Trump’s China tariff shocks US importers. One CEO calls it ‘end of days’

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Employees of Learning Resources, an educational toy company, work at a warehouse in Vernon Hills, Illinois, on April 11, 2025. (AP Photo)
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Updated 13 April 2025
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Trump’s China tariff shocks US importers. One CEO calls it ‘end of days’

  • Over the years, American companies have set up supply chains that depend on thousands of Chinese factories
  • Now Trump is demanding that manufacturers return production to America, hurting American importers and Chinese factories they rely on

WASHINGTON: Rick Woldenberg thought he had come up with a sure-fire plan to protect his Chicago-area educational toy company from President Donald Trump’s massive new taxes on Chinese imports.
“When he announced a 20 percent tariff, I made a plan to survive 40 percent, and I thought I was being very clever,” said Woldenberg, CEO of Learning Resources, a third-generation family business that has been manufacturing in China for four decades. “I had worked out that for a very modest price increase, we could withstand 40 percent tariffs, which was an unthinkable increase in costs.”
His worst-case scenario wasn’t worst-case enough. Not even close.
The American president quickly upped the ante with China, raising the levy to 54 percent to offset what he said were China’s unfair trade practices. Then, enraged when China retaliated with tariffs of its own, he upped the levies to a staggering 145 percent.
Woldenberg reckons that will push Learning Resource’s tariff bill from $2.3 million last year to $100.2 million in 2025. “I wish I had $100 million,” he said. “Honest to God, no exaggeration: It feels like the end of days.”
‘Addicted’ to low-price Chinese goods
It might at least be the end of an era of inexpensive consumer goods in America. For four decades, and especially since China joined the World Trade Organization in 2001, Americans have relied on Chinese factories for everything from smartphones to Christmas ornaments.
As tensions between the world’s two biggest economies — and geopolitical rivals — have risen over the past decade, Mexico and Canada have supplanted China as America’s top source of imported goods and services. But China is still No. 3 — and second behind Mexico in goods alone — and continues to dominate in many categories.




Products of Learning Resources, an educational toy company whose products are manufactured in China, are shown at a showroom in Vernon Hills, Illinois, on April 11, 2025. (AP Photo)

China produces 97 percent of America’s imported baby carriages, 96 percent of its artificial flowers and umbrellas, 95 percent of its fireworks, 93 percent of its children’s coloring books and 90 percent of its combs, according to a report from the Macquarie investment bank.
Over the years, American companies have set up supply chains that depend on thousands of Chinese factories. Low tariffs greased the system. As recently as January 2018, US tariffs on China averaged just over 3 percent, according to Chad Bown of the Peterson Institute for International Economics.
“American consumers created China,” said Joe Jurken, founder of the ABC Group in Milwaukee, which helps US businesses manage supply chains in Asia. “American buyers, the consumers, got addicted to cheap pricing. And the brands and the retailers got addicted to the ease of buying from China.”
Slower growth and higher prices
Now Trump, demanding that manufacturers return production to America, is swinging a tariff sledgehammer at the American importers and the Chinese factories they rely on.
“The consequences of tariffs at this scale could be apocalyptic at many levels,” said David French, senior vice president of government affairs at the National Retail Foundation.
The Yale University Budget Lab estimates that the tariffs that Trump has announced globally since taking office would lower US economic growth by 1.1 percentage points in 2025.
The tariffs are also likely to push up prices. The University of Michigan’s survey of consumer sentiment, out Friday, found that Americans expect long-term inflation to reach 4.4 percent, up from 4.1 percent last month.
“Inflation’s going up in the United States,” said Stephen Roach, former chairman of Morgan Stanley Asia and now at Yale Law School’s China Center. “Consumers have figured this out as well.”
“No business can run on uncertainty”
It’s not just the size of Trump’s tariffs that has businesses bewildered and scrambling; it’s the speed and the unpredictability with which the president is rolling them out.
On Wednesday, the White House said the tariffs on China would hit 125 percent. A day later, it corrected that: No, the tariffs would be 145 percent, including a previously announced 20 percent to pressure China to do more to stop the flow of fentanyl into the United States.
China in turn has imposed a 125 percent tariff on the US effective Saturday.
“There is so much uncertainty,” said Isaac Larian, the founder of MGA Entertainment, which makes L.O.L. and Bratz dolls, among other toys. “And no business can run on uncertainty.”
His company gets 65 percent of its product from Chinese factories, a share he is trying to winnow down to 40 percent by the end of the year. MGA also manufactures in India, Vietnam and Cambodia, but Trump is threatening to levy heavy tariffs on those countries, too, after delaying them for 90 days.
Larian estimates that the price of Bratz dolls could go from $15 to $40 and that of L.O.L. dolls could double to $20 by this year’s holiday season.
Even his Little Tikes brand, which is made in Ohio, is not immune. Little Tikes depends on screws and other parts from China. Larian figures the price for its toy cars could rise to $90 from a suggested retail price of $65.
He said MGA would likely cut orders for the fourth quarter because he is worried that higher prices will scare off consumers.
Calling off China production plans
Marc Rosenberg, founder and CEO of The Edge Desk in Deerfield, Illinois, invested millions of dollars of his own money to develop $1,000 ergonomic chairs, which were to start production in China next month.
Now’s he’s delaying production while exploring markets outside the US, including Germany and Italy, where his chairs wouldn’t face Trump’s triple-digit tariffs.He said he wants to see how the situation plays out.




The US flag flutters at the US consulate general in Shanghai on April 12, 2025. (AFP)

He had looked for ways to make the chairs in the United States and had discussions with potential suppliers in Michigan, but the costs would have been 25 percent to 30 percent higher.
“They didn’t have the skilled labor to do this stuff, and they didn’t have the desire to do it,” Rosenberg said.
Making Chinese imports go ‘kaput’
Woldenberg’s company in Vernon Hills, Illinois, has been in the family since 1916. It was started by his grandfather as a laboratory supply company and evolved over the years into Learning Resources.
The company specializes in educational toys such as Botley: The Coding Robot and the brainteaser Kanoodle. It employs about 500 people — 90 percent in the United States — and makes about 2,400 products in China.




Products of Learning Resources, an educational toy company whose products are manufactured in China, are shown at a showroom in Vernon Hills, Illinois, on April 11, 2025. (AP Photo)

Woldenberg is reeling from the size and suddenness of Trump’s tariffs.
“The products I make in China, about 60 percent of what I do, become economically unviable overnight,” he said. “In an instant, snap of a finger, they’re kaput.”
He described Trump’s call for factories to return to the United States as “a joke.”
“I have been looking for American manufacturers for a long time ... and I have come up with zero companies to partner with,” he said.
The tariffs, unless they’re reduced or eliminated, will wipe out thousands of small Chinese suppliers, Woldenberg predicted.
That would spell disaster for companies like his that have installed expensive tools and molds in Chinese factories, he said. The stand to lose not only their manufacturing base but also possibly their tools, which could get caught up in bankruptcies in China.
Learning Resources has about 10,000 molds, weighing collectively more than 5 million pounds, in China.
“It’s not like you just bring in a canvas bag, zip it up and walk out,” Woldenberg said. “There is no idle manufacturing hub standing fully equipped, full of engineers and qualified people waiting for me to show up with 10,000 molds to make 2,000 products.”
 


Singapore PM urges voters to re-elect his cabinet to deal with US, China

Updated 59 min 13 sec ago
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Singapore PM urges voters to re-elect his cabinet to deal with US, China

  • PM Wong urges voters to stick with his team in face of US tariffs, US-China tensions
  • Last day of campaigning ahead of May 3 election

SINGAPORE: Singaporeans need to vote for candidates who have built up trust and close relationships with counterparts in the US and China, said Prime Minister Lawrence Wong on Thursday, urging voters to re-elect his cabinet at a May 3 poll.
Addressing a 1.4 million-strong labor union on the last day of campaigning, Wong warned of economic turbulence and job losses if US tariffs slow global growth. His government has warned the trade-reliant economy may face a possible recession.
“We must expect more pressure on us and to navigate these pressures, it will take experience and skill. It will take people in government who have built up trust and close relationships with their counterparts in both America and China,” Wong said.
He said voters needed to re-elect his whole team to effectively deal with these economic headwinds.
“I have backups, I have reserves, sure. But everyone knows that the team cannot function at the same level. It’s the same in any organization, and it will be so in our next cabinet if we end up with such a loss,” he said, referring to the possible loss of his deputy prime minister.
Singapore’s ruling People’s Action Party, in power since 1959, is widely expected to be easily re-elected, but there is growing unhappiness with its governance in the face of rising costs of living.
Deputy Prime Minister Gan Kim Yong was nominated at the 11th hour in a hotbed contest in a ward in northeast Singapore in an effort to stop the main opposition Workers’ Party, which won 10 seats in the last parliament.
Campaigning in recent days has zeroed in on Gan being new to the area, after an incumbent ruling party candidate called the opposition team strangers. The opposition fired back, asking if Gan was the real stranger to the constituency.
Wong has thrown his weight behind Gan, calling him his “taskforce man” because Gan co-headed the COVID-19 taskforce and is now chairing the “economic resilience” taskforce dealing with the impact of US tariffs.
“The key person in charge of this work is no stranger to you. He is no stranger to the whole of Singapore,” Wong said on Thursday.
This is the first electoral test for Wong, who took over from long-time premier Lee Hsien Loong last year as leader of the People’s Action Party.
Six political parties and an independent candidate have rallies scheduled for Thursday night.
Parties get to fire their last salvos on Thursday before 2.76 million voters go to a compulsory poll on Saturday after a short nine-day campaign season. Friday is designated as a “cooling off” day, meant for voters to decide on their ballot, and parties are not allowed to campaign.


Former VP Harris says Trump’s America is ‘self-serving’

Updated 58 min 10 sec ago
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Former VP Harris says Trump’s America is ‘self-serving’

  • Critics have been appalled at what they say is a vengeful administration carelessly overstepping democratic and constitutional norms
  • Recent polls have shown a majority of the country is becoming disenchanted with the political and economic tumult

SAN FRANCISCO: Former US vice president Kamala Harris hit out at Donald Trump and his backers on Wednesday, in her first major speech since losing November’s election.
The defeated Democrat told supporters the apparent “chaos” of the last three months was actually the realization of a long-cherished plan by conservatives who are using Trump to twist the United States to their own advantage.
“What we are, in fact, witnessing is a high velocity event, where a vessel is being used for the swift implementation of an agenda that has been decades in the making,” she told an audience in San Francisco.
“An agenda to slash public education. An agenda to shrink government and then privatize its services. All while giving tax breaks to the wealthiest.
“A narrow, self-serving vision of America where they punish truth-tellers, favor loyalists, cash in on their power, and leave everyone to fend for themselves.”
Trump’s first 100 days in power have been marked by a dizzying array of executive orders tackling everything from immigration to foreign aid to showerhead pressure.
Critics have been appalled at what they say is a vengeful administration carelessly overstepping democratic and constitutional norms, including clashing with the courts.
While Trump’s supporters have cheered some of the rapid-fire changes, recent polls have shown a majority of the country is becoming disenchanted with the political and economic tumult, particularly from his oft-changing tariffs.
Harris, who is thought to be mulling a run for the governorship of her home state of California in 2026 or a possible White House run in 2028, has largely stayed out of the limelight since leaving Washington in January.
On Wednesday she was a guest speaker at an event run by Emerge, a political organization that recruits and trains Democratic women to run for public office.
She told the crowd that Trump was targeting universities and courts because he wanted to cow the opposition.
“President Trump, his administration, and their allies are counting on the notion that fear can be contagious,” she said.
“They are counting on the notion that, if they can make some people afraid, it will have a chilling effect on others.”
But, she said, there were judges, academics, politicians and regular people who were standing up to the government.
“Fear isn’t the only thing that’s contagious. Courage is contagious,” she said.
“The courage of all these Americans inspires me.”


South Korean prosecutors indict ex-President Yoon for abuse of authority

Updated 01 May 2025
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South Korean prosecutors indict ex-President Yoon for abuse of authority

  • The indictment is in addition to an ongoing trial on insurrection charges
  • The latest indictment is without arrest, Yonhap said, citing the prosecutor’s office

SEOUL: South Korean prosecutors have indicted former President Yoon Suk Yeol for abuse of authority, Yonhap said on Thursday.
The indictment is in addition to an ongoing trial on insurrection charges, brought against Yoon over his brief imposition of martial law in December.
The latest indictment is without arrest, Yonhap said, citing the prosecutor’s office. An official at the prosecutor’s office could not be immediately reached for comment.


Indian FM says Kashmir attackers ‘must face justice’

Updated 01 May 2025
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Indian FM says Kashmir attackers ‘must face justice’

NEW DELHI: India’s foreign minister said Thursday that those who planned and carried out an attack in Kashmir last week that left 26 men dead “must be brought to justice.”
New Delhi blames Pakistan for the gun attack on civilians at the tourist site of Pahalgam in Indian-administered Kashmir on April 22.
Islamabad has rejected the charge and both countries have since exchanged gunfire in Kashmir and issued a raft of tit-for-tat punitive diplomatic measures.
“Its perpetrators, backers and planners must be brought to justice,” India’s top diplomat Subrahmanyam Jaishankar said in a statement following a conversation with US Secretary of State Marco Rubio on Wednesday evening in which they discussed the attack.
Rubio also spoke to Pakistan Prime Minister Shehbaz Sharif, and in a US readout of the call, told Sharif of the “need to condemn the terror attack” in Kashmir.
Indian and Pakistani soldiers fired at each other overnight along the Line of Control, the de facto border in contested Kashmir, the Indian army said.
It was a seventh straight night gunfire was reported by India.
“During the night... Pakistan Army posts initiated unprovoked small-arms fire across the Line of Control opposite Kupwara, Uri and Akhnoor,” the army said in a statement.
“These were responded proportionately by the Indian Army.”
There were no reported casualties and there was no immediate confirmation from Pakistan.
Indian police have issued wanted posters for three men accused of carrying out the Kashmir attack — two Pakistanis and an Indian — who they say are members of the Pakistan-based Lashkar-e-Taiba group, a UN-designated terrorist organization.
Indian Prime Minister Narendra Modi gave the military “complete operational freedom” to respond to the attack during a closed-door meeting on Tuesday, a senior government source told AFP.
Pakistan’s government has denied any involvement in the shooting and vowed that “any act of aggression will be met with a decisive response.”
 


Stay as long as you want, Trump says as chief disruptor Elon Musk eyes exit

Updated 01 May 2025
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Stay as long as you want, Trump says as chief disruptor Elon Musk eyes exit

  • At a Cabinet meeting, Trump hinted at Musk giving up his DOGE role “to get back home to his cars”
  • Musk's Tesla car company had been hit by boycott calls over his role in gutting the US bureaucracy

WASHINGTON: US President Donald Trump on Wednesday said Tesla boss Elon Musk could stay working for the White House as long as he wanted but understood the tycoon wanted to get back to his businesses.
Musk last month said he will step back from his role as the unofficial head of the administration’s cost-cutting “Department of Government Efficiency” to focus more on his troubled Tesla car company.
“The vast majority of the people in this country really respect and appreciate you,” Trump told Musk during a White House cabinet meeting, which could be his last before giving up his DOGE role.
“And you know you’re invited to stay as long as you want,” Trump said, though added that Musk may want “to get back home to his cars.”
Musk, the world’s richest person, has seen his Tesla car company, which is the major source of his wealth, suffer significant brand damage from his political work.
Tesla showrooms have been hit by vandalism and boycott calls in Europe and the United States in a backlash against public service cuts introduced by Musk in his role as a close adviser to Trump.
“You really have sacrificed a lot. They treated you very unfairly,” Trump said of opponents to Musk.
“They did like to burn my cars, which is not great,” Musk responded.
The Wall Street Journal on Wednesday reported that Tesla’s board had begun procedures several weeks ago to find a successor to Musk as CEO.
The outlet reported — citing people familiar with the matter — that the board had met with Musk and told him that he needed to spend more time with the company, rather than in Washington.
David Sacks, a close Musk ally who is also a member of the Trump administration, last week said that Musk would not be leaving DOGE but reducing his role.
This was the same plan he carried out during his takeover of Twitter in 2022, he said.
“Once he felt like he had a mental model and he had the people in place that he trusted, he can move to more of a maintenance mode,” Sacks told the All-In podcast.