Tariffs Could Ruin My Small Business - The Opinions

Summary

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.

Transcript

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New York Times Opinion Host (0:31)

This is the Opinions, a show that brings you a mix of voices from New York Times opinion. You've heard the news. Here's what to make of it.

Yair Reiner (0:45)

A lot of people put in the garlic at the beginning, but I find that if you put the garlic in the beginning, it can burn and there's nothing nastier than burned garlic. My name is Yair Reiner. I'm an entrepreneur, I'm the inventor of the Frywall and I own Gowanis Kitchen Lab. For the last several months running, my business has become a lot more complicated.

New York Times Opinion Host (1:09)

How prepared is this nation, United States, to deal with the consequences, economic and otherwise, of President Trump's global tariffs? China has announced a new tariff of 125% on U.S. imports, matching the recent.

Yair Reiner (1:23)

Increase from the U.S. i understand that there's kind of a street fight happening here between China and the U.S. and maybe there's historical reasons for why that makes sense. But at the same time, I feel like there's no consideration being given to the people on the crossfire like my company. These numbers just keep changing, as you know.

New York Times Opinion Host (1:47)

And what we've just confirmed from the.

Yair Reiner (1:48)

White House is that the new total.

New York Times Opinion Host (1:50)

Rate against China is now 145% tariff.

Yair Reiner (1:54)

Entrepreneurs like me, I think we're scrappy. You don't get to have a business, even a small one, without being able to react to changes in the environment, changes in the competitive landscape. But it's hard, and it's particularly hard if you feel that the ground is shifting beneath your feet arbitrarily. I would be able to deal with a tariff on China. I'd be able to deal with an embargo on Chinese goods. But I need time to be able to react. Right now I don't have the time. I don't have the line of sight. All we've been told for the moment is that there's a three month pause on tariffs from other countries. Without having clarity on what the tariff situation is going to be in the future, it's impossible for companies, even ones with relatively simple products like mine, to do any kind of planning. The frywall is a conical cylinder. A lot of people say it resembles the cone of shame, or what's called the e collar for dogs. And you just kind of fit it against the sides of the pan. I like to use carbon steel, which is kind of what you have in a lot of traditional restaurants. And here I have the frywall collection. So today we're going to cook japchae vegetarian. I recently gave a demo of the frywall in my kitchen in Brooklyn. So we're going to cook up our egg, cut that into pieces, Then we're going to quickly saute the vegetables, throw in the spinach, cook that, and then put everything back together with the yam noodles. About 10 years ago, I was in the kitchen preparing duck breasts for my kids. They'd somehow fall in love with duck breast during a recent trip to their aunt's house in France. And I made these duck breasts, and they made just a horrific mess on the stovetop. So the next time I was preparing to make them the duck, I thought, I gotta find a solution. And just out of desperation, I wound up wrapping my pan with some aluminum foil, creating a kind of cone so that the splatter would be caught, but the vapors could evaporate. And also I could reach in and flip the duck breast. And astonishingly, it worked. And it worked really well to the extent that I had a bit of a shiver down my spine, thinking, wow, have I just invented the greatest ladder protection known to mankind. And now the frywall is going to go into play. I'm going to put it right into the pan. Got all these vegetables, like, poof all at one time. Frywall catches them all, and they all fall right into the pan without a single one falling on the stovetop. When I originally invented the fry wall, I thought it was just curing a problem for the worst kinds of mess, the kind that you'd get from frying or browning meat. But it turns out that there's always mess from cooking, and the fry wall seems to take care of all of it. All right, so let me put some of this chapche on our plate. All right, I think we're ready to eat. And so I decided to pursue bringing this idea to a reality. And 10 years later, it's still on the market and doing well. When I first conceived of the frywall, I had this very rudimentary idea of what it would take to make a profitable product. I thought, well, you know, if you make a product for $10 and you sell it for $20, that's 50% profit. I was very fortunate very early on to meet someone who had had a product out in the market. And he explained to me that to have a product and a company successful in the kitchen cookware area, your cost of producing a good should be no more than a quarter of its selling price. So I realized very early on that having something, a product that would fly in the market was going to hinge on me being able to produce it at an affordable price. I figured that the most I could probably charge for a frywall would be something on the order of $25, which meant that I needed to be able to produce it for not much more than $5. I went about looking for that in the US and did not get very far. There weren't really companies that were, that I found that were set up to do this kind of production for a consumer product. So I went about trying to find other solutions and like a lot of folks in my situation, made my way to Asia, where I was able to find a wonderful partner at the time in Taiwan who had had a lot of experience in consumer products for the kitchen made out of silicone, a level expertise that was not available in the U.S. the reason that I was able to get a better price in Asia was not simply that labor costs were lower there. That was a part of the story, but that was a relatively small part of the story. What was more important was that the whole supply chain was there. They had the expertise to be able to make the compression molds needed for this type of product. They had the factory equipment, they had the mold making expertise, they had the supply of silicone available from China and from Korea, and they had the people in the factories who knew how to combine all these elements in order to produce this product. In the US that expertise and that supply chain simply didn't exist. Typically around this time of the year, I would be thinking about placing my order to Asia for inventory for the end of the year. Right now those plans are kind of out the window because my supplier in China is no longer accessible to me because of the tariffs. 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. But just a little while ago, it looked like Taiwan was going to be almost as expensive as China. Now all of a sudden, it's maybe a doable level with 10% tariffs, but can I act quickly enough to actually get my supply from Taiwan in time. The window of opportunity right now is only three months. After that, tariffs on Taiwan may be going up again. I don't know if I can react quickly enough, especially because my factory in Taiwan is getting really busy and may not have room for me. My top concern right now is that I may not be able to have product for the end of the year and so miss out on the most important season for Frywall economically and the same turn. I'm afraid that if I order too much, I may be stuck. One of the things that people don't understand is that when a product is made in China, it's not as though the entire value is going over to a company in China. So think about the Frywall. Right now, on average it sells for $25. 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. It goes to the Amazon warehouse workers, it goes to their delivery people. It goes to usps, who does the delivery for me. It goes to the software companies who help me run my website and run my accounting and run my marketing. And in the end, hopefully something is left for families and companies like mine. It seems like an awful shame to torch $20 of value just to get that last $5 of value back from China. At the same time, I've also been working over the last several months to launch a new 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. And I don't know whether I should launch this product. I understand why the government would make exceptions for things like iPhones and computers, because I think that maybe those are slightly more necessary for people's lives than Frywalls. And seeing the cost of your iPhone double would be a significant and I think clear hit to people. But there's also an issue of fairness. 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. And also unlike maybe companies that are better connected are being given no visibility about what may be coming down the line in two or three months. If I could speak to Trump right now, what I would ask him is just not to forget companies like mine. If we're going to live in a world with tariffs, fine. That's really not for me or any other small company to decide. But 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, and give us time to rebuild the supply chain elsewhere. Don't just hit us across the head and say, figure it out on your own. One of the things that I'm doing is talking a lot to fellow travelers, and Misery does like company, so there's a lot of commiserating going on for companies like mine, and I'm just trying to keep my head up, to tell you the truth, not to get too down to just to take things one day at a time.