When President Trump reduced tariffs on Chinese imports this month, the stock market cheered, and recession fears eased. But for small business owners like Carina Hamel and Robby Ringer, whose company Bivo imports from China, the relief feels bittersweet.

Bivo, operating out of a former corset factory in Richmond, Vermont, specializes in stainless steel water bottles equipped with a patented nozzle—perfect for athletes on the go. Just as the five-year-old business was nearing profitability, the crippling tariffs put their future at risk.

Even with the reduction of tariffs from an outrageous 145% to 30% this month, the impact remains dire for Bivo's bottom line. "It's a relief but like comparing a flood to a tsunami—still catastrophic," Ringer stated, highlighting that different models of their bottles are hit with tariffs ranging from 37% to a staggering 47%.

Contrary to Trump's claims that foreign shippers bear the brunt of tariffs, Bivo—as with all importers—pays these fees directly at U.S. ports. Ringer stressed, "This has a massive impact on our cash flow and forces us to rethink our entire strategy."

Currently, Bivo anticipates a staggering 30% dip in sales, driven by retailers buying less gear amid widespread economic uncertainty. This trend isn’t just isolated to small firms; even giants like Walmart confess they can't absorb all the tariff pressures.

Ebehi Iyoha, a Harvard Business School professor, warns that small businesses like Bivo lack the financial cushion and lobbying power of larger corporations, making them far more vulnerable to economic shifts.

Recent surveys from the National Federation of Independent Business reveal a worrying trend: small business owners have lowered their sales expectations for four consecutive months, thanks to the tariffs jeopardizing essential supply chains.

Fortunately for Hamel and Ringer, they made a timely gamble, importing 50,000 bottles just days before the tariffs hit. However, when the rates skyrocketed, they had to halt new imports due to financial constraints, despite their commitment to purchase an additional 30,000 bottles from their Chinese supplier.

The married duo, along with their six employees, sprang into action. Hamel traveled to Europe to explore new markets but soon realized the hurdles. "I feel optimistic we can survive, but it's going to be really tough," she admitted during a challenging trip to England.

After returning home, Ringer flew to China, negotiating with their supplier Haers for better payment terms. Though the cost per bottle remained unchanged, the additional time to pay offered much-needed flexibility.

Amid these trials, Ringer noticed the stark reality at the warehouse: it was overflowing with delayed shipments from other customers trying to avoid the enormous tariffs, showcasing the broader chaos affecting many in the industry.