American small and medium-sized enterprises (SMEs) reliant on overseas manufacturing are reeling from the aftershocks of Trump's sweeping tariff hikes, with many halting orders, scrambling for alternatives, or few, in worst-case scenarios, shuttering entirely.
Ryan Hill, an American businessman who has produced men's apparel in China for 15 years, runs a fashion store in San Francisco. He described the abrupt disruption as "almost not worth the effort" to adapt in his recent interview with GDToday.
"I told our factory to finish existing orders, but I'm not gonna order anything new," Hill said, explaining that over 200% tariff on his clothing line "leaves no profit at all." His dilemma mirrors countless importers. Hill's warehouse partners report that other U.S. clients have similarly frozen purchases, signaling a sector-wide paralysis. "It's like all the importers from the U.S. have basically stopped ordering," he noted.
While multinational corporations like H&M leverage global networks to secure production, SMEs face bigger barriers. Hill emphasized the years needed to build trusted supplier relationships: "It took me 15 years to get where I am now with our Chinese factories." Relocating to countries like Vietnam or India, he argued, risks repeating the cycle if tariffs suddenly target those nations. "Who's to say Trump's gonna decide next year they're the enemy?"
The crisis is compounded by dwindling inventory. Hill warned that price surges loom once current stocks - imported under lower tariffs - run dry in "a month or two." Retailers and wholesalers remain unaware, he said, but "that's when the prices are really gonna go up."
Rebuilding U.S. manufacturing, essential to Trump's policy, faces practical hurdles. "We don't have that skilled labor," Hill stressed, citing gaps in technical expertise. "College students don't know how to use a soy machine." Even after 15 years in business, he called finding American factories "almost impossible."
Trump supporters frame tariffs as short-term pain for long-term gain, a narrative Hill acknowledged: "They accept that there's gonna be inflation while tariffs are implemented, but believe things will improve." However, he criticized the approach as economically myopic, arguing tariffs fail to address systemic issues like the Rust Belt's exclusion from the modern economy.
The administration's inconsistent moves, like rolling back electronics tariffs recognizing China's irreplaceable role in producing TVs or iPads, highlight policy contradictions. Yet for SMEs, uncertainty reigns. "We don't know what we should be doing," Hill admitted.
As Los Angeles-based fashion firms prepare to close and supply chains fracture, many more businesses would face the same issue. "They're just gonna shut their business," Hill said of peers, lamenting the futility of restarting from scratch. With no viable alternatives and skilled labor gaps unaddressed, Trump's tariff storm leaves SMEs navigating a perfect storm - with no lifeline in sight.
Reporter: Guo Zedong
Videographer: Qin Shaolong
Video editor: Qin Shaolong
Video cover: Qin Shaolong
Voiceover: Xie Hongzhou
Editor: Yuan Zixiang, James, Shen He
