US small businesses tethered to China sell off inventory, cut jobs amid escalating trade war: sources

New York Post - Apr 14th, 2025
Open on New York Post

US small businesses with strong ties to China are grappling with survival as the trade war between the US and China escalates, leading to increased tariffs. The Trump administration has raised tariffs on Chinese goods to 145%, prompting Beijing to retaliate with a 125% tax on US imports. Small businesses, lacking the resources to move manufacturing like their larger counterparts, face dire consequences. Companies such as Baby Paper and Artistic Toys and Promotions are contemplating shutting down and cutting jobs due to unsustainable tariff costs.

The broader context reveals that the US toy industry, reliant on China for 80% of its production, is struggling to adapt quickly. Companies like RH and David’s Bridal are attempting to shift manufacturing out of China, though the process is time-consuming. This situation highlights the challenges of diversifying supply chains amid geopolitical tensions. The implications of this trade war are significant, as businesses were warned of potential disruptions years ago, yet many still find themselves unprepared. The ongoing tension underscores the complexity and interconnectedness of global trade, affecting industries from apparel to home furnishings.

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RATING

5.2
Moderately Fair
Read with skepticism

The article provides a timely and relevant exploration of the impacts of the U.S.-China trade war on small businesses, making it a topic of substantial public interest. It effectively uses personal stories and industry data to illustrate the challenges faced by business owners, enhancing its readability and engagement potential.

However, the story's accuracy and balance are somewhat compromised by a lack of diverse sources and perspectives. The article primarily presents the negative impacts of the trade war without exploring potential benefits or alternative viewpoints, which limits its depth and fairness. Additionally, some claims, particularly regarding tariff rates, require further verification and source support.

Overall, while the article addresses important issues and captures reader attention, it could benefit from more comprehensive sourcing and a balanced presentation of perspectives to enhance its credibility and impact.

RATING DETAILS

6
Accuracy

The article presents several factual claims that align with known data about the U.S.-China trade war, such as the impact of tariffs on small businesses and industry reliance on Chinese manufacturing. However, some figures, like the 145% and 125% tariffs, seem exaggerated compared to typical tariff rates, which usually range from 10% to 25% in real cases. Specific business impacts, such as the financial strain on Baby Paper and Artistic Toys, are plausible, but they require verification from independent sources to confirm the exact financial figures and operational decisions.

The article accurately identifies industry dependencies, noting that the U.S. toy industry relies heavily on China, which is consistent with industry reports. However, the claim that RH and Five Below are moving production out of China needs more precise data and source citations to verify the extent and timeline of these shifts. Overall, while the story captures the essence of the trade war's impact, it lacks sufficient source corroboration and precision in some claims.

5
Balance

The article predominantly highlights the negative impacts of the trade war on U.S. small businesses, which may skew the reader's perception toward a particular viewpoint. While it includes quotes from business owners who are struggling, it lacks perspectives from policymakers, economists, or Chinese business representatives, which could provide a more rounded view of the situation.

The story does not explore potential benefits or long-term strategic advantages that might be considered by some stakeholders in the U.S. or the global economy. This omission suggests a lack of balance in presenting the broader implications of the trade war. Including a wider range of viewpoints could enhance the article's depth and fairness.

7
Clarity

The article is generally clear in its language and structure, making it accessible to a broad audience. It effectively uses quotes from business leaders to illustrate the challenges faced by small businesses, which helps convey the human impact of the trade war.

However, the article could benefit from a more organized presentation of facts and figures, as the current structure sometimes mixes anecdotal evidence with broader industry data without clear transitions. A more systematic approach to presenting information would enhance clarity and comprehension for readers.

4
Source quality

The article cites several business leaders and executives, which provides some level of authority and insight into the impacts of the trade war. However, it lacks a diverse range of sources, such as economists, trade experts, or government officials, who could offer additional context and validation of the claims made.

There is no indication of direct quotes from official statements or documents regarding the tariff rates and policies, which undermines the reliability of some key points. The reliance on a limited number of business perspectives without corroborating these with independent or expert sources affects the overall credibility of the reporting.

4
Transparency

The article does not clearly disclose the methodology behind its claims, such as how the tariff percentages were calculated or the selection process for the businesses featured. This lack of transparency makes it difficult for readers to assess the validity of the information presented.

Additionally, the story does not reveal any potential conflicts of interest or biases that might affect the reporting, such as the author's relationship with the business leaders quoted or any affiliations with industry groups. Greater transparency in these areas would help readers better understand the basis for the article's claims.

Sources

  1. https://www.foxbusiness.com/retail/small-business-owners-speak-out-about-effects-trump-tariffs-unsustainable
  2. http://acecomments.mu.nu/?post=360367http%3A%2F%2Facecomments.mu.nu%2F%3Fpost%3D360367
  3. https://www.foxbusiness.com/politics/heres-when-american-consumers-businesses-feel-sting-145-china-tariffs
  4. http://globalwarmingplanet.net/Default
  5. http://acecomments.mu.nu/?post=386703%2F