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50% Tariffs Are Pushing a 22-Year-Old U.S. Company to the Brink
- We Pay the Tariffs
- Oct 23
- 1 min read
Babco Foods International, a 22-year-old U.S. company based in New Jersey, has spent decades building a business that supports American workers and communities. Now, a wave of new tariffs is threatening to undo all of it.
Letter signer Olivia Vaz shared the stark reality:
“Babco Foods is suffering huge cash-flow issues as a result of paying 50% in tariff on goods imported from India. We are a 22-year-old company. This is the first time we are in such dire situation. Most of our retained earnings of past 22 years are being used to meet tariff payments and to retain our staff. We will not be able to continue much longer.”
Stories like Olivia’s are why We Pay the Tariffs has submitted an amicus brief to the Supreme Court in the landmark case challenging whether the President can use emergency powers under IEEPA to impose tariffs. The Court’s decision could have far-reaching consequences — potentially determining whether billions already collected under IEEPA tariffs must be refunded to U.S. importers.
For long-standing businesses like Babco Foods, the stakes couldn’t be higher. When half of a company’s cash flow is consumed by tariffs, jobs, growth, and stability are all on the line.
📢 If your business has been affected by tariffs, sign our open letter to stand with 700+ other small businesses calling for fair, accountable trade policy.
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