As of March 4, 2025, small business owners producing goods in China are facing a new reality: an additional 10% tariff on imports from the People’s Republic of China, effective tomorrow. This latest move by the Trump administration escalates the total tariffs on Chinese goods and underscores a growing push to bring manufacturing back to the United States. For small companies relying on Chinese production, this tariff increase could disrupt profitability and supply chains—making U.S.-based manufacturing an increasingly viable option.

What’s Happening with the New Tariff?

Starting tomorrow, the Trump administration will impose an additional 10% tariff on all goods imported from China, building on existing duties. This brings the total tariff rate on Chinese imports to approximately 20% for many products, stacking the new levy atop the 10% tariff introduced in February 2025 and other pre-existing duties from Trump’s first term. For small business owners, this hike could erode margins or force price adjustments—especially as the economic case for overseas production weakens.

Which Products Will Be Affected?

This broad tariff sweep will impact a variety of product categories commonly manufactured in China by small businesses. Here’s what’s on the list:

Plastic injection molding in China is getting really tricky and you might be wondering what does that have to do with China’s military, well here’s the connection. One thing that has allowed China to present themselves as a world superpower, is that they have portrayed themselves as a great military power. However, news has leaked that tells quite a different story. Like most news from China lately, the truth appears to be quite different from the reality of the situation. Based on a Bloomberg report, their military appears to be as weak as their economy.

President Xi has been putting a lot of effort into making the Chinese missile force into one of the largest in the world. Not just a major component of the Chinese military, but in fact their crown jewel of the military and their effort to modernize their military. Xi has been making a big show of the fact that his missile force was not only large, but it was more than ready to fight should anyone get in the way of their interests in forcing their will onto the region. Xi has made it very clear that their aggression would result in China’s invasion of Taiwan. For years the world has been holding their breath waiting for the likely invasion.