Imports at the Port of Los Angeles, the nation’s busiest seaport, may experience slowdowns by May as businesses respond to President Donald Trump’s 145% tariffs on Chinese imports. The tariffs, which affected nearly $440 billion in goods to the United States in 2024, are creating challenges for businesses, especially small businesses, many of which rely on affordable imports for materials not available domestically.
Christina and Ian Lacey, owners of Retuned Jewelry in Denver, have seen significant growth since founding the business in 2017, generating an average of $360,000 in annual sales. The couple creates jewelry from donated guitar and bass strings, but the beads, chains, clasps, and hooks they use come from China. Despite efforts to source these materials domestically, they have found that such products are not available in the U.S.
“We’ve looked,” Ian Lacey said. “There’s no facility here that makes what we need.” In response to the tariff increase, the Laceys have raised their prices, but face uncertainty about their future.
John Arensmeyer, founder and CEO of Small Business Majority, an advocacy group for small businesses, emphasized that smaller businesses have less financial flexibility and fewer opportunities to negotiate prices with suppliers. Arensmeyer warned that businesses may be forced to increase prices, reduce staff, delay expansion, or even shut down as they struggle with rising import costs.
The Mitchell Group, a second-generation textile company in Niles, Illinois, is also facing challenges due to the tariffs. Ann Brunett, the company’s COO, explained that the tariffs have strained the company’s cash flow, especially when goods must sit in inventory until needed. “We’re paying a 45% tariff — plus duty — to bring in products that might sit on a shelf,” she said.
The company, which employs 18 full-time staff and generates nearly $10 million in annual revenue, has explored alternatives like production in Vietnam, India, and Malaysia. However, Bill Fisch, the company’s president, noted that the infrastructure available in China for producing textiles and specialized fabrics is unmatched. “You can’t make one part in Vietnam, another in India, and assemble in Thailand. It doesn’t work,” Fisch said.
Despite efforts to promote domestic manufacturing, experts believe that a significant shift in U.S. production may take years. Sheng Lu, a professor at the University of Delaware’s Department of Fashion and Apparel Studies, pointed out that the U.S. textile industry has been in decline for decades due to the rise of overseas production.
For the Mitchell Group, key materials such as specialized vinyl polymers and textiles are not produced in the U.S., and finding enough workers to staff a domestic facility has proven difficult. Fisch added that the challenges facing the textile industry in the U.S. show that the return of production is unlikely in the short term. “The textile business for our kind of product? It’s gone here,” he said.
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