Woman Gives Perspective On Tariffs After Her Dream Got Crushed, Goes Viral With Over 1.2M Views

The last few months have forced many folks to engage in an unwanted crash course on basic economics. On the one hand, it’s good for more folks to get first hand experience with some of the financial building blocks of the world, on the other hand, it’s somewhat surprising how many people were not at all aware of what some words actually mean.

Content creator and small business owner Lexi Larson shared how US tariffs on Chinese goods would very likely ruin her company. We reached out to her via email and will update the article when she gets back to us.

Economic uncertainty makes it pretty hard to run most businesses

Small business owner in a car discussing how new tariffs could impact her company.

Image credits: itslexilarson

So one woman shared exactly how the incoming tariffs on China could ruin her business

US small business owner worried about new tariffs, uncertain about $30,000 shipment from China.

A small business owner discusses the impact of tariffs on her company from inside a car.

Text discussing new tariffs impacting small business owner's operations in the US.

A small business owner in the US discusses tariffs' impact, sitting in a car, wearing a brown jacket.

Text from a small business owner in the US expressing concerns about tariffs impacting her company’s operations and expenses.

Text from a US small business owner concerned about high tariffs on imported products.

Text describing a US small business owner's dilemma about tariffs affecting product returns to China.

Text from a small business owner in the US expressing concern over tariffs impacting her company.

Small business owner in a car discussing the negative impact of new tariffs on her company.

Text expressing a small business owner's shock over new tariffs and potential financial loss in the US.

Image credits: itslexilarson

There are a lot of misconceptions about tariffs

A tariff is basically a tax that a government puts on goods coming in from other countries. Think of it like an extra fee you have to pay when you buy something from abroad. The idea is to raise the price of those imported items, which can help local businesses that make similar products by giving them a bit of a price advantage.

Here’s how it works: Imagine you want to buy a pair of shoes made in another country. Without a tariff, the shoes might be sold at a certain price. However, when the government adds a tariff, the importer has to pay extra on those shoes. To cover that cost, the importer raises the price when selling the shoes in your country. So, you end up paying more for those imported shoes than you would if they were made locally without the added tax. This is very important, as some folks, including some commenters, were adamant that, in this case, “China” would pay. This is false.

Governments may impose tariffs for a couple of reasons. One is to protect local jobs and industries. By making imported items more expensive, local products become more attractive to consumers because they’re cheaper in comparison. Another reason is to generate revenue for the government. In the case of the US, the profits from the last wave of tariffs were used to bail out farmers who suffered from, you guessed it, those exact tariffs. Despite the claims of the administration, this is not a way to get free money.

Businesses and manufacturers suffer from these disruptions

Image credits: CHUTTERSNAP / Unspalsh (not the actual photo)

High tariffs can hurt supply chains and businesses in significant ways. When tariffs are set too high, companies that rely on imported materials or intermediate goods face increased costs, which can disrupt their production processes. For instance, a manufacturer might need to source critical components from overseas; if high tariffs boost those costs, production becomes more expensive and less competitive. This not only affects the profit margins of individual companies but can also lead to higher prices for consumers, as businesses pass on these added costs.

Moreover, high tariffs can force companies to reconfigure their supply chains. While some businesses may attempt to source materials from domestic suppliers instead, not all products or ingredients have local alternatives that can match the same quality or volume. This forced shift can result in delays, reduced efficiency, and even compromise the overall quality of the final product.

In a global market, where speed and reliability are crucial, such disruptions can weaken a company’s competitive edge. One example is the idea of making the iPhone in the US. Even by quite generous estimates, this would at least $290 to the price tag, if not more. There are already examples of US manufacturers shutting down plants and projects, as they expect a downturn in revenues. For example, a CNC machine producer is cutting spending and Microsoft is backing out of a billion dollar data center in Ohio. After all, most people already dislike their white collar jobs, they are not likely to want to stand in a factory for eight hours a day.

In the long run, it also hurts one’s ability to sell your products abroad.

On a broader scale, these high tariffs may trigger trade disputes or retaliatory measures from other countries. Tariffs are a two way street, most nations won’t just take them lying down. When one nation imposes steep tariffs, its trading partners might respond in kind, further increasing costs and uncertainty for businesses that operate internationally. This ripple effect can stifle global trade, reduce market access, and ultimately lead to economic slowdowns that impact both industries and consumers.

In essence, while tariffs can be a tool for protecting domestic industries and generating revenue, excessively high tariffs tend to backfire. They complicate supply chains, escalate production costs, and risk igniting broader trade conflicts that hurt businesses and consumers alike. Some argue that they might bring back manufacturing. However, it’s important to point out that US manufacturing was growing! Even more bizarrely, president Trump is set on canceling the CHIPS act, which was intended to help move the manufacture of semiconductors to the US. So much for “American factories.”

Some viewers seemed to have a lot of misconceptions about how tariffs work

Comments discussing tariffs impact on small business owners in the U.S., referencing import costs and consumer prices.

User comment on tariffs affecting small business owner, 403 likes.

Comment by user with sunglasses about playing golf instead of caring. Includes a like count of 16.7K.

Comment discussing tariffs' impact on US citizens, emphasizing small business owner's concerns about new tariffs affecting her company.

A comment discussing tariffs with a high number of likes, questioning statements about China paying them.

Comment discussing impact of tariffs on small business owners in the US.

Comment discussing tariffs impact on small business, stating "Tell customs that China is paying the bill" with 90 likes.

Comment discussing the impact of tariffs on a small business owner in the US with political references.

Comment on tariffs discussing economic impact on small business owner.

Comment about US tariffs impacting small business, questioning consequences of actions.

Text comments about US small business owner's challenges with tariffs, mentioning importing fabric and local job creation.

Comment discussing how tariffs affect small business owners in the US.

Comment questioning small business owner's choice to import from China over local manufacturers, referencing tariffs.

Comment highlights small businesses at risk from tariffs, favoring big corporations.

Comment discussing tariffs with 30 likes, highlighting concerns of a small business owner in the US.

Comment expressing concern about tariffs affecting small business owners in the US, with 4794 likes.

Comment expressing concern about the impact of new tariffs on a small business, mentioning unprecedented trade war.

Small business owner in bridal industry worried about new tariffs impacting dress order costs.

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