How US Tariffs Could Bankrupt Millions of Small Businesses, Warns Flexport CEO
Publish Time: 2025-04-22 Origin: Site
Tariffs Could Wipe Out Main Street": Flexport CEO Sounds Alarm
The Small Business Apocalypse
In a viral X (Twitter) thread, Flexport CEO Ryan Petersen revealed:
35% weekly plunge in China-US shipments on Flexport’s platform (industry-wide estimates: 50%)
**1trillioneconomicexposure∗∗—equivalenttohalftheannualretailvalueofUSimportsfromChina(1trillioneconomicexposure∗∗—equivalenttohalftheannualretailvalueofUSimportsfromChina(600B imports → $2T retail sales)
SMBs hardest hit: Most lack viable alternatives as manufacturers in Vietnam/elsewhere prioritize large orders, leaving small-batch producers stranded.
"When these brands go bankrupt, they’ll be acquired by their Chinese factories—completing China’s control of the customer-facing supply chain."
— Ryan Petersen
Why This Is a Ticking Time Bomb
Financial Domino Effect:
SMBs operate on razor-thin margins, relying on inventory financing.
Tariffs disrupt cash flow, forcing closures before alternative suppliers are found.
China’s Vertical Integration:
Failed US brands may be bought by Chinese manufacturers, granting them direct access to Western consumers—a historic weak spot in China’s export model.Policy Paradox:
Tariffs aimed at "protecting" US industry could accelerate Chinese dominance of high-value brand ownership.
Industry Backlash Grows
US Fashion Industry: The AAFA warns of price hikes + job losses, with footwear tariffs already costing consumers $1.4B annually.
Economic Tipping Point: Petersen predicts tariffs will be scrapped eventually—"It’s not if, but when."