News

LAs small businesses across America continue to grapple with tariff challenges, one that specializes in high-end dog crates has seen its tariff taxes skyrocket from $2,000 per shipment to about $25,000 for the same size order.

• DIGGS faces financial strain caused by rising tariffs on steel, aluminum, and Chinese imports.
• “Tariffs are limiting our ability to expand, and we won’t expand as quickly as we would have otherwise,” said Israel Maynard, COO of DIGGS.

What began as a manageable 3.4% total tariff level in 2017 has ballooned this year to 73.4%. DIGGS has raised prices, reduced headcount, and delayed expansion plans as a result.

• The company is exploring alternatives to making its crates in China, but the risks and costs of such a move remain high.

Why it matters: Higher tariffs make running a small business even more challenging. Companies are struggling with the uncertainty, rising costs, and fear of passing tariff taxes to consumers.

• Small businesses face a $202 billion annual tariff tax burden, according to U.S. Chamber calculations.

“It’s really hard to see what the endgame looks like,” Maynard said. He hopes policymakers will understand that small and medium-sized businesses—which have the least ability to absorb tariff-related costs—are the hardest hit.

That’s why the U.S. Chamber is calling for immediate tariff relief for any small business importer and for products that cannot be made in the U.S. or that put American jobs at risk.