Mass. small business concerned about tariff impact, "doubles my cost"
As the United States hits China with 145% tariffs on goods, local companies are bracing for the impact. One business owner may have to choose whether he can continue to produce some of his products at all.
"Guess who is paying the tariffs when a shipment or container lands in the U.S.? I am writing the check to the government for those increased tariffs. No one else is absorbing the cost, but us small business owners," said Alex Yale, owner of Flip-It Cap and Uncle Todd's cleaning products.
Yale bought Flip-It Cap, a company that was featured on the hit show Shark Tank. The company makes a special bottle flow cap that allows consumers to store bottles in a way that let's them get all of the product from a bottle.
Costs doubled for small business
"Flip-It Cap we make 100% of those goods in China. It's just a factor of cost and efficiency in terms of manufacturing. That gets hit currently with 145% tariffs. Just to put that into context, essentially doubles my cost," said Yale. "On Amazon there are a lot of Chinese sellers selling products on Amazon, and we are directly competing with them."
Most of his Uncle Todd's cleaning products are made in the United States as it makes sense for them from an economics and logistical standpoint. Yale says when he can, he would rather produce his products in the U.S. Two of his cleaning products are made in China. They are dissolvable cleaning sheets for toilet and floor cleaners.
"To date, there is virtually no manufacturing in the United States that can make these dissolvable sheets," explains Yale. "Right now, it's either I offer this made in China, or I can't offer it or sell it to customers at all."
His options are to absorb the lofty costs, double the price for the customer, find alternate manufacturing options, or to stop selling the products at all. If he were to stop production, it would also hurt a host of Americans who help to get his products to market.
"We are talking about graphic designers, accountants, attorneys, trucking companies and freight," said Yale.
