US pet stores and main street shops caught in trade war crossfire

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Selling everything for pets from treats and tennis balls, Noelie Rickey is struggling with the consequences of US President Donald Trump’s trade policies.

In 2022, she and her business partners, took over a small speciality shop for dog supplies – The Dog Park – in the picturesque old town of Alexandria in the state of Virginia, close to the capital Washington.

Back then, sales were at their peak, says Rickey, a former veterinary nurse. “Now they’re at their lowest point.”

There are many reasons for this though what worries her most is Washington’s tariff war with almost the entire world.

Trump imposed blanket tariffs of at least 10% on all imports to the country, plus additional levies for a host of trading partners, triggering significant turbulence in the stock and financial markets in April.

While he suspended many of the planned tariffs to allow for trade negotiations, special tariffs of up to 145% remain in place on Chinese goods and Beijing retaliated with tariffs of up to 125% on US products.

Trade war takes toll on small businesses and households

Trump’s tariffs, with the stated aim of bringing manufacturing jobs back to the US, are driving people worldwide to rethink their relations with Washington.

The impact remains unclear as it may take a while for the tariffs to reach supply chains and shoppers. But many are worried about prices rising and increasing reports of hoarding.

According to calculations by Yale University, the tariffs could lead to an average long-term loss of purchasing power of $2,700 per US household in 2025.

While Trump says the trade conflict will lead the US to a “golden age,” it is hitting small businesses such as Rickey’s particularly hard.

She hasn’t raised her prices yet, but she won’t be able to hold out long, she says, as she imports many of her products, with food mainly from Canada and plastic or fabric toys, dog leashes and other accessories from China.

Many of the retailers Rickey works with are pretty small and come from North America, she says. They are not large chains or online retailers that focus primarily on quantity.

But even her business partners’ products often come from China. “If I tried to buy only American products, the shop would look very different,” says Rickey.

Ultimately, for most of her customers, it is the price that counts, she says, especially as the price of everyday products is soaring.

The four-legged end consumer has practical needs, she says. “If a dog breaks a toy every fortnight, they’re more likely to reach for the $10 model than the expensive $40 item.”

Whether directly or indirectly, China is a major supplier of cheap consumer goods to the US, whether for major retailers such as Walmart and Amazon or neighbourhood stores offering toys, clothing, electronics or household items.

“Many entrepreneurs depend on Chinese supply chains. Whether it’s to keep their business running or to fill their warehouses,” says Alexis D’Amato from the Small Business Majority advocacy group, which represents 85,000 small businesses from a wide range of sectors across the country.

A small business can include up to 500 workers, according to the US government agency SBA, while the Small Business Majority draws the line at around 30 staff members.

Even though the reality in many places is characterized by structural change, these owner-managed shops embody the US ideal of main street, where people know each other well, unlike the powerful, anonymous Wall Street.

It’s an ideal deeply rooted in the nation’s self-image, on both sides of the political aisle.

But such small traders are also part of global supply chains and unlike larger corporations, they have little cushion for price increases or ways to alter their suppliers, says D’Amato.

Trump’s tariff policy is ‘a slap in the face’

She slams Trump’s trade policy lurch, saying, “It feels like there are new tariffs or changes every other day.” That makes it almost impossible to plan for the longer term.

They are a question of survival for Beth Benike of Minnesota who told CNN and CBS News about the struggles of her family business, selling baby products made in China.

A new batch worth $160,000 was ready for dispatch when the tariffs rose to 125%. Rather than paying $30,000 to import the goods, her imports were suddenly going to cost $200,000 – money she doesn’t have. Now, the goods are going to cost even more.

Benike is not only worried about her employees. Her own home is also at stake as it secures a business loan.

Then there are the financial markets. In the US, many people’s retirement provisions are closely linked to the stock market. Often those who are self-employed rely on their stock portfolio.

When markets fluctuate, their future fluctuates too, says D’Amato.

Trump’s customs policy is “a slap in the face” for many of her association members, she says. What they need is support.

She does not accept the government’s argument that tariffs will ultimately strengthen domestic production. “There are enough other ways,” says D’Amato.

Rickey agrees. If you want to promote domestic production, you have to invest in subsidies, locations and skilled labour, she says.

“People who can operate a sewing machine and produce large numbers of dog toys don’t exist here,” she says. And considering Trump’s tough migration policy, she adds, “If they do, then we’ll just deport them as quickly as possible.”

What Rickey wants to see is a coherent approach from the government. Customs duties are only one part, she says.

Sales at The Dog Park have been struggling for several reasons. The end of post-pandemic support and the wave of mass layoffs at federal agencies have taken a toll—especially in this region, where many public sector workers live in Virginia and commute to Washington DC.

Tourism in Alexandria has also dropped significantly, leading to a noticeable decline in foot traffic.

Still, Rickey remains pragmatic. Even before Trump returned to office, she had begun diversifying her business, introducing dog daycare and pet grooming services.

Cats are also welcome.