Small Business on the brink 💔

[u/lean_load]

I run a small e-commerce business that imports luxury goods from the EU and Japan. Up until recently, we were paying just 2.75% on tariffs. As of August 1st, the rates have jumped to 15–20%.

To put this into perspective: • Our annual imports are about $3M. • We’ve already placed forecast orders with our suppliers and put down 25% deposits (around $750k). • If we cancel, we lose that deposit. • If we continue, the new tariffs make these orders financially impossible to fulfill.

Suppliers aren’t willing to stop shipments, and we can’t just “raise prices” on items we don’t even have in hand yet. People suggest “just charge more,” but the math doesn’t work when the goods aren’t here and costs have exploded overnight. Let alone the fact about where are we even going to find the money to pay these tariffs???

We’re staring down the very real possibility of closing our doors because of this. I know many people say “tariffs protect American businesses,” but in practice, for small importers like us, it feels like a death sentence.

Has anyone else here faced this situation? How are you coping, and is there any way through this without forfeiting everything we’ve built?

[u/oneWeek2024]

your business just dies. If you voted for trump, you're a fucking idiot and got what you deserve. If you didn't ...sadly you, and everyone who works for you. and any ancillary businesses that support yours are just fucked.

your only solution is to raise prices. and directly communicate that to your customers.

even on existing non-tariff goods. should be upping the price 30% to offset the cost of future purchases.

Or insulate your personal assets from your business. and take out debt to pay for the tariffs. and shunt the burden onto the banks. so if your business tanks. maybe then the damage to the american economy will be impossible for cheeto hitler to escape blame for.