Trump Tariffs are beginning to affect consumers and small businesses directly through increased costs, according to individuals and companies providing evidence of unexpected charges. While the administration has stated tariffs protect domestic industries, those receiving imported goods report paying higher prices.
One example involves Sandy Alonso, who sought to replace a wheelchair made in China. After ordering the chair through a freight forwarder in Canada, Ms. Alonso faced a 145% customs fee on anything from China upon the product crossing the border into the U.S. The additional charges raised the cost of her wheelchair by nearly $3,500.
Some small businesses are opting for transparency with customers about the price increases. Kimberly Drennan, CEO of HiveTech Solutions in Colorado, shared screenshots showing how the starting price of one of her company's container boxes from China increased significantly. Ms. Drennan stated on her website and publicly that tariffs function as a tax borne by the importer, not the foreign supplier. The administration criticized Amazon previously when a unit reportedly considered showing customers the cost of tariffs, though Amazon has since said it would not list these charges.
Marc Bowker, owner of Alter Ego Comics in Ohio, noted a sharp reduction in his profit margin due to the higher costs imposed on imported goods like collector figurines from China. Mr. Bowker's Chinese manufacturer absorbed most of the 145% U.S. tariff, but Mr. Bowker still faced elevated expenses, absorbing about two-thirds himself while asking customers to pay 6% more. The complexity of global supply chains means finding U.S. alternatives for production could take years, time many small businesses may not have.
In Fairborn, Ohio, Cherish Harrell Brooks, proprietor of The Secret Chamber House of Oddities and Artwork, encountered unexpected tariff costs after ordering items from the United Kingdom. Despite information suggesting a freeze on UK tariffs, Ms. Brooks received a UPS bill of $1,036 on an initial order valued at $689. Efforts to resolve the issue with the shipping company were unsuccessful.
The experience of Ms. Brooks highlights the complexity of determining a product's true origin when components, packaging, and dyes may come from various countries. This complicates a straightforward "buy American" approach, which some have suggested as a solution to avoid tariffs. The ability to source every part domestically is often not feasible for small businesses.
Adding to the cost burden for consumers and businesses, several states have clarified that the tariff portion of an imported product's price is subject to sales tax. California, Illinois, and Washington have released guidance confirming that these costs are taxed, whether listed separately or embedded in the final price. The Illinois Department of Revenue letter addressed this point, with limited exceptions for importers who are also the final users.
Small business owners like Mr. Bowker face uncertainty ahead of ordering for seasons such as the holidays, unsure of future costs or whether their international suppliers will remain in business by the end of the year. Ms. Brooks stated that, as a nation, worry is warranted given the economic fragility many businesses still experience.
