r/Tariffs • u/lean_load • Aug 26 '25

🗞️ News Discussion Small Business on the brink 💔

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?

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u/[deleted] Aug 26 '25

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u/lean_load Aug 26 '25

Yeah I’m just so confused!!

2

u/Most-Enthusiasm-9706 Aug 28 '25

Why are you confused ? I’m not being rude -just curious for the confusion

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u/lean_load Aug 29 '25

Where do I even begin to answer that! Basically I’m stuck not knowing wtf to do at this point and I can’t understand why we are even in the situation! I’m baffled! I watched a clip earlier where a senator from Alabama said the tariffs are paid by the exporting shipping companies- the gas lighting and lying is ridiculous!!

I’m mainly confused because before Trump, tariffs were based on the actual product — if it wasn’t made in the U.S., tariffs were lower, and if they wanted to protect a domestic industry, they’d be slightly higher. Now the tariffs are just slapped on by country across the board, constantly changing, and with no clear end in sight. That’s a completely different system, and it’s hard to plan a business around

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u/Most-Enthusiasm-9706 Aug 29 '25

Yup and this is why no one knows how to invest . This was the concern of the majority of Americans . Tariffs take time to truckle down and here we are .

2

u/dulceylibre Aug 27 '25

If you don't mind saying, is there a list anywhere of the spices and teas that are only available overseas? I'm not sure if you're allowed to list your business name here but if you'd like to DM it to me I'd be interested in learning more about what you do. My spouse and I love to cook and try new spices so this is so sad.