Podcast Summary: Tariffs Could Ruin My Small Business
Podcast Information:
- Title: The Opinions
- Host/Author: The New York Times Opinion
- Episode: Tariffs Could Ruin My Small Business
- Release Date: April 28, 2025
- Description: You've heard the news, here's what to make of it.
Introduction
In the April 28, 2025 episode of The Opinions, hosted by The New York Times Opinion team, entrepreneur Yair Reiner shares his personal struggles and challenges faced by his small business amidst escalating global tariffs. Titled "Tariffs Could Ruin My Small Business," the episode delves deep into the real-world implications of international trade policies on small enterprises.
The Impact of Tariffs on Small Businesses
Yair Reiner, the inventor of the Frywall and owner of Gowanis Kitchen Lab, opens up about the increasing complexities his business has faced over recent months due to shifting tariff landscapes. He remarks, “There’s a street fight happening here between China and the U.S. ... but there’s no consideration being given to the people on the crossfire like my company” (01:23). This sentiment underscores the disproportionate impact of tariff wars on small businesses compared to larger corporations.
The host probes into the preparedness of the United States to handle the economic repercussions of President Trump's global tariffs. Reiner responds by highlighting the unpredictability and volatility that tariffs introduce, making it exceedingly difficult for small business owners to plan and strategize effectively. “Without having clarity on what the tariff situation is going to be in the future, it’s impossible for companies ... to do any kind of planning” (01:54).
Supply Chain Disruptions and Production Challenges
Reiner delves into the specific challenges his business faces in maintaining an affordable production pipeline. Initially reliant on a supplier in China, the introduction of a 125% tariff forced him to seek alternatives. While Taiwan emerged as a potential option, the fluctuating tariff rates—rising to 145%—posed significant hurdles. “Now things are changing day to day. Three weeks ago, it seemed like I had no other option because I do have an alternate supplier in Taiwan” (09:00).
He elaborates on the critical role that Asia, particularly Taiwan, plays in his supply chain due to their specialized expertise and established infrastructure. “They had the expertise to be able to make the compression molds needed for this type of product... In the US that expertise and that supply chain simply didn’t exist” (05:30). This reliance on foreign suppliers makes small businesses like his highly vulnerable to international policy shifts.
Economic Viability and Value Distribution
A significant portion of the discussion centers around the economic viability of maintaining production in China versus potential losses due to tariffs. Reiner explains the intricate distribution of the product’s value: “The actual cost of the product for the physical product is about $5. That is what goes to China. The rest of that money, that other $20, goes to various companies and people in America” (10:15). This breakdown emphasizes that while tariffs aim to protect domestic industries, they inadvertently disrupt the broader economic ecosystem supporting small businesses.
Reiner points out the inefficiency introduced by tariffs, where “it seems like an awful shame to torch $20 of value just to get that last $5 of value back from China” (11:45). This not only affects his bottom line but also hampers the interconnected network of American workers and services reliant on his business.
Impact on Product Development and Future Planning
Beyond immediate supply chain issues, Reiner discusses how tariffs stifle innovation and future product development. He is currently working on launching a new product, which is on the brink of completion. However, the looming uncertainty around tariffs jeopardizes the timely release of this product. “I’m really excited about something that I think could be even bigger than the original Frywall, but I’m paralyzed because it’s going to be ready to ship in right around that 90 day window when tariffs are set to potentially rise again” (11:20).
This paralysis not only threatens the growth of his business but also limits his ability to compete and innovate in the market, highlighting a critical downside of aggressive tariff policies on the entrepreneurial landscape.
Calls for Policy Adjustment and Support for Small Businesses
In a heartfelt appeal, Reiner emphasizes the need for government intervention to support small businesses caught in the crossfire of international trade wars. He urges, “Just give us a chance. Give us some time to adjust. Take these tariffs off for a span of six months. Let us get the inventory that we’ve already built and paid for out of China or wherever it sits back home at the price that we’d forecast” (11:50). This plea underscores the necessity for more nuanced tariff policies that consider the unique vulnerabilities of small enterprises.
Reiner also criticizes the disparity in government relief, noting that large corporations like Apple receive exceptions, while small businesses are left without support. “I feel like Apple as a company is being spared even though it has the capital to weather blows like this. But companies such as mine are being given zero relief” (11:30). This highlights the uneven playing field created by blanket tariff policies.
Conclusion and Personal Resilience
Despite the daunting challenges, Yair Reiner remains resilient. He shares how connecting with fellow entrepreneurs provides him with much-needed support and camaraderie. “There’s a lot of commiserating going on for companies like mine, and I’m just trying to keep my head up ... to take things one day at a time” (12:20). His story serves as a poignant reminder of the human impact behind economic policies and the urgent need for more inclusive and supportive measures for small businesses.
Notable Quotes:
- “There’s nothing nastier than burned garlic.” – Yair Reiner (00:45)
- “There’s no consideration being given to the people on the crossfire like my company.” – Yair Reiner (01:23)
- “Without having clarity on what the tariff situation is going to be in the future, it’s impossible for companies ... to do any kind of planning.” – Yair Reiner (01:54)
- “It seems like an awful shame to torch $20 of value just to get that last $5 of value back from China.” – Yair Reiner (11:45)
- “I’m just trying to keep my head up ... to take things one day at a time.” – Yair Reiner (12:20)
Final Thoughts
Yair Reiner's candid discussion on The Opinions sheds light on the often-overlooked struggles of small business owners in the face of international trade tensions. His insights call for a reevaluation of tariff policies to better support the backbone of the American economy—its small enterprises. This episode not only highlights the economic ramifications but also the personal toll that such policies can exert on passionate entrepreneurs striving to innovate and grow.