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American Focus > Blog > World News > Small business hails pause on 145% China tariffs, fears what might be next
World News

Small business hails pause on 145% China tariffs, fears what might be next

Last updated: May 14, 2025 1:02 pm
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Small business hails pause on 145% China tariffs, fears what might be next
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Gail Ross, the chief operating officer of women’s apparel company Krimson Klover, is cautiously optimistic about the 90-day pause on the 145% tariffs on goods from China. While the temporary reduction in tariffs is a welcome relief, she is concerned about the uncertainty that lies ahead once the 90 days are up.

Krimson Klover had to shift a significant portion of its business to Vietnam when President Trump imposed tariffs during his first term in office. The company was originally paying 7.5% on imports from China before the tariffs were introduced.

Under the temporary agreement reached between the U.S. and China, the tariff on Chinese goods was reduced to 30%, down from 145%. This move aims to ease the trade tensions between the two countries while they negotiate a more permanent solution.

Despite the lower tariff rate, businesses like The Windy Company, a windshield wiper business, are still facing challenges. The company, which manufactures its products in China, is considering increasing orders during the lower tariff period but remains cautious about the future.

Both Krimson Klover and The Windy Company are racing against time to get their products shipped before the 90-day window ends, fearing a potential increase in tariffs. The uncertainty surrounding trade policies has forced these businesses to put expansion plans on hold until there is more clarity.

While some companies are absorbing the increased costs for now, others are feeling the impact more severely. Ross mentioned a friend who had to cease operations due to the steep tariffs imposed on Chinese imports, highlighting the challenges faced by small businesses.

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Looking ahead, Ross believes that more support and understanding from Congress are needed to help businesses navigate the turbulent trade environment. She also emphasized the importance of developing plans to revitalize industries in the U.S. to reduce dependency on imports.

As businesses and consumers brace for higher prices and increased uncertainty, the future remains uncertain. The ongoing trade tensions highlight the need for a more sustainable and balanced approach to international trade.

Published on: May 14, 2025 at 1:51 PM MDT

TAGGED:BusinessChinaFearshailsPauseSmallTariffs
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