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Tariffs

Escalating US Tariffs Disrupt Global Supply Chains and Threaten Small Businesses

Strategic Insights

— 2 min read

As the 2025 Las Vegas Market summer show drew to a close, exhibitors and manufacturers voiced growing concern over the impact of U.S. tariffs on global supply chains and small businesses. The escalating tariff hikes, proposed by President Donald Trump, have disrupted long-standing supply chains, threatening the viability of small and family-run businesses already operating on thin margins. Exhibitors warned that the widening scope and scale of duties could destabilize the industry, forcing businesses to rethink their sourcing strategies.

Key Takeaways:

  • Small and family-run businesses are particularly vulnerable to the impact of U.S. tariffs, with many struggling to absorb the added financial burden.
  • Companies are adopting new strategies to manage the added financial burden, such as splitting larger shipments into multiple parcels to remain under the 750 U.S. dollars threshold for U.S. tariffs.
  • Firms reliant on unique materials and traditional craftsmanship, such as Legend Accents and Lily's Living, are facing significant challenges, with relocation or supply diversification not being a viable solution.
  • The broader impact of tariff hikes has already begun to reshape the industry, with legacy U.S. furniture brands like Howard Miller Company and Hekman announcing closure due to unsustainable costs for materials and components.
  • Exhibitors and manufacturers are calling for the trade environment to stabilize, with many closely monitoring developments ahead of the new tariff rates scheduled to take effect on Aug. 1.
  • Verona Pierre, owner of a marble home decor business based in Dallas, Texas, said her friends are struggling due to the impact of U.S. tariffs on their merchandise from China and other parts of Asia.
  • Satish Bawa, co-founder of Trovelore, a Phoenix-based handmade jewelry brand, said the company's India-produced accessories have already been hit with a 10 percent tariff increase, with a potential blow to their bottom line forcing them to absorb 50 percent of the added cost.
  • Yalda Badher, a sales representative of Dutch homewares brand Doing Goods, said the company splits larger shipments into multiple parcels to remain under the 750 U.S. dollars threshold for U.S. tariffs, which is now a routine practice due to the current tariff environment.
  • Tom Jung of Legend Accents, a high-end porcelain brand based in Carson, California, said the company's ceramics are produced exclusively in Jingdezhen, China, which cannot be replicated elsewhere.
  • Lily Quan, CEO and designer of Lily's Living, a Gardena-based company specializing in traditional Chinese wooden and ceramic furniture, said the brand depends on rare, aged wood from northern China and highly specialized craftsmanship that cannot be replicated elsewhere.
  • Legacy U.S. furniture brands like Howard Miller Company and Hekman have announced closure due to unsustainable costs for materials and components.

Statistics:

  • U.S. tariffs on Chinese goods have increased by 35 percent, with many firms struggling to absorb the added financial burden.
  • 50 percent of the added cost is absorbed by small and family-run businesses, with the remaining 50 percent passed on to customers.
  • The current tariff environment has forced companies to adopt new strategies, such as splitting larger shipments into multiple parcels to remain under the 750 U.S. dollars threshold for U.S. tariffs.

Sources:

  • Xinhua writers Tan Jingjing, Huang Heng
  • Xinhua news agency
  • Las Vegas Market summer show
  • Doing Goods
  • Legend Accents
  • Lily's Living
  • Phillips Collection

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