LANSING, Mich. — Small business owners are cautiously optimistic after the United States and China agreed to pause their ongoing tariff war, though many remain uncertain about long-term impacts.
- A pause in tariffs between the U.S. and China is seen as a 'positive' but 'short-term' solution to a local business owner
- The change in tariffs will shift beginning Wednesday
- Watch the video below to hear how a business owner is adjusting and one expert explaining the challenges for retailers
WATCH: "EVERYBODY'S SHELL-SHOCKED": SMALL BUSINESSES REACT TO US-CHINA TARIFF REDUCTION
"The pause is positive. But it's a short-term solution," said Jessy Gregg, owner of Seams Fabrics in East Lansing. Gregg, who began her business in East Lansing, has a second location in Kalamazoo.
Gregg is currently moving her East Lansing store to Old Town Lansing, but that's about the only thing she's certain about after the U.S. and China paused their tariff war on Monday.
Starting Wednesday, tariffs on Chinese goods will fall from 145% to 30%, while China will cut tariffs on American imports from 125% to 10%.
Gregg says the uncertainty makes planning difficult.
"We're just trying to keep orders as small as possible. Yeah everybody's just kind of shell-shocked," Gregg said.
Despite the reduction in tariffs, some business owners like Gregg remain skeptical about the long-term outlook.
"It's hard to really hold on to that good news," said Vic Veda, spokesperson for the Michigan Retailers Association.
Veda explained that tariffs can create significant challenges for small businesses trying to plan ahead.
WATCH: US AND CHINA STEP BACK FROM SKY-HIGH TARIFFS, AGREE TO 90-DAY PAUSE
"It's a real hard place for small businesses to be in between having to choose to front-load inventory if they can before tariffs go into effect, or waiting to see how long tariffs may impact the things that they're looking to purchase," Veda said.
As Gregg prepares for her upcoming move, she's developing contingency plans for her business.
"I'm an impulsive person so it was time [to move]," Gregg said.
With the move coming soon, she's now threading the needle in an uncertain time of tariffs.
"If things get bad-bad, then we can always just turn to education and teach people to do more with what they have," Gregg said.
This story was reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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