A stable China-U.S. economic and trade relationship would provide greater certainty and predictability for vulnerable small businesses engaging in international trade, said a U.S. entrepreneur. The latest China-U.S. trade talks have delivered a potential break for businesses on both sides. The two countries have agreed to reciprocal tariff reductions covering about 30 billion U.S. dollars of goods each, including products such as children's car seats and toys.
In an interview with China Global Television Network (CGTN), Beth Benike, founder of the U.S. baby-products company Busy Baby, called for clearer tariff rules through dialogue, stressing that for American small businesses that rely on China for manufacturing, tariff cuts could ease the costs of sourcing.
"That's great news. I mean, that really helps because there are so much more expenses for me. I didn't pay tariffs prior to President Trump coming into office, and so this is a new expense for me that was not built into my business model. So I've been trying to figure out how to absorb those expenses. I've worked with my factory in China to find efficiencies in our packaging and in the products. So knowing that tariffs might come down a little bit is going to really help with keeping my business afloat, going forward," she said.
The entrepreneur said she sees trade predictability as a driver of investment and innovation, and she expressed hope that the new agreement will give her more confidence in planning for the company's future.
"That's the thing we've been missing, is any kind of predictability, any kind of stability. It makes it very hard to make decisions. So I'm hoping what our leaders are finding is that it benefits all of us on both sides of the globe when we have some stability, so we can all make decisions and invest in growth and innovation, instead of what we've all been doing for the last two years, which is just trying to figure out how to survive. I hope it means that we are moving forward in a way that shows more cooperation, because we live in a global economy. We need each other, all of us on the planet. And so with two of the biggest, most powerful countries in the world working together instead of fighting each other, we can find more growth, more innovation, find more efficiencies and improve everything for all consumers and all families across the globe," she said.
With nine years of cooperation with her Chinese partners, Benike said her experience has shown the value of stable ties, and she urged policy makers to consider the impact that instability can have on businesses like hers.
"I hope they actually consider the small and mid-sized business. Most of the small businesses in America were the ones who had the most impact from from what's been happening. So having some stability, some transparency, consideration for smaller businesses, because we are the ones who are innovating and coming up with the new ideas. And we all have different strengths. And we need each other to both get stronger. I'm a small business person. I've been working with the team in China for nine years. I love my team in China, and I feel like they love me, and we work together so well. So when things above us are causing so much chaos, it makes everything harder for all of us. And so I'm really hoping that these continued discussions and hopefully more cooperation will be better and make all of our lives a little easier," said Benike.
Stable US-China trade ties essential for small businesses to thrive: American entrepreneur
