Strung Out by Tariffs: How Small Creators Are Paying the Price for Trade Policies

Back in 2017, Christina and Ian Lacey made a bold decision to leave their stable careers and pursue a dream that blended music and craftsmanship. From their home in Denver, they launched Retuned Jewelry—a niche business that recycles donated guitar and bass strings into unique, handmade accessories. Their venture resonated with music lovers nationwide, bringing in an average of $360,000 a year, largely from appearances at music and arts festivals across the country.

But that success is now in jeopardy. Recently raised U.S. tariffs on Chinese imports—now at a staggering 145%—have put significant strain on the small business. Although the strings they use are donated, critical components like clasps, chains, and beads are sourced from China due to the lack of suitable U.S. alternatives. As costs rise, the Laceys have already been forced to increase prices to stay afloat, even before the full weight of the tariffs takes effect.

Small businesses like Retuned Jewelry often lack the financial buffers of larger companies, making them especially vulnerable to sudden cost increases. John Arensmeyer, head of the Small Business Majority advocacy group, notes that these enterprises typically operate with tighter margins and minimal bargaining power. He warns that tariffs are pushing small business owners into a corner, where they may be forced to cut jobs, slow expansion, or shut down completely.

The Laceys’ struggle echoes that of other small manufacturers. The Mitchell Group, a family-owned textile company in Illinois, is similarly burdened. Chief Operating Officer Ann Brunett explains that paying tariffs upfront ties up large sums of money, especially as imported inventory sits idle. Even though the company pulls in nearly $10 million annually and employs 30 people, its financial flexibility is shrinking under the pressure of rising costs. President Bill Fisch has explored sourcing from countries like India and Vietnam, but says China’s capacity and pricing remain unmatched.

While tariffs aim to encourage American-made goods, experts warn this goal won't be realized overnight. The U.S. textile and apparel industry has been in decline for decades, and rebuilding domestic supply chains would require long-term investment. Sheng Lu, a professor at the University of Delaware, points out that some key raw materials simply aren’t made in the U.S. anymore, making it nearly impossible for businesses like the Mitchell Group or Retuned Jewelry to pivot quickly or effectively.

As policymakers push for economic reshoring, small businesses are left to navigate a system that feels rigged against them. For the Laceys, what began as a dream forged from creativity and community now hangs in the balance—not because of demand, but because of trade decisions made far beyond their control.