Trump's tariffs threaten toy businesses with bankruptcy risks
The owner of a toy manufacturing company in the USA, who previously paid $26,000 in tariffs, must now pay $346,000 due to Donald Trump's decisions regarding importing goods from China. "I'm afraid my employees won't make it through, real jobs are on the line and at risk," admitted Casey Ames in an interview with the "New York Post."
Donald Trump's tariffs are causing reactions around the world, but the first "horror bills" for the economic consequences of the new U.S. administration are being footed by Americans themselves. Local media recount the story of an entrepreneur from Boise, Idaho. The sensory toy manufacturer is facing the potential unprofitability of his entire business.
USA: Entrepreneurs in a bind after Trump's tariffs
Overnight, and amid the escalating tariff war between the USA and China, Casey Ames is required to pay not $26,000, but $346,000 in tariffs for the year. As he explained to the "NYP," the new tariffs may soon force him to shut down half of his operations.
"Can’t pivot that quickly," he wrote on platform X, emphasizing that production in the USA will become unprofitable. The increase in tariffs means that one of his best-selling products, the Sensory Swing, will now incur a tariff of $17 per piece.
In a post on platform X, Ames stated that he has already decided not to ship the toys currently being produced. He pointed out that this decision will also affect transportation and advertising partners. "For the US economy, I'm tiny potatoes, but at least a small example of what companies affected by tariffs have to deal with and are doing," the businessman emphasized. In another post, he noted that with the halt in supplies from China, within 90 to at most 120 days, there will be a shortage of toys, which are vital for his business.
The tariff increase affects not only Ames. Other entrepreneurs, like one of his acquaintances in the board game industry, also predict the risk of bankruptcy. "Trump’s tariffs will decimate small toy/game businesses," wrote Hasan Hasmani. He admits that for his business, after the tariff increases, about $400,000 will be due in tariffs alone over the year. "Most [companies in the industry - ed.] won't survive the year," predicts the New York entrepreneur.
Ames is hoping for an exemption for small businesses or the possibility to defer payments, but his optimism is fading each day. "The one silver lining is that I always thought if my business failed it would be my fault. If we fail now it certainly won't be my fault," he added.
Ames's story has also resonated on the conservative television channel Fox News. "We think that China is gonna have to pay for it. A special needs toy importer-- when the tariff went into effect, his tariff bill went from $26,000 at midnight to $346,000. And that's money that's got to have to come out of his pocket... They think foreign countries have to pay the tariff, that's not true. Tariffs are being paid by Americans," viewers could hear regarding the total 104% tariffs imposed on goods from China.
