trump tariffs

After the Trump administration raised tariffs on countries across the globe earlier this month, the bills are starting to come due, and we’re getting the first look at how this abrupt realignment to international trade will affect everyday working Americans. Interestingly, a poll in late January 2025 found that only 45% of Americans understand how tariffs work. Many incorrectly believe that the Chinese exporter pays the fee when the US imposes a tariff on China. However, in reality, when the U.S. imposes a tariff on Chinese goods, the American importer pays the tariff. The funds raised by the tariffs then go to the government, like a tax. Polls also show that those who understand how tariffs work are much less likely to support them than those who do not.

How do tariffs affect American business owners?

Sofia Ramsay, a mother who has owned a homemade jewelry business for the past 13 years, explained how the tariffs affect her small business, and it’s a practical explanation of how tariffs work. “I recently started doing a new program which is a subscription box that sends bead kits all about having a good time and celebrating friendships and bringing art into your life," she begins her video. “a lot of the materials that I provide for my subscription service are upcycled and reused just in order to keep up with trends and to keep up with supply and demand. Quite simply, I do need to import a lot of the materials.”

Ramsay adds that they have a great relationship with the factory she works with in China, but things started to become difficult a few weeks ago. It took over a month to get an expedited shipment of materials. Then she received a tariff bill from UPS. “It was a tariff bill on my import, now I'm happy to pay the price to do my business, but this is something I'm not prepared for as far as price increases,” she said. “I just don't think it's sustainable for my business to take on this level of expense.”

The cost of her tariff bill? $208 on $485 worth of goods.

That's a 43% increase in her cost of doing business, and the money went to the U.S. government. This was before the administration raised tariffs to 245%, which would have cost Ramsay $698.25.

Now that Ramsay's expenses have increased due to the tariff, does she pass it on to the customer? “I’m not willing to raise my prices, but I probably should raise them by 15-20% or so just to offset these fees,” she told Upworthy.

One of the goals of the tariff policy is to encourage Americans to source their products from U.S. companies. Or enable investors to increase manufacturing in the U.S. However, in a recent video, Ramsay explained why she can’t source her products from a U.S.-based company. The only company that does something similar is in New York City, and their products constantly change, so that she couldn’t deliver a consistent product to her customers. Further, the upcycled beads in New York originally come from overseas; they’ve just been handed around through separate transactions.

“I have to just be at the whims and fancies of whatever is available in this warehouse. It would be like if I had a fashion design company, if I was a clothing brand, and then I just switched to being a thrift store or vintage store or reseller, that would kinda pull the rug out from under my customer base,” she said.

Even though Ramsay is in a bind, being charged a hefty price for importing her products and without an option to source them from within the country, she’s optimistic that things may change. “I believe [the tariffs] are temporary and just posturing on the part of this administration. They have no plans to invest in domestic manufacturing,” she told Upworthy.