American importers are finding it hard to cope with a wave of new tariffs on Chinese goods announced by US President Donald Trump , with some warning of dire consequences.
Rick Woldenberg, CEO of Illinois-based educational toy company Learning Resources, called the situation "the end of days" after Trump abruptly raised tariffs on Chinese imports to 145 per cent, up from an already steep 54 per cent. The move, intended to punish China for alleged unfair trade practices, has blindsided business owners.
"When he announced a 20 per cent tariff, I made a plan to survive 40 per cent, and I thought I was being clever," said Woldenberg. "I never imagined 145 per cent."
The impact on Learning Resources — a third-generation family-run business that has manufactured toys in China for decades — could be devastating. Woldenberg estimates the company's tariff bill will soar from $2.3 million in 2024 to over $100 million in 2025. "I wish I had $100 million," he said. "Honest to God, it feels like the end of days."
Many American companies have long depended on Chinese manufacturing for affordable consumer products. China still supplies the majority of key items, including toys, baby carriages, coloring books, and holiday decorations. But Trump's tariffs are threatening to upend those supply chains overnight.
The sudden hike has also forced businesses like MGA Entertainment — the maker of popular Bratz and LOL dolls — to raise prices and consider slashing production. Founder Isaac Larian said his company sources 65 per cent of products from China and warned that prices for some toys could nearly triple.
Even companies producing goods in the US aren't immune. Parts for American-made toys still come from China, and the tariffs are driving up costs across the board.
Business leaders say it's not just the size of the tariffs, but the unpredictability with which they're being rolled out that's hurting them the most. "No business can run on uncertainty," Larian said.
Marc Rosenberg, CEO of The Edge Desk, has halted production of a new ergonomic chair planned for China and is now considering selling in Europe instead, where he won't face Trump's tariffs. "They didn't have the skilled labor here, and they didn't have the desire to do it," he said, referring to US manufacturers.
Woldenberg, whose company employs 90 per cent of its staff in the US, said shifting manufacturing stateside simply isn't feasible. "There is no idle manufacturing hub standing ready for us," he said.
Industry experts warn that the ripple effects could be severe, with potential layoffs, product shortages, and significant inflation. The national retail federation has described the scale of tariffs as "apocalyptic."
Yale estimates the tariffs could shave more than 1 percentage point off US economic growth by 2025, while consumer sentiment surveys show Americans already bracing for higher prices.
"This could mark the end of an era of cheap consumer goods in America," said supply chain expert Joe Jurken. "We got addicted to cheap Chinese goods — now the hangover's here."
Rick Woldenberg, CEO of Illinois-based educational toy company Learning Resources, called the situation "the end of days" after Trump abruptly raised tariffs on Chinese imports to 145 per cent, up from an already steep 54 per cent. The move, intended to punish China for alleged unfair trade practices, has blindsided business owners.
"When he announced a 20 per cent tariff, I made a plan to survive 40 per cent, and I thought I was being clever," said Woldenberg. "I never imagined 145 per cent."
The impact on Learning Resources — a third-generation family-run business that has manufactured toys in China for decades — could be devastating. Woldenberg estimates the company's tariff bill will soar from $2.3 million in 2024 to over $100 million in 2025. "I wish I had $100 million," he said. "Honest to God, it feels like the end of days."
Many American companies have long depended on Chinese manufacturing for affordable consumer products. China still supplies the majority of key items, including toys, baby carriages, coloring books, and holiday decorations. But Trump's tariffs are threatening to upend those supply chains overnight.
The sudden hike has also forced businesses like MGA Entertainment — the maker of popular Bratz and LOL dolls — to raise prices and consider slashing production. Founder Isaac Larian said his company sources 65 per cent of products from China and warned that prices for some toys could nearly triple.
Even companies producing goods in the US aren't immune. Parts for American-made toys still come from China, and the tariffs are driving up costs across the board.
Business leaders say it's not just the size of the tariffs, but the unpredictability with which they're being rolled out that's hurting them the most. "No business can run on uncertainty," Larian said.
Marc Rosenberg, CEO of The Edge Desk, has halted production of a new ergonomic chair planned for China and is now considering selling in Europe instead, where he won't face Trump's tariffs. "They didn't have the skilled labor here, and they didn't have the desire to do it," he said, referring to US manufacturers.
Woldenberg, whose company employs 90 per cent of its staff in the US, said shifting manufacturing stateside simply isn't feasible. "There is no idle manufacturing hub standing ready for us," he said.
Industry experts warn that the ripple effects could be severe, with potential layoffs, product shortages, and significant inflation. The national retail federation has described the scale of tariffs as "apocalyptic."
Yale estimates the tariffs could shave more than 1 percentage point off US economic growth by 2025, while consumer sentiment surveys show Americans already bracing for higher prices.
"This could mark the end of an era of cheap consumer goods in America," said supply chain expert Joe Jurken. "We got addicted to cheap Chinese goods — now the hangover's here."
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