In the world of retail, there’s no shortage of competition. However, the recent increase in tariffs on Chinese imports has taken a significant toll on small businesses, particularly those in the costume and holiday decoration industry.

The Impact on Costume and Holiday Decoration Businesses

Costume and holiday decoration businesses are among the most affected by the tariffs. These businesses rely heavily on Chinese factories to produce their products, which are then shipped to the US. With tariffs in place, the cost of these products is skyrocketing, making it difficult for small businesses to compete.

• Imposta, a costume and holiday decoration business, has seen its wholesale customers cancel orders due to the tariffs, leaving the company at risk of shutting down.
• Walmart has also indicated that it may cut back on orders, making it difficult for Imposta to turn a profit.
• Other businesses, such as Orman Inc., are also feeling the pinch, with hundreds of thousands of dollars worth of holiday decor sitting in China.

The Effects on Small Business Owners

The tariffs have not only affected the businesses themselves but also their owners. Many small business owners are feeling anxious and uncertain about their future.

• Robert Berman, CEO of Imposta, says that the tariffs are a “fatal blow” to his business and could cause it to shut down.
• Derek Gould, vice president of Orman Inc., says that the tariffs are a “multiyear venture” that would require significant investment and resources.
• Other business owners are also expressing concerns about the impact of the tariffs on their businesses.

The Long-Term Consequences

The tariffs have long-term consequences that go beyond the immediate impact on small businesses. The uncertainty and volatility caused by the tariffs are affecting the entire economy.

A Changing Industry

The industry is changing, and the tariffs are a symptom of a larger issue. The industry has left America, and many businesses are struggling to compete with foreign-made products.

• Robert Berman says that he doesn’t see cut-and-sew manufacturing coming back to the US.
• Jodi Berman, co-business partner of Imposta, says that the industry has left America and that small businesses like hers are struggling to survive.

What’s Next?

The future is uncertain, and it’s unclear what the impact of the tariffs will be. However, one thing is clear: small businesses need support and help to navigate this challenging time.

• US Sen. Andy Kim has vowed to try and get support for small businesses like Imposta.
• Derek Gould says that every importer is going to have a mad dash to get their stuff on the water, which could create a logjam.

Conclusion

The tariffs on Chinese imports have a significant impact on small businesses, particularly those in the costume and holiday decoration industry. The uncertainty and volatility caused by the tariffs are affecting the entire economy and have long-term consequences that go beyond the immediate impact on small businesses. As the situation continues to unfold, it’s clear that small businesses need support and help to navigate this challenging time.

“I don’t have an option to buy these products domestically. I never have. Could they ultimately be produced here? I guess, but it’d be a multiyear venture.