Overview

• President Trump’s broad tariffs on most imports, implemented in April 2025, have created significant uncertainty for U.S. businesses, particularly small firms dependent on global supply chains.
• Steven Borrelli, CEO of CUTS Clothing, appeared on CNN to request a 90-day adjustment period to transition away from Chinese imports and adapt to the new tariff regime.
• Borrelli described the tariffs, which can reach up to 145%, as a de facto embargo, warning they could devastate small businesses lacking sufficient cash reserves to manage the sudden cost increases.
• While supporting the goal of reviving U.S. manufacturing, Borrelli highlighted the outdated state of domestic production infrastructure and the need for significant investment to rebuild capacity.
• Despite the administration’s intent to use tariffs as leverage for new trade agreements, no reciprocal trade deals have been secured to date, leaving businesses in prolonged uncertainty.