A Small Business Owner Asks, 'What's Your Plan,' Now That A $20 Product From China Costs $50 Before It Even Hits The Warehouse?

A post from a small business owner on Reddit’s r/smallbusiness subreddit has gained traction, capturing the panic and confusion spreading across the community as new tariffs on Chinese imports start to take effect. 

The user, fulltrendypro, warned fellow entrepreneurs: “Next month, your $20 product from China could cost you $50 before it even hits your warehouse. What’s your plan?”

Don't Miss:

• ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.26/share with a $1000 minimum.
• Invest in the future of digital engagement: Own a piece of the $100 billion Metaverse for just $500.

The Tariff Wall Hits Hard

The tariffs referenced are part of President Donald Trump’s new trade policy, which includes a 145% tariff rate on many Chinese goods. These tariffs have already begun impacting certain categories and will ramp up significantly on May 2, when the U.S. eliminates the de minimis exemption for imports under $800. That exemption previously allowed many small shipments from China to enter the U.S. without duties.

“Even under-$800 packages will face a 120% tariff plus a $100–$200 per item fee depending on when it arrives,” fulltrendypro explained. “So your $20 product? It could cost over $100 before it even hits your warehouse.”

Small Businesses Sound the Alarm

The responses to the post poured in fast, and they shared a common tone: stress, uncertainty and financial strain.

“I've spoken with manufacturers directly to design products,” one user said. “But even then, I used low [minimum order quantities]. The inventory costs are going to be insane. The moment I heard of all this, I decided to just close. I'm in the process of dissolving.”

Trending: With shares starting at $1.52, this could be your chance to invest in the future of healthcare.

A tea shop owner who imports teas from China added, “Where are a lot of the specialty teas grown? CHINA. Seven years of incredibly hard work shot to hell. I’m fearing. I started out optimistic three weeks ago. Not now.”

For companies with more infrastructure, the consequences are no less dire. One business owner employing over 200 people said, “We've stopped all shipments from China. Containers will be piling up at our factories… We have a few weeks before the layoffs and furloughs start. Sh*t will hit the fan for real if this isn't solved within 30 days.”

Finding a Way Around

Some companies are trying to adapt. Options on the table include moving supply chains to countries like Vietnam, Cambodia, and Mexico, or sourcing from domestic suppliers despite higher costs. Others are warehousing inventory overseas, holding shipments, or attempting creative workarounds to avoid direct China-to-U.S. trade.

“It's definitely a gut punch for anyone relying on China, especially for low-margin products. We’re already shifting to Mexico and parts of Southeast Asia,” one commenter said. “Costs are slightly higher than pre-tariff China, but way more stable now.”

But even alternative sourcing isn't a guarantee. "If you hit a bad window when it comes through port when the tariffs are at an all-time high and then the week after they drop back to 25%, that's the problem," one business owner noted.

Trending: Hasbro, MGM, and Skechers trust this AI marketing firm — invest pre-IPO from $0.60 per share now.

Not Just Dropshippers and Trinkets

Many commenters stressed that this is not just about cheap gadgets from Temu or Shein. “It's not just AliExpress sellers. It's brands, factories, and massive workforces with nowhere to pivot fast enough,” fulltrendypro wrote.

Others echoed this. “The Temus and Sheins and garbage brands on Amazon need to be stopped,” one user said. “Those actually do create an unfavorable trade situation.”

When someone joked to “get used to living on a bowl of rice a week,” another one joked, “The U.S. produces something like 1% of the world's rice, so maybe another food,” highlighting how dependent the U.S. remains on foreign goods.

See Also: BlackRock is calling 2025 the year of alternative assets. One firm from NYC has quietly built a group of 60,000+ investors who have all joined in on an alt asset class previously exclusive to billionaires like Bezos and Gates.

Looking Ahead

Most commenters agreed that passing on the cost to consumers is inevitable, though risky. “Passing it on to the customers once my suppliers jack up their prices, same as COVID times,” one wrote. “Sales will likely suffer in a big way.”

Others are holding out hope for a policy reversal, but few are betting on it. “Placing an order in China right now is literally writing a blank check that you don't know how much you're on the hook for,” one frustrated user posted.

The consensus? It's a mess. And without transparent, stable trade policies, it's the small businesses that could be the first to go under.

Read Next:

• Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – with $1,000 you can invest at just $0.26/share!
• It’s no wonder Jeff Bezos holds over $250 million in art — this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here’s how everyday investors are getting started.

Image: Shutterstock