FRANKLIN — This weekend, top U.S. officials are expected to meet with a Chinese delegation in the first major talks between the countries since President Trump placed high tariffs on Chinese imports. In the meantime, those tariffs have local small business owners concerned.
“At this point, I feel like everything is out of my control,” said Debi Pierson.
She owns the Poppy Boutique in Shelbyville and Toodleydoo Toys, a community staple in Franklin, staffed with six Toy experts.
“We have had a specialty toy shop in downtown Franklin for over 20 years now. We sell things you might not find at the big box store,” Pierson said.
The store also offers a baby section with clothing and other essentials.
However, the majority of the toys in her shop and across the country come from outside the U.S.
“80% of toys sold in the United States do come from China or other regions. So the tariff that is currently imposed is already decimating the toy industry,” Pierson explained. “No one is going to bring things in at that rate, and this will cause businesses to close.”
Up to 145% tariffs on Chinese goods went into effect last month, while a 90-day pause on reciprocal tariffs from other countries remains.
“Our tariffs went from an average of about 2.9% across all those countries up to about 28% today, with the biggest rate being on our Chinese imports,” said Michael Hicks, the director of the Center of Businesses and Economic Research at Ball State.
He believes the impact will go beyond small businesses.
“10-15%, I would say, is about what the typical manufacturer is going to be raising price,” he told WRTV. “So there will be shortages. There will be items just that are not available, and then the prices for the things that we do have will be substantially higher by midsummer.”
Pierson said some suppliers have already halted production and shipment. She has already had to raise prices on a few items at her store.
“If something doesn’t change, there is no way to move forward in this capacity,” she told WRTV. “Where are the toys going to come from if something doesn’t give?” she questioned
The toy store owner said she has what she needs now, but she doesn’t know if that will be the case come the holiday season, her strongest quarter of the year.
It’s just a fear she has for her store.
“It’s not just about dolls, it’s not about this business. It’s about all the products. It’s about communities, and I’m as afraid for my community as I am for my own business,” Pierson said.
Amid Small Business Week, she’s asking the community to step up, especially now.
“We don’t need your sympathy, but we do need your support,” added Pierson.
It's still unclear how long tariffs might be in effect, but if they do remain in place for a while, Hicks predicts growth in Indiana could shrink by 2%, which could cut around 55,000 jobs across the Hoosier state by December.
