A Tonka toy is displayed at a store in New York City, U.S., April 9, 2025. REUTERS/Jeenah Moon/File Photo
U.S. Businesses Report Rising Costs and Uncertainty Under Trump Tariff Regime
April 13, 2025 — WASHINGTON — A range of U.S. business owners and managers are reporting significant increases in costs, disrupted supply chains, and heightened uncertainty due to President Donald Trump’s evolving tariff policies. Despite a 90-day pause on some import taxes announced this week, many firms remain deeply concerned about long-term implications.
Among the businesses affected are a toy store managing unexpected weekly price hikes, a health and beauty product manufacturer projecting millions in additional costs, and a performing arts venue grappling with a six-figure budget shortfall due to retroactive tariff application.
Mixed Signals: Temporary Relief Amid Continued Tariff Expansion
The administration’s temporary suspension of new tariffs on dozens of countries was accompanied by a sharp escalation in duties on Chinese imports, with cumulative rates reaching up to 145% when earlier levies are included. Imports from most other countries will remain subject to a 10% tariff for the next 90 days, while tariffs on goods from Canada and Mexico not covered under existing trade agreements remain at 25%.
The policy changes, often made abruptly, have created a volatile environment for businesses relying on global supply chains.
“We’re constantly dealing with the uncertainty of the future and of our future supply chains,” said Steve Shriver, CEO of Eco Lips, a Cedar Rapids, Iowa-based organic health and beauty product company with $30 million in annual sales. Shriver said he has notified 300 private-label clients about imminent price increases and potential delivery delays, despite the temporary tariff pause.
He estimates his cost of goods could rise by $5 million over the next 12 months—on top of a regular $10 million annual expenditure—due to tariffs on key imported ingredients like vanilla, coconut oil, and cacao.
Supply Chain Adjustments and Consumer Impact
Several businesses have already begun raising prices, canceling purchase orders, delaying hiring, and reassessing expansion plans in response to the uncertain trade environment.
Paul Kusler, owner of Into the Wind, a toy and kite store in Boulder, Colorado, with $2.5 million in annual revenue, said the tariffs are a serious threat to his business, which sources most of its inventory from China. Recent tariff announcements led to immediate price increases on items already received, with hikes ranging from 7% to 10%.
Kusler said he can absorb only about 3% in additional costs, adding, “People aren’t going to buy toys if they are worried about prices rising for food and other staples.”
Emily Ley, owner of Simplified, a Pensacola, Florida-based manufacturer of premium office planners, has already paid over $1 million in trade taxes since Trump first introduced tariffs in 2017. She expects to pay nearly the same amount again over the next 12 months if current rates remain.
Despite attempts to shift production to the U.S., Ley said domestic manufacturing was not viable for her business model. “This could put us under, put us out of business,” she stated. Ley is now suing the federal government, challenging the legality of the tariffs under current statutory authority.
Unexpected Budget Strains in Public Institutions
Public institutions are also feeling the burden of Trump’s trade policy. Aisha Ahmad-Post, Executive Director of the Newman Center for the Performing Arts at the University of Denver, had ordered nearly 1,000 chairs for the concert hall from Canadian supplier Ducharme at a cost of approximately $560,000.
In March, she received notice that her order would now be subject to a 25% tariff, adding $140,000 to the total cost. With chairs already in production and a tight renovation schedule planned for July, Ahmad-Post said the center is struggling to find funds to cover the unexpected expense.
“We’re stuck trying to figure out how we’ll pay for this,” she said, noting the institution is still recovering financially from the COVID-19 pandemic.
Business Leaders Call for Policy Clarity
The dozen business leaders interviewed by Reuters expressed a shared concern: the unpredictability of trade policy under the current administration. While the 90-day pause may provide momentary relief, the broader sentiment is one of caution and financial strain as firms adjust to shifting import costs and global sourcing challenges.
Many remain uncertain whether further relief or additional tariffs will follow, making long-term planning difficult. With higher costs already filtering through supply chains and onto consumers, the broader economic effects of the tariff regime continue to unfold.
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