Trade war hits small American businesses hard

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Added On September 21, 2019

INTRO
 
In the United States, an outdoor sports company has faced serious challenges, as one of the many businesses losing out as a result of the U.S.-China trade war over the past year.
Let's take a look.
 
PKG
 
Krimson Klover, a small, boutique women's clothing business, located on the foothills of Colorado's Rocky Mountains in the U.S., is losing revenue due to the U.S.-China trade tensions.
 
SOUNDBITE 1(ENGLISH): RHONDA SWENSON, Krimson Klover's CEO
 
"We are friends with quite a few people in the outdoor industry, and a lot of those companies are shoe makers, for instance, or glove makers, I know everyone's trying to move some of their production, but you can't move all of your production in one company."
 
About 95 percent of Krimson Klover's products are made in China. The company has four factories in China for manufacturing its clothing, and the business has seen big growth in recent years.
 
SOUNDBITE 2(ENGLISH): RHONDA SWENSON, Krimson Klover's CEO
 
"Once taxes are in place, does anyone ever go ahead and take them away? So, you know, I'm feeling these tariffs. We're expecting the worst, and we're assuming that they may be here for the long run. And so you know, we have to run a business, we have to make money, we have to have margins, and we're doing what we can do, [to?] figure out how to move forward with the prices as they are today."
 
 
In June, Krimson Klover's chief operating officer testified about the tariff impact before the Federal Trade Commission, representing 10 small businesses while close to 300 large companies were heard.
 
Similarly, orders have also stalled for the small factories in China that Krimson Klover uses for production.