I own a small business, now about 11 years old. We use glass bottles and the majority of glass bottle manufacturers are in China. I searched in the U.S. and found only two large glass manufacturers, and both made primarily jars for ketchup and barbecue sauce. All others offering glass bottles were wholesalers ordering from China or other offshore sources. I placed an order three months ago for a container of bottles costing $20,000. It will hit port in about two weeks. Before customs will release my goods to me, due to the 145 percent tariff on Chinese goods, I will have to pay the U.S. government over $30,000 tariff and fees. So, my $20,000 bottles now cost over $50,000. This expense sudden and with no way to plan for it.
Other small businesses are in the same problem. I don’t have a sudden expense like this in my budget. I may not be able to claim the goods. If I do not pay the tariff and claim my goods promptly, U.S Customs will begin charging me storage fees and may confiscate my order if left too long. I have never before been put in this position. Prior to 2016, my costs per order were about $1,500. Trumps’ initial tariff on China in the first term, 25 percent, drove the cost to over $5,000 per shipment. Now it exceeds $30,000. Bottles cannot be obtained in the U.S. If a glass factory is built, it will take three years or more and U.S. labor, equipment and raw materials costs will be 4 to 5 times higher, perhaps as much or more than the tariff.
I wonder what Walmart will do; 75 percent of their stock comes from China or Southeast Asia. No more $9 T-shirts or $4.99 toys? A lot of small businesses like mine may just close.
William Beckett is a resident of the Village of Sanibel.