NEW YORK, November 24. /TASS/. The trade chaos caused by the constantly shifting policies of US President Donald Trump is forcing foreign small businesses to rethink their strategies, the New York Times reported citing entrepreneurs.
"The trade rules have upended strategies, prices, logistics and investments as businesses try to both inform and hold on to their U.S. customers. Some small companies, which operate on razor-thin margins, are questioning or pausing their U.S. expansion plans," the newspaper wrote.
Changes to tariff regulations, including the abolition of the monetary threshold below which imported goods are exempt from customs duties and the introduction of tariffs of up to 15-25%, are forcing small foreign businesses to reconsider their strategies for operating in the US market.
Some companies are raising prices by $10-30, while others are absorbing some of the additional costs or temporarily suspending shipments. Business representatives say customs classification errors, arising amid constantly changing requirements, are leading to increased costs and delays in receiving refunds.
Entrepreneurs also point to a decline in consumer demand. American shoppers are wary of additional costs associated with tariffs and clearance, preferring to hold off on purchases or opting for vintage stores, which is impacting sales of foreign brands. Amid high uncertainty, some companies are postponing expansion into the US market, adjusting logistics, or establishing subsidiaries in the US or Canada to mitigate the impact of changing trade regulations.