An uncertain future: Tariffs hurting local small businesses

Yahoo

03-05-2025

May 3—LIMA — Small business owners and local farmers are uncertain what the future holds after President Donald Trump announced tariffs on products imported from and exported to China on April 9.
It adds to an uncertain future, whether it's collectibles, food or fireworks.
"He (President Trump) seems to be on a one-man mission to create uncertainty not only within the United States but about the United States, so it's created uncertainty throughout the entire supply chain," said Mark Bowker, owner of Alter Ego Comics.
It's difficult for business owners like Greg Greer, owner of Springfield Fireworks in Bluffton.
"The fireworks industry in the United States is 100 percent dependent on China. They can't make them in the United States," said Greer.
What's a tariff?
A tariff is a government-imposed tax on goods imported from other countries. According to an April 2 fact sheet from the White House website, the Trump Administration is enacting tariffs to:
—Restore national economic security
—Reduce trade deficit with other nations (balance the import/export ratio)
—Ensure fair trade
—Reprioritize U.S. manufacturing
Tariffs would create new incentives for consumers to buy American-made products, according to the fact sheet.
Trump raised the tariffs on China as high as 245 percent, including a 125 percent reciprocal tariff, a 20 percent tariff to address the fentanyl crisis, and Section 301 tariffs on specific goods, between 7.5 and 100 percent after retaliation from China.
A reciprocal tariff matches the tariff rates that the other country imposes on the same country's exports.
As of Friday, China has a 135 percent tariff on U.S. imports, and the U.S. has a 145 percent tariff on Chinese imports.
Farmers are affected by the tariffs on U.S. exports, including soybeans.
Soybeans
China also ranks as one of the top three export destinations for the United States, particularly for soybeans. "20 to 22 percent of our soybeans go to China," Ty Higgins, senior director of communications and media relations with the Ohio Farm Bureau said in a phone call.
Chinese tariffs are just another reason for the farming community to feel uncertain.
"Tariffs are another layer of what farmers have been dealing with, with weather and markets," Higgins said. "I don't think I've said the word uncertainty more than I have over the last couple of months."
Small business owners are feeling the same way.
Popular Chinese exports include toys, collectibles, board games, coffee and fireworks, which could lead to a shortage as Independence Day approaches.
Collectibles
Alter Ego Comics owner Mark Bowker has developed a sense of uncertainty, both within his business and toward the president.
Bowker's number one revenue category is licensed figurines made by Hot Toys Collectible Figures based in Hong Kong.
Due to tariffs, Bowker will have to address increased prices for items ordered more than a year ago that the store is still waiting for.
"I placed my order over a year ago for that Wolverine figurine. We are close to sold out, and now we're going to get hit with a 14 percent increase on that item," Bowker said.
Bowker will have to inform customers of the approximate $18 hike in price and understands if the consumer backs out.
"I ordered from my supplier at a certain price, my customer has reserved one with me at a certain price, and I'm going to have to come back and say, 'Well, because of the tariffs we need to charge you 6 percent more and we're going to eat 8 percent of that 14 percent.'"
The more than $10,000 of Wolverine figurines ordered will now cost $11,400 with the additional 14 percent tax. "I'm very aware that everything that I sell is a want. But there will be things that people need that will be affected by the tariffs as well," Bowker said.
Independence Day celebration in question
Greer wasn't sure what kind of fireworks might be available as the Fourth of July rolls around.
"We still have five more containers yet to come in that are going to be under the higher tariff. Once we get the new stuff in we'll adjust the prices," Greer said.
Sixty-two days before Independence Day, the issue arises when expectations for the holiday are high due to the holiday being on a Friday this year and a Saturday next year. The year 2026 also marks the 250th anniversary since the United States signed the Declaration of Independence.
Springfield placed the bulk of its order for this year around last August, which has Greer worried about a potential shortage due to customers buying early.
"What they're saying is that industry-wide, they think there will be a shortage this year. If there's a shortage of fireworks and we sell out of what we got this year, the replacement cost ordering for next year, prices are going to be a lot higher next year," Greer said.
Greer sees potential challenges for places that open seasonally and is uncertain about firework shows.
"Some of the seasonal places, from what we've heard, aren't going to open this year. Even the big firework shows, from what they're saying, some of these smaller communities aren't going to be able to afford the professional firework shows."
Coffee and other materials
Rode's Meats and Meeting Place on Market are experiencing rising costs in supplies imported from China.
Both beef and coffee bean prices have consistently increased before tariffs.
"I'm trying to juggle suppliers without sacrificing quality because we buy premium beans and there are only so many," Meeting Place on Market Executive Director Jennifer Brogee said in an email. "Meeting Place On Market purchases its coffee bags and disposable cups, coffee sleeves, lids and plates made from biodegradable materials like cornstarch and sugar cane from China."
Rode's Meats has seen a 15 percent increase in packaging material that comes from China, said owner Jim Rode in a phone call.
Rode predicts that consumers will be tighter with money and will be shopping less. "Before Covid there was more work than we knew what to do with," Rode said.
Higgins, the Farm Bureau and farmers believe there is light at the end of the tunnel. "The hope for us and for the administration obviously is that we come out of this stronger," Higgins said. "We're going to be in a much better position globally."
Reach Cade Higgins at 567-242-0351
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