Small companies in the United States are facing increasing challenges with President Donald Trump’s tendency to impose new customs definitions, which may lead to increased costs and disrupting growth plans for a large number of companies, according to Bloomberg.
While many small business owners welcomed Trump’s previous promises to reform the economy and reduce organizational regulations, his current trade policy has sparked widespread concern.
According to the optimism index of the works issued by the National Union of Independent Business, optimism between small companies witnessed a record increase after Trump’s victory in the elections.
But with the announcement of 10% customs definitions on Chinese goods, and the imposition of 25% definitions on Canadian and Mexican imports starting next month, many business owners began to express their concerns about the negative impact of these procedures on their business.
High costs and freezing expansion plans
In the state of California, the company “Ledterone” relies on importing some of its components from China, which will make it vulnerable to new tariffs. “My clients will not accept prices, and if I cannot absorb these costs, I have lost some of the main customers.”
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In Florida, the “Sani Tube” factory, which specializes in manufacturing steel and valves for food factories, stopped its expansion plans due to the uncertainty caused by the new commercial tariffs.
“We are now in a state of anticipation. We cannot develop future plans before we know what will happen tomorrow, or during the next month, or even during the next year,” said the president of the company, Todd Adams.
American opportunities amid the crisis
Despite the increasing concerns, some believe that new definitions may give American products a competitive advantage to imports. For example, the upholstered furniture industry was affected by the weakness of the housing market in the United States, forcing Kevin Charles Fine Aplatter in Mississippi to reduce the number of jobs.
The president of the company, Rosti Birhil, said that part of the cheapest products are manufactured in China, and will be subject to new customs duties, but he hopes that this will give him a price advantage for imported Chinese products.
“We have to manage our business according to the new reality. This is the nature of the market, and we have to adapt to the upcoming challenges,” Birhil added.
Wide consequences
Economists warn that Trump’s policies may lead to a decline in the purchasing power of consumers and increased costs for companies, which may harm the long -term economic growth.
A report issued by the Federal Reserve in New York said that the customs definitions imposed by the Trump administration during its first term led to the increase in prices by 0.5% and the increase in production costs for a large number of companies.
