Some Ga. small businesses remain uncertain despite China tariff deal
ATLANTA, Ga. - The whiplash continues for Georgia small businesses dealing with federal tariffs, especially the ones that source their products or materials from China.
At least, some say, the rates were lowered this time.
In the latest round of back-and-forth over trade, the White House agreed to lower the rate on Chinese goods from 145% to 30% for the next three months, a much more palatable duty for many small business owners.
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But the constant changing of policy leaves many of them uncertain. Some desperately want to place orders and take advantage of the lower rate, but are afraid it will change again before their products enter the U.S.
Goods are tariffed when they reach American shores, and businesses are hit with the cost only then.
“There’s no guarantee that’s not going to change in 90 days and it’s going to take me at least 90 days to produce my products,” said Angela Hawkins, owner of BamBlu, a bamboo bed sheet and clothing company based in Atlanta.
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Atlanta News First talked to Hawkins back in early April, when U.S. tariffs had just crested 100% for Chinese goods. Even with the relief announced Monday, Hawkins is still wary to start placing orders again, uncertain because of the recent whiplash.
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“People would think that because the tariffs have come down, that it would give me some type of relief and I would feel better about moving forward but honestly, it doesn’t,” she said. “I would say it’s more like trauma fear.”
While markets responded well to Monday’s announcement of a draw back, it’s business owners and investors who seem to be proceeding trepidatiously.
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Tom Smith, a labor and logistics expert with Emory University, said consistency is the antidote to uncertainty, and there hasn’t been a lot of consistency in the White House’s approach to trade policy.
“Inability to plan is probably one of the biggest impediments for businesses going forward,” Smooth said. “I don’t think it’s doing the istration any good by putting a policy out there and then pausing it, and then not pausing it, and then pausing it again. If they just tell everybody what the policy is then businesses can go about doing business.”
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Hawkins, who says many of her colleagues share the same fear-of-change mentality on tariffs, says she wants lawmakers to just be open with small business owners so they know how to prepare for the future.
“If we have the certainty, then we can plan, we can strategize,” she said.
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