CEO’s ‘finish of days’ warning as Trump’s tariff shock on China sparks panic among US importers

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American importers are discovering it onerous to deal with a wave of new tariffs on Chinese items introduced by US President Donald Trump, with some warning of dire penalties.
Rick Woldenberg, CEO of Illinois-based instructional toy firm Learning Resources, referred to as the state of affairs “the end of days” after Trump abruptly raised tariffs on Chinese imports to 145 per cent, up from an already steep 54 per cent. The transfer, meant to punish China for alleged unfair commerce practices, has blindsided enterprise house owners.
“When he announced a 20 per cent tariff, I made a plan to survive 40 per cent, and I thought I was being clever,” mentioned Woldenberg. “I never imagined 145 per cent.”
The influence on Learning Resources — a third-generation family-run enterprise that has manufactured toys in China for many years — might be devastating. Woldenberg estimates the corporate’s tariff invoice will soar from $2.3 million in 2024 to over $100 million in 2025. “I wish I had $100 million,” he mentioned. “Honest to God, it feels like the end of days.”
Many American firms have lengthy depended on Chinese manufacturing for inexpensive client merchandise. China nonetheless provides the bulk of key gadgets, together with toys, child carriages, coloring books, and vacation decorations. But Trump’s tariffs are threatening to upend these provide chains in a single day.
The sudden hike has additionally compelled companies like MGA Entertainment — the maker of fashionable Bratz and LOL dolls — to boost costs and contemplate slashing manufacturing. Founder Isaac Larian mentioned his firm sources 65 per cent of merchandise from China and warned that costs for some toys might almost triple.
Even firms producing items within the US aren’t immune. Parts for American-made toys nonetheless come from China, and the tariffs are driving up prices throughout the board.
Business leaders say it isn’t simply the dimensions of the tariffs, however the unpredictability with which they’re being rolled out that is hurting them probably the most. “No business can run on uncertainty,” Larian mentioned.
Marc Rosenberg, CEO of The Edge Desk, has halted manufacturing of a brand new ergonomic chair deliberate for China and is now contemplating promoting in Europe as an alternative, the place he will not face Trump’s tariffs. “They didn’t have the skilled labor here, and they didn’t have the desire to do it,” he mentioned, referring to US producers.
Woldenberg, whose firm employs 90 per cent of its workers within the US, mentioned shifting manufacturing stateside merely is not possible. “There is no idle manufacturing hub standing ready for us,” he mentioned.
Industry specialists warn that the ripple results might be extreme, with potential layoffs, product shortages, and vital inflation. The nationwide retail federation has described the size of tariffs as “apocalyptic.”
Yale estimates the tariffs might shave greater than 1 proportion level off US financial development by 2025, whereas client sentiment surveys present Americans already bracing for larger costs.
“This could mark the end of an era of cheap consumer goods in America,” mentioned provide chain skilled Joe Jurken. “We got addicted to cheap Chinese goods — now the hangover’s here.”