Takeaways:
Trump plans to impose tariffs on Mexico, Canada, and China starting March 4.
Stock markets and consumer confidence are already showing signs of instability.
Mexico and Canada are pushing for negotiations but are ready to retaliate if necessary.
China urges dialogue but faces a higher tariff rate from the U.S.
More tariffs on Europe, automobiles, and tech may follow.

With tensions rising, the next few weeks will be critical in determining whether Trump’s tariff strategy strengthens or weakens the U.S. economy.

Source

The post Trump to Impose New Tariffs on Mexico, Canada, and China appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.