Small business owner shares how Trump's tariffs affected sales

Small business owner shares how Trump's tariffs affected sales President Trump's on-again, off-again tariffs on Chinese imports affected many U.S. businesses last year. We check in with one small business owner to ask what the year and holiday season were like.

The average U.S. tariff on Chinese products is 47.5%. Now that the holiday shopping season is over, we wanted to check back in with a small business owner affected by those tariffs.

Beth Benike is the CEO of Busy Baby, a Minnesota-based company that makes baby products.

BETH BENIKE: My business and my life have been a complete roller coaster (laughter) filled with uncertainty, filled with good things and bad things.

MARTIN: Back in May, when I spoke with Benike, she was scrambling to figure out how to deal with changing tariffs on products her company makes in China.

BENIKE: It was like, now we're a lost cause. And our products were ready to ship. So I quickly called the factory and said cancel the booking. There's no way we can come up with that kind of money in a month. And then it went up even higher (laughter). And that's when I hit the floor and just cried.

MARTÍNEZ: U.S. tariffs on Chinese products went as high as 135% before the Trump administration rolled them back. Benike was forced to keep inventory in China, leaving her without products to sell for two months.

MARTIN: A silver lining, Benike says, has been expanding internationally and working with other entrepreneurs. Still, things remain tough.

BENIKE: We had the low revenue and things were quite difficult and debt was piling up. I had to let my brother go, and then I actually didn't pay myself for the whole summer. I went through my savings and I cashed in my retirement to keep the business afloat.

MARTÍNEZ: This holiday season, Benike sold things at a deep discount.

BENIKE: We ran a sale where we actually cut our prices as low as possible, not really making a profit but at least getting some sales to get the bills paid and pay my two employees because the cost of everything has gone up so much. We got some sales in the door. Our holiday sales ended up - I just did the math - 30% less than what they were last year.

MARTIN: Since we spoke last May, Benike has been advocating for small businesses nationwide. And for the new year, she offered some reflections.

BENIKE: There have been times that have been incredibly hard for me where I wonder, do I need to just let this dream go? And then I am reminded that I have a great business. I've built this dream. And what's happening is out of my control. It's not a mistake I made. And what I'm doing by trying to advocate for myself and for all small business in the U.S. is giving that same hope to other small business owners.

MARTIN: She says messages of support and kindness from customers and other small business owners keep her going.

(SOUNDBITE OF STEVE CRADOCK'S "LAPIS LAZULI")

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