Trump's Trade War: Small U.S. Businesses Struggle with Tariff Impacts from Vinyl to Fish Sauce

USBusiness04/17 02:59
Trump's Trade War: Small U.S. Businesses Struggle with Tariff Impacts from Vinyl to Fish Sauce

President Trump's tariffs are impacting U.S. small businesses, causing confusion and cost increases. The vinyl record industry faces rising costs due to tariffs on imported materials. Son Fish Sauce in California absorbs costs to maintain community ties, while a D.C. baby store raises stroller prices by $300 due to Chinese tariffs. Small businesses, unlike large corporations, struggle to manage these changes, with many unable to absorb costs or lobby for exemptions. The erratic tariff rollout adds to the uncertainty, posing existential threats to these enterprises.

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04/17 02:59

Trump's Trade War: Small U.S. Businesses Struggle with Tariff Impacts from Vinyl to Fish Sauce

President Trump's tariffs are impacting U.S. small businesses, causing confusion and cost increases. The vinyl record industry faces rising costs due to tariffs on imported materials. Son Fish Sauce in California absorbs costs to maintain community ties, while a D.C. baby store raises stroller prices by $300 due to Chinese tariffs. Small businesses, unlike large corporations, struggle to manage these changes, with many unable to absorb costs or lobby for exemptions. The erratic tariff rollout adds to the uncertainty, posing existential threats to these enterprises.

Vinyl Record Industry: Pressed by Policy

The vinyl record industry, which has seen a renaissance in recent years, is now facing a new challenge: tariffs on imported raw materials. While finished vinyl records are currently exempt from tariffs under the Berman Amendment — a 1988 law that protects the free flow of informational materials — the components used in domestic manufacturing are not.

Michael Greig Thomas, director of Echo Base, a vinyl manufacturer in Athens, Georgia, explained that U.S.-based producers rely heavily on imported materials like polyvinyl chloride (PVC) from Thailand, aluminum lacquers from Japan, and paper products from Canada. With Thailand facing a proposed 36% tariff and Japan already hit with new duties, the cost of producing records domestically is rising sharply.

“Factories are struggling,” said Eric Mueller, owner of Pirates Press, a punk rock label in the Bay Area. “If the cost of records goes up, it’s not going to help anybody.” Mueller noted that retail prices for new vinyl records have already climbed from $15–$25 to $30–$40 in recent years, and further increases could alienate consumers.

Even more troubling is the uncertainty. “The volatility is insane,” Mueller said. “We had a couple dozen shipments leave in the past few days, and we’re trying to figure out what we're supposed to bill people!”

While some U.S. labels are exploring loopholes — such as classifying records as “informational material” to avoid tariffs — domestic manufacturers have no such escape. Specialized equipment, often sourced from Asia or Europe, is also subject to tariffs, making repairs and replacements more expensive.

Son Fish Sauce: People Over Profit

In Southern California, Son Fish Sauce, a small-batch, traditionally fermented fish sauce company founded by Vietnamese American couple Danny and Albee Tran, is taking a different approach. Despite a 10% tariff on imports from Vietnam — down from an initially proposed 46% — the company has pledged not to raise prices.

“Fish sauce is more than a product,” said Danny Tran. “It’s a staple in every Vietnamese household — a symbol of home for Asian Americans. We can’t let price volatility break that connection.”

The company, which supplies retailers like Whole Foods and 99 Ranch, has chosen to absorb the added costs. “We may not have the deep pockets of large corporations,” said Albee Tran, “but we’re grounded in something deeper — people over profit.”

Son Fish Sauce’s decision has earned praise from both customers and investors. Benny Luo, CEO of NextShark Ventures, which backs the company, called it “a business rooted in quality, tradition and community, while navigating today’s economic landscape with integrity.”

Baby Retailers: A $300 Price Hike for Strollers

For Elizabeth Mahon, owner of Three Littles, a baby goods store in Washington, D.C., the tariffs have forced difficult decisions. With many of her products manufactured in China, Mahon has had to raise prices significantly — including a $300 increase on the popular UPPAbaby Vista stroller, which now retails for $1,199, up from $899.

“Some things are going up 20%, some 40%,” Mahon said. “But 30% is, I would say, the average.”

Mahon said she’s received daily emails from vendors announcing price hikes or the end of wholesale programs altogether. “There are going to be many families who just cannot afford a stroller or a car seat for their child, period,” she warned.

The impact is not just financial. Mahon noted that panic buying has set in, with customers purchasing car seats for children they haven’t yet had, fearing future price increases or shortages. “We’ve had to spend money we didn’t really have to stock up on inventory,” she said.

Even more concerning is the potential for safety risks. As a certified child passenger safety technician, Mahon emphasized that car seats should not be bought secondhand. “There is no way to prove that a used car seat hasn’t been in a crash,” she said.

A Disproportionate Burden on Small Businesses

While large corporations may have the resources to lobby for exemptions or absorb costs, small businesses are left to navigate the chaos alone. The Consumer Technology Association noted that 80% of its 1,200 member companies are small businesses or startups, many of which are struggling to pay the tariffs or pass the costs onto customers without losing their market.

“There’s a really big concern that our voices are not going to be heard,” said Thomas of Echo Base. “Not everyone knows the most expedient way to speak to their local representative and get things moving up the chain.”

The Trump administration’s erratic rollout of tariffs — including a 125% levy on Chinese imports and a 10% blanket tariff on most other countries — has only added to the confusion. For many small businesses, the lack of clarity is as damaging as the tariffs themselves.

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