The Japan Times - US small businesses slam Trump tariffs as legal fight proceeds

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US small businesses slam Trump tariffs as legal fight proceeds
US small businesses slam Trump tariffs as legal fight proceeds / Photo: Beiyi SEOW - AFP

US small businesses slam Trump tariffs as legal fight proceeds

When businessman Travis McMaster shifted more manufacturing of his products out of China, and into India, he had sought to avoid growing tensions between Washington and Beijing.

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"But I kind of outsmarted myself this time," said McMaster, general manager at travel goods brand Cocoon USA.

Since August, US tariffs of 50 percent took effect on many Indian products, exceeding the additional 30-percent level imposed on Chinese goods this year.

He was among about 100 small business owners gathered in Washington on Thursday to detail how wide-ranging tariffs imposed by US President Donald Trump recently have impacted their livelihoods.

Many spoke outside the Supreme Court, which is due to hear oral arguments on the legality of Trump's global duties on November 5.

Since returning to the presidency in January, Trump has imposed sweeping 10-percent duties on almost all trading partners, alongside steeper levels on dozens of economies like the European Union and Vietnam.

But many small US firms say they have struggled to keep up with Trump's fast-changing policies.

"We need to put a stop to these quick changes. Our business isn't run on a whim, and our country shouldn't (be) either," McMaster, whose firm is based in Washington state, told reporters.

The US Court of Appeals for the Federal Circuit in August affirmed a lower court's finding that Trump had exceeded his authority in tapping emergency economic powers to impose sweeping duties on goods from various countries.

But the judges allowed these levies to stay in place through mid-October, allowing Trump to take the fight to the Supreme Court.

Small businesses said Thursday that in the meantime, they are feeling the pinch.

Michael Buechli, who sells curries and sauces from Thailand, said: "The tariffs that we have to pay now make it basically impossible to continue the business."

Buechli has stopped ordering new products as tariffs have consumed his profit margins, and expects to go out of business if the situation persists.

Tiffany Williams, who runs a luggage store in Texas, called for more predictability in US trade policy.

"We've been asked to weather the short-term pain for the long-term gain," she said. "But I've just had a hard time seeing exactly what the long term looks like."

K.Abe--JT