Small and mid-sized firms — which buy from China and sell to big retailers — are absorbing the cost of the tariffs.
Skip West, founder of Maxsa Innovations, this week at his warehouse in Lorton, Va., with a laser-guided parking aid he imports from China. By Jeanne Whalen Jeanne Whalen Reporter covering business around the world Email Bio Follow May 17 at 9:03 AM LORTON, Va. — Maxsa Innovations, a small business selling electronic gadgets on the outskirts of Washington, was already reeling from the U.S.-China trade war when it realized it had a third superpower to manage: Amazon.
With the Internet driving ruthless price competition among Amazon, Walmart, Home Depot and others, large retailers are loath to pay more or to raise their own prices. That leaves importers of Chinese goods caught between the trade war and Americans’ quest for the best possible deal. Scosche Industries, an Oxnard, Calif., electronics maker, says tariffs cost the company about half of its profits last year. Profit-sharing payments to employees have fallen to close to zero, and the company is desperately attempting to shift production from China to Vietnam, chief executive Roger Alves said.
A Park Right, a laser-guided parking aid, made by Maxsa Innovations. West, a gizmo enthusiast named Small Business Executive of the Year by the Consumer Technology Association in 2016, founded Maxsa in 2003. He and his wife, Beth Citrin, run the company from their home in Northern Virginia, where they employ six people.
Some companies use Amazon’s platform to sell their wares directly to consumers. Maxsa has a more traditional arrangement, with Amazon buying goods from it and reselling them.
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