President Donald Trump's tariffs on China, Canada, and Mexico, presented as a way to boost American businesses, are already having a negative impact on small businesses manufacturing in the US. The tariffs, which were announced and then paused, are causing costs to rise for these businesses, which will ultimately force them to raise prices for consumers.

Valerie Schafer Franklin, co-owner of Walnut Studiolo, a family-run leather goods company based in Oregon, has already noticed the effects of the tariffs. Her business, which specializes in handmade leather goods, relies on a range of components, including leather, thread, magnets, and specialty screws. While the company sources its leather from a fifth-generation tannery in St. Louis, Missouri, it relies on imports for other components. The recent 20% price hike from a supplier of specialty screws has Schafer Franklin worried about the future of her business.

The tariffs are having a ripple effect throughout the supply chain, causing costs to rise for businesses of all sizes. This is because modern manufacturing relies on a global, interconnected supply chain, and when one part of the chain becomes more expensive, the cost is passed down to the consumer. Schafer Franklin's experience is not unique; many small businesses are feeling the pressure of rising costs, which will ultimately affect their ability to compete with larger companies.

The Walnut Studiolo example highlights the complexity of modern manufacturing and the flaws in the "Made in America" argument. While the company is based in the US and manufactures its products domestically, it relies on imports for certain components. In fact, Schafer Franklin was unable to find a US-based supplier for half- and quarter-sized playing cards, a crucial component of the company's travel cribbage board, and had to source them from China.

The tariffs have caused confusion and stress for businesses selling products online, with many turning to dropshipping forums for guidance. Etsy, a popular platform for small businesses, has notified sellers that it is "continuing to monitor the situation" but has offered little concrete guidance. The lack of clarity has left many businesses feeling uncertain about their future.

The impact of the tariffs on small businesses is particularly concerning, as they are often the backbone of local economies. The uncertainty surrounding the tariffs has made it difficult for businesses like Walnut Studiolo to plan for the future, and the rising costs will ultimately affect their ability to compete with larger companies.

In conclusion, the tariffs announced by President Trump are having a significant impact on small businesses manufacturing in the US. Despite being touted as a way to boost American businesses, the tariffs are causing costs to rise, which will ultimately force businesses to raise prices for consumers. The complexity of modern manufacturing and the interconnected nature of the supply chain mean that the effects of the tariffs will be felt far beyond the businesses directly affected.