Small US retailers face holiday supply chaos due to Trump tariffs

[groundloop]

Source: Reuters

For Matt Hassett, founder of New York-based sleep wellness brand Loftie, the year-end holiday rush has always kept him on his toes.

But this time, it has turned chaotic as import tariffs on China, from where Loftie sources its sunrise lamps and phone-free alarm clocks, disrupted supply chain.

"It's been very difficult to prepare. We have sold down to extremely low stock levels - we probably have about 10% of the inventory we need," he said earlier this week.

U.S. President Donald Trump's tariff flip-flop on goods from China, a lifeline for U.S. retailers, have forced small firms such as Loftie to choose between paying steep levies or finding new suppliers at even higher cost.

Read more: https://www.reuters.com/business/retail-consumer/small-us-retailers-face-holiday-supply-chaos-due-trump-tariffs-2025-11-26/

[Midnight Writer]

1. Trump doesn't care about "small" business. He likes the big corporations that give him gifts.

[progree]

2. Operating margins for small retailers with total assets less than $50 million have plunged to negative 20.7%,

Operating margins for small retailers with total assets less than $50 million have plunged to negative 20.7%, according to business analytics provider RapidRatings, leaving 36% of them at a high risk of bankruptcy compared to 12% of large retailers.

"For the first time since the pandemic, average profit has dipped into negative territory... disproportionately impacting smaller companies that lack the scale and resources to absorb these pressures," said James Gellert, executive chairman of RapidRatings.

. . . Uncertainty from tariffs resulted in some businesses placing big holiday orders to get ahead of duties, but they risk getting stuck with unsold items due to an increasingly fragile consumer confidence.