President Donald Trump ran on a promise to boost America’s economy, but businesses across the country say his tariff regime is hurting their bottom lines.
Since announcing blanket tariffs on April 2, his plans have changed repeatedly as countries are removed from and added to the lengthy list of targets. The Tax Foundation estimated the imposed and threatened tariffs would raise $2.3 trillion in revenue over the next decade and reduce the GDP by 0.9%.
Major companies like Gap and Levi Strauss have already begun to see the fallout and are adjusting accordingly.
Many small businesses have also been forced to make difficult decisions, like raising prices and cutting their staff. One of them is Shaun Beall‘s furniture company, Tactile Audio Furniture. Based in Colorado since its founding in 2019, Beall’s company specializes in custom furniture for music lovers and audiophiles. We chatted with Beall about the tariffs’ impacts. The following transcript has been lightly edited for length and clarity.
Tell me about your business.
This started as a hobby in our backyard and with a lot of hard work it has grown into a small but successful manufacturing business that is our family livelihood.
What does the average American not understand about the concept of something being “Made in America?”
“Made in America” rarely means that something is 100% sourced and manufactured here. The reality is that we live in a global supply chain, and some things that are essential just aren’t available domestically at any price.
Also, functionally tariffs are paid by U.S. companies importing goods. We as the importer write the check to the U.S. government. It’s a tax on us plain and simple. Tariffs are not being paid by foreign governments or suppliers. Tariffs create a negative economic ripple effect for our local supply partners, our workers and our customers.
Ultimately, tariffs hurt our ability to compete, which is the very thing they are supposed to help with.
Was there a notable shift in operations before versus after the tariffs began?
While we do our best to source materials, tools and supplies locally and sustainably, the reality is that some essential items just aren’t available domestically at any price. We have seen tariffs create dramatic fluctuations in some material costs and availability. The constantly changing tariff policies have created an environment of uncertainty as well. Overall that has created a drag on our business operations, which makes us less competitive and hurts our ability to confidently invest in growth.
[DECISION POINTS: Trump Plays the Numbers Game]
When did tariffs start making an impact, and what have they affected most?
We first started seeing the effect of tariffs in April. For us, the increased cost and decreased availability of some critical materials has been the most challenging part. This has caused us to pull back a little on staffing while we see where things will land.
We have also spent more on building inventory of raw materials to help offset pricing and availability risk. This is capital that could have been better used for investing in our growth. These are funds generally directed at other local small businesses and contractors that we partner with, so there is a ripple effect happening.
You mentioned on LinkedIn that your new product line has been delayed due to tariff-related issues. What’s the impact of that?
It means we can’t move at the same speed we could have been otherwise. Not knowing if we can actually procure some critical parts at any cost makes planning a new product line very challenging. We simply can’t go to market without a more stable supply line and pricing model.
Many politicians on the Hill and President Trump argue that tariffs are meant to protect American businesses. What are they getting right and wrong?
We are not trying to be political, and we certainly would like to see policies that strengthen U.S. businesses and manufacturing, but not at the cost of making it harder for existing manufacturers to compete. It feels incredibly short-sighted and counterintuitive not to consider any impact of these policies on businesses like ours or offer any sort of protections. You can’t celebrate a more “level playing field” if the policies hurt just as much as they might eventually help.
It’s demoralizing to work this hard to build something special and have our own government actively working against our success. It’s hard to see the wisdom of these policies for today’s American businesses and consumers.
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How Tariffs Are Affecting This Colorado Small Business Owner originally appeared on usnews.com
