Australian business forced to shift after US announces tariffs

Economists have spent the last week warning of the butterfly effect from raising tariffs and now we’re slowly seeing how things will look for small businesses.

An Australian business owner has revealed the brutal toll her company has faced after US President Donald Trump’s tariffs on China were pushed through.

Economists worldwide have spent the last week warning of the butterfly effect from raising tariffs and now we’re slowly seeing how things will look for small businesses that sell Chinese-made products across the globe.

The US has a 10 per cent base import tariff and a 125 per cent tariff on Chinese goods, with most new tariffs paused for 90 days - China excluded.

Sophia Argyropoulos, founder of RAQ Apparel, said that because her swimwear company’s products are made in China, she was forced to pay higher bills and closed her online US store, not wanting to pass the cost onto customers.

Taking to social media, she said it was a “really hard decision to make”.

“When tariffs went over 100 per cent on Chinese made goods, I was like ‘well we literally can’t make any money’,” she said.

An Aussie business owner has revealed the brutal toll her company has faced after Donald Trump’s tariffs on China were pushed through.

Ms Argyropoulos said she hasn’t been able to find anyone else with the expertise to make her products meet the current standard.

“When we’re sending our products to US customers, we have to declare they’re made in China. If we’re covering that cost, it will wipe all our revenue,” she continued.

“So, it was a no-brainer to turn off the website. I don’t want to put that cost onto our US customers.”

Chinese President Xi Jinping. Picture: Andres Martinez Casares/Pool Photo via AP

“Feeling for everyone in the US right now, and small brands that are going to lose a lot of business. I assume a lot of other brands are going to stop selling to the US.”

China followed through on its promise and announced late Friday that it would raise tariffs on US goods to 125 per cent.

US President Donald Trump listens to Secretary of State Marco Rubio. Photo by Brendan SMIALOWSKI / AFP

“The US’s imposition of abnormally high tariffs on China seriously violates international trade rules, basic economic laws and common sense,” Beijing’s State Council Tariff Commission said in a statement shared by the finance ministry.

The new levies will be in force on Saturday.

Global trade could decrease by up to 7 per cent and GDP by 0.7 per cent, with developing countries the worst impacted, the International Trade Centre said this week.