Deena Ghazarian only had a year in business when President Donald Trump’s first term brought her company to the tail.

It was 2019, and her California Austere just agreed to provide its high-end audio and video accessories to several major U.S. retailers, which are mainly made in China.

Then Trump imposed a full tariff on China, and throughout the night Dina found herself paying a 25% surcharge on every cable and assembly imported – from zero highs before.

She was forced to absorb costs and for a while thought she would go bankrupt.

“I literally think I’m going to start and end a business in less than a year,” she said. “I’ve spent all the time, money and energy to have a similar blind person, and you’re shocking.”

The company has passed, but like many other U.S. businesses, it now finds itself in a very similar situation.

Since returning to office in January, Mr. Trump has raised tariffs on all goods imported from China by 20% and raised the 25% tax rate on Canadian and Mexican products, only delaying some of them until April.

The president said he wanted to force these countries to do more to stop illegal drugs and immigrants from entering the United States, bring more manufacturing back to the United States, and address what he believes is unfair trade imbalance.

However, the scope of responsibilities is gradually phased and exempted from many products.

Now, for the first time, goods such as smartphones, desktop computers and tablets have caused tariffs, while the higher the taxes on other items are.

“U.S. importers must pay these taxes, not exporters,” said Ed Brzytwa, vice president of international trade at North American trade agency.

“It’s the American businesses and consumers who suffer.”

Businesses like Ms. Ghazarian are particularly exposed. China remains the number one electronic product supplier in the United States According to official data.

Meanwhile, 87% of video game consoles imported from China that year were from smartphones, 78% of laptops and tablets, and two-thirds of monitors. CTA said.

Since Mr. Trump’s first term, many U.S. companies like Austere have set their supply chains apart from China, but countries such as Thailand, Taiwan and Vietnam still do not provide the same manufacturing capabilities and expertise.

Meanwhile, the U.S. president is now targeting Mexico – another major electronics provider. Although the U.S. domestic manufacturing has increased, partly due to tariffs, it is still subject to higher costs and stricter regulations.

“Yes, Apple is now making some iPhones in India, and (Taiwanese chipmaker) TSMC has diversified to Arizona.”

“But China is still a huge part of the supply chain. Relationships with new suppliers take time to develop, and they are expensive to develop.”

Research shows that companies pass a large portion of tariff costs to raising prices. Earlier this month, Corie Barry, owner of U.S. e-tailer Best Buy, said the “overwhelming majority” of the new tariffs would be “probably passed on to consumers” because suppliers in the industry have small profits.

In February, Taiwanese company Acer said its laptop price could rise by 10% under the 10% tariff in China at the time, while U.S. group HP warned that its profits would be lower due to the tariffs.

Ms Ghazarian said she may have to raise the price this year but was worried that it could backfire. “There is a price point where the customer is satisfied with the value of the goods offered.

“When I surpassed the moment I started losing customers. High inflation squeezed Americans.”

During Mr. Trump’s first semester, companies like Apple successfully obtained product waivers and we may also see vans.

Insiders also suggested that Mr. Trump believes tariffs are a negotiating strategy and can relax them if he wins concessions, as he did when he agreed to buy more U.S. goods in a deal reached in 2020.

Worry about a slowdown in the U.S. economy It can also make him change his course.

However, the current tensions may escalate. China, Mexico and Canada vowed to retaliate against any U.S. duties imposed, and this week Mr. Trump threatened to impose taxes on Canadian steel and aluminum, only back at the last minute.

He plans to impose “reciprocity tariffs” on the rest of the world as soon as possible and threaten a 60% increase in tariffs on Chinese goods in the campaign.

If China is forced to relocate manufacturing to countries with higher labor costs, this could increase the price of tech products around the world. In addition, countries may impose tariffs on imported U.S. technology.

Ms. Ghazarian said she was worried, but at least this time she was ready. Like many other American business owners, she ordered additional stocks in bulk before Trump took office and stored them in her East Coast warehouse.

She hopes that will allow the company to “rotate” again by next year.

“It could mean finding a more cost-effective way to produce products or do something completely different. It’s frustrating and I have to focus on surviving rather than growing my business.”