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Tariffs may sound simple on paper, but they unleash a tangle of costs for small businesses
Yahoo Financeยท 2025-10-22 08:00
Core Insights - The recent removal of the de minimis exemption by the US has significantly impacted small exporters, leading to increased shipping costs and logistical challenges [7] - Small businesses, like JCV Custom Works, are facing profit reductions of 10% to 15% due to higher shipping fees and additional tariff-related complexities [4][5] - The changes have forced small exporters to adapt quickly, including learning about Harmonized Tariff Schedule codes, which are now critical for determining tariff rates [4] Shipping and Costs - JCV Custom Works increased its shipping charges from $15 to $25, which is still below the actual shipping cost of approximately $36 per item [3] - The company has implemented a minimum order requirement of $50 to manage increased costs associated with shipping and tariffs [4] Business Impact - The stencil e-commerce business contributes 20% to 25% of the owner's monthly income, highlighting its importance despite being a side venture [6] - The overall business environment for small exporters has become more challenging, with potential inventory losses and increased risks due to tariff uncertainties [7]