{"id":278,"date":"2025-05-14T19:51:06","date_gmt":"2025-05-14T19:51:06","guid":{"rendered":"http:\/\/www.agencywebdesigners.com\/?p=278"},"modified":"2025-05-15T14:21:21","modified_gmt":"2025-05-15T14:21:21","slug":"colorado-businesses-welcome-detente-with-china-but-still-worry-about-the-future","status":"publish","type":"post","link":"http:\/\/www.agencywebdesigners.com\/index.php\/2025\/05\/14\/colorado-businesses-welcome-detente-with-china-but-still-worry-about-the-future\/","title":{"rendered":"Colorado businesses welcome d\u00e9tente with China, but still worry about the future"},"content":{"rendered":"

Gail Ross welcomes the 90-day pause on the 145% tariffs on goods from China. About half of the clothes sold by Krimson Klover,<\/a> the women\u2019s apparel company where she is the chief operating officer, are made in China.<\/p>\n

But what happens after the 90 days are up, Ross wonders. If the Trump administration re-imposes all the tariffs he announced on April 2, the total would be 46% on Vietnam, where Krimson Klover\u00a0<\/a>moved a third of its business when the president imposed tariffs during his first term in office.<\/p>\n

Before President Donald Trump unveiled his so-called reciprocal tariffs,<\/a> Krimson Klover, based in Boulder, was paying 7.5% on its imports from China.<\/p>\n

In a temporary halt to an escalating trade war, the U.S. agreed Monday to slash the levy on China from 145% to 30%<\/a>. China agreed to lower its tariff rate on U.S. goods to 10% from 125% while the two countries try to reach a longer-lasting deal.<\/p>\n

\u201cIt\u2019s great that this went down, but we\u2019re still looking at a 30% tariff that wasn\u2019t in our prices when set up (2025),\u201d Ross said. \u201cThe consumer is going to ultimately pay for it.\u201d<\/p>\n

While encouraged by the lower levy, Keaton Brown, who started a windshield wiper business with his brother, Kyler, said 30% is historically high. Even so, the brothers\u2019 business, The Windy Company,<\/a> will look into submitting more orders while the lower tariff is in place.<\/p>\n

\u201cI certainly expect some hiccups because I imagine there are a lot of companies in the same boat right now that will be ordering more products,\u201d Brown said.<\/p>\n

The Browns\u2019 4-year-old company delivers windshield wipers once or twice a year to subscribers. The wipers, made from 100% natural rubber, are manufactured in China.<\/p>\n

The Windy Company ships from a warehouse in Grand Junction to people in all 50 states. Brown said the business has been growing, but is putting any expansion plans on hold until it\u2019s clear what direction tariffs will take.<\/p>\n

At Krimson Klover, the scramble is on to get products on ships in time to beat the end of the 90-day stand down from the higher taxes on imports.<\/p>\n

\u201cWe\u2019re trying to get everything on a boat by Aug. 12,\u201d Ross said. \u201cEverybody and their brother are going to try to get on a boat by about Aug. 1.\u201d<\/p>\n

Other U.S. businesses are hurrying<\/a> to make sure their products can make it across the ocean before any jumps in the tariff rate. Ross expects the freight costs to rise.<\/p>\n

There\u2019s the uncertainty about being able to get goods out of China during the 90-day window. And, Ross said, there\u2019s not knowing what comes next. Krimson Klover has been working with a large customer who will get some of its orders during the pause on higher tariffs, but has other products set to arrive in October and November.<\/p>\n

\u201cWe have not yet decided what to do with that customer,\u201d Ross said. \u201cDo we go back to 145%, which in theory will happen in August? Or do we make a bet that\u2019s not going to happen and that\u00a0 this pause will be permanent?\u201d<\/p>\n

For now, Krimson Klover\u2019s producers in China, the company and retailers are absorbing the current cost increase.<\/p>\n

Ross said a friend just halted operations at a Colorado company that makes down jackets and rain wear after the Trump administration hiked the tariff to 145% on imports from China. She said other people she knows whose companies make hats and accessories are struggling.<\/p>\n

Ross believes Krimson Klover will hold on, but said the turmoil is taking a toll. The company has stopped hiring and stopped marketing.<\/p>\n