Trade War Pain Hits Small Startups

The video discusses the impact of tariffs on small businesses, particularly hardware startups reliant on Chinese manufacturing. These companies face challenges due to their inability to offset costs like larger firms. Some are stockpiling inventory to delay price increases, while others monitor competitors' actions. The tariffs force startups to divert resources from growth to survival strategies, potentially pricing them out of the market.

What is a major challenge for small businesses facing tariffs compared to larger companies?

• They lack the leverage to offset costs.

• They can easily absorb additional costs.

• They have more product lines to manage.

• They have a larger market share.

How might tariffs impact a California-based company mentioned in the video?

• They will reduce their product quality.

• They will expand their product lines.

• They might be priced out of the market.

• They will increase their workforce.

What is one strategy small businesses are using to handle tariff impacts?

• Expanding to new markets.

• Increasing workforce.

• Stockpiling inventory.

• Reducing product quality.

What are small businesses waiting to see from their larger competitors?

• Whether they will lower their prices.

• Whether they will change their product lines.

• Whether they will absorb the tariff costs.

• Whether they will increase their workforce.

What is a significant issue for small businesses when dealing with tariffs?

• They have a large market share.

• They must divert resources from other areas.

• They can easily pass costs to consumers.

• They have too many resources.