Tariffs Are Sinking Us: A California Business Owner’s Story

A California-based outdoor sports and travel goods retailer is facing a dire situation this summer. The small business, once a thriving and highly seasonal, now finds itself on the verge of collapse—unable to import its key summer products due to skyrocketing tariffs. We sat down with the founder & CEO, who shared the immense pressure these trade actions are placing on his business.

The shop’s top-selling item, a travel backpack, is now subject to an 80% tariff. A popular $40 surf rack made of metal is stuck in China, hit by overlapping Section 232 steel and aluminum tariffs and a 30% tariff on Chinese imports, rendering the product unaffordable to bring in. Most of the company’s other core products, from sports gear to travel goods, face tariffs ranging from 30% to 50%.

In total, 85% of the company’s products are manufactured in China and 15% in Vietnam. The company had been working to shift production to Vietnam, Pakistan, and Mexico, but newly announced high tariffs on those countries have made relocation financially meaningless. With tariffs now high across the board and constant policy uncertainty, keeping production in China has become the most affordable and predictable option.

Domestic production isn’t a viable alternative. U.S. manufacturers have quoted prices up to four times higher than overseas options, and some have declined to take on production at all due to the complexity of the products.

Despite a 50% drop in sales, the company has resisted major price increases in order to remain competitive in a saturated ecommerce market. Foreign sellers not subject to the same U.S. tariffs continue to undercut American businesses online. To stay afloat, the company has let go of its marketing staff, consolidated warehouse operations, and made small price adjustments on select items. The CEO has even stopped paying himself due to the rising cost of doing business.

With no clear path forward, this California business—like many other small businesses—faces a breaking point. The combination of collapsing consumer demand and aggressive tariff policy has pushed this once-successful American company to the edge.