Minnesota Busy Baby business owner: China tariff talks will allow business to continue, for now
The U.S. and China agreed on Monday to temporarily cut tariffs — the latest update as trade talks continue between the two countries.
The tariff on Chinese imports to the U.S. will drop to 30 percent from 145 percent, and the tariff on American goods to China will drop to 10 percent from 125 percent.
The new deal is for just 90 days — which means the uncertainty continues for many American business owners who manufacture in China. That includes Busy Baby — a small company based in Oronoco, Minnesota, just north of Rochester.
“We have this 90-day pause. But then what?” Busy Baby founder and CEO Beth Benike told MPR News host Emily Reese on All Things Considered. “That's cutting it close for business planning.”
When President Donald Trump first announced tariffs on Chinese goods back in April, Benike spoke out about the impact on her business. She left $158,000 of inventory in China, saying she couldn’t afford to ship it to her company’s Zumbrota, Minnesota warehouse.
A 30 percent tariff now makes it possible for her to afford to ship those products over.
“Just enough to get what's already made and sitting at our factory to get it here to keep us in business for a few more months till we can figure out next steps,” she said.
In the meantime, Benike is considering backup plans including international distribution.
Press play above to listen to the conversation with Benike.
