Small businesses face financial whiplash from Trump’s changing tariffs on China

Los Angeles — Bobby Djavaheri, a business owner in Los Angeles, is feeling the financial pressure of sky-high tariffs on Chinese imports that threaten his livelihood. Djavaheri, who runs Yedi Houseware Appliances, specializes in selling small kitchen appliances like air fryers and rice cookers, all of which are manufactured in China.

With the recent imposition of a 145% tariff on Chinese goods by President Trump, Djavaheri received hefty duty tax bills ranging from $9,000 to $21,000 on his latest shipments. This significant increase in costs has put a strain on his business, which operates on narrow profit margins.

Despite the temporary reduction of tariffs to 30% following a truce between the U.S. and China, Djavaheri is still grappling with the financial burden. He has been forced to raise prices on his products and is now rushing to stock up on inventory for the upcoming holiday season.

The dilemma faced by many U.S. businesses like Djavaheri’s is whether to absorb the higher shipping costs at the current tariff rate or wait in hopes of further tariff reductions by the Trump administration. The uncertainty surrounding tariffs has led companies to seek out alternatives such as foreign trade zone facilities and bonded warehouses near ports and airports to temporarily avoid paying duties.

Ryan Petersen, CEO of Flexport, a logistics company, highlighted the challenges businesses are facing with the upfront cash outlay required to pay tariffs. Many businesses, like Djavaheri’s, are struggling to navigate the financial impact of fluctuating tariff rates on their bottom line.

Despite the financial setbacks, Djavaheri remains determined to weather the storm. He acknowledges that the current trade war has put his profitability at risk this year but is focused on staying afloat amidst the uncertainty.

As the trade war continues to unfold, businesses like Yedi Houseware Appliances are left to adapt to the changing landscape of global trade policies. Djavaheri’s story serves as a stark reminder of the challenges faced by small business owners in an increasingly volatile economic environment.