Uncertainty Over Future Amid Rising Tariffs for Small Businesses

Franklin, Indiana - As top U.S. officials prepare to meet with a Chinese delegation in talks since President Trump placed high tariffs on Chinese imports, local small business owners are left uncertain about their future.

"At this point, I feel like everything is out of my control," said Debi Pierson, owner of the Poppy Boutique and Toodleydoo Toys. "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."

The majority of toys sold in the United States come from outside the country, with 80% coming from China or other regions.

"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, director of the Center for Businesses and Economic Research at Ball State.

"10-15%, I would say, is about what the typical manufacturer is going to be raising price. 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?"

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 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.

She is asking the community to step up, especially now. "We don't need your sympathy, but we do need your support," added Pierson.

The uncertainty surrounding tariffs has left many wondering how long they will remain in effect and what impact they could have on local businesses. If tariffs continue, Hicks predicts growth in Indiana could shrink by 2%, cutting around 55,000 jobs across the Hoosier state by December.