Iraq War Veteran Says Trump’s Tariffs Are Destroying Her Baby Products Company: Beth Benike, an Iraq War veteran and founder of the Minnesota-based startup Busy Baby, is making headlines after revealing that former President Donald Trump’s newly implemented tariffs on Chinese imports are threatening to destroy her small business. These tariffs, which surged as high as 145%, are part of Trump’s intensified efforts to shift U.S. manufacturing away from China. But for small businesses like Benike’s, the consequences have been severe and immediate.
Benike built Busy Baby from the ground up after leaving the military. Her company’s flagship product—a silicone placemat that sticks to highchairs and prevents baby toys from falling—has become popular among parents across the U.S. But manufacturing it in the U.S. wasn’t viable, so she, like many entrepreneurs, turned to China for affordable, high-quality production. Now, the steep tariffs have made importing her own product financially unsustainable.
Iraq War Veteran Says Trump’s Tariffs Are Destroying Her Baby Products Company
Beth Benike’s story is more than a business headline—it’s a snapshot of the real-world fallout from sweeping trade policies. While tariffs may aim to bring jobs back home, they often catch small business owners in the crossfire. The conversation around tariffs should not only focus on economics but also on the people they affect—innovators, veterans, parents, and job creators. As policymakers shape the future of U.S. trade, it’s essential to listen to voices like Benike’s. Tariffs might aim to strengthen American industry, but if they bury the very entrepreneurs who represent the American Dream, what are we really protecting?
| Aspect | Details |
|---|---|
| Business Owner | Beth Benike, U.S. Army Veteran |
| Company | Busy Baby |
| Product | Silicone placemats for infants |
| Manufacturing Origin | China |
| Tariff Increase | From ~30% to 145% |
| Impact | Potential closure of business |
| Website | https://busybabymat.com |
The Tariff Trap: How We Got Here
Tariffs are taxes on imports. While often used to protect domestic industries, they can also backfire. During his first term, Donald Trump launched a trade war with China, arguing that aggressive tariffs would level the playing field for American manufacturers. His renewed political campaign includes plans to expand those tariffs across a broader range of goods—including baby products, electronics, and consumer essentials.
According to The Guardian, Benike expected manageable duties—about 20%–30%. But the abrupt jump to 145% left her blindsided.
“I’m being crushed,” Benike said in a social media video that went viral. “I’m terrified—not just for my business, but for every small business owner in this country.”
And she’s not alone.
The Ripple Effect of Trump’s Tariffs Are Destroying Her Baby Products Company
Baby products are a $12 billion industry in the U.S., and over 90% of these items are manufactured in Asia, particularly China, according to Consumer Reports. The cost of relocating production to the U.S. or other countries is high, especially for companies that don’t have the scale of giants like Graco or Fisher-Price.
For Busy Baby, moving manufacturing stateside would require nearly $1.4 million in machinery and setup costs—compared to less than $500,000 in China. Worse, if she tries to import the equipment, it would be subject to the same 145% tariff.
“We don’t have the infrastructure in the U.S. to make this cost-effective,” Benike explained. “It’s not just labor—it’s the specialized machinery and materials that aren’t available here.”
The High Cost of Tariffs: Data and Consequences
Let’s put this in perspective:
- Tariff Impact: A $10 item now costs $24.50 to import due to a 145% tariff.
- Inflation Link: The Peterson Institute for International Economics estimates that tariffs imposed during Trump’s first term raised consumer costs by over $57 billion.
- SMBs at Risk: According to the Small Business Administration (SBA), over 30 million small businesses operate in the U.S.—and many of them depend on imported components or finished goods.
A Step-by-Step Look at Benike’s Options (and Why None Are Easy)
1. Move Manufacturing Out of China
- Reality Check: Countries like Vietnam, India, and Mexico are alternatives, but they lack the specialized infrastructure and scalability that China offers for baby products.
- Cost Implication: New relationships, tooling, and logistics can delay production for 12+ months and increase costs by up to 40%.
2. Reshore to the U.S.
- Obstacle: U.S. factories are either not equipped or too expensive.
- Workforce Issues: The U.S. has a shortage of skilled labor in precision baby product manufacturing.
3. Use a Third-Party Logistics (3PL) or Foreign Trade Zones
- Partial Solution: She could delay the tariff by using bonded warehouses or route products through a lower-tariff country.
- Risky Strategy: Customs violations and increased red tape.
4. Crowdfunding and Community Support
- Benike has turned to GoFundMe and loyal customers for help.
- She’s also encouraging supporters to buy direct via her official site to avoid additional platform fees from large retailers.
Real Stories from Real Entrepreneurs
Beth Benike’s case is a powerful illustration of policy consequences—but she’s far from alone. Here are similar stories:
- Little Nomad, a children’s play mat brand, halted expansion due to new import fees.
- Green Sprouts, an eco-friendly baby gear company, reported a 35% profit margin dip after tariffs.
- The National Retail Federation (NRF) has repeatedly warned that tariffs disproportionately hurt small businesses that lack the leverage of large corporations.
What Can Small Businesses Do Now?
Here are practical strategies for surviving tariff volatility:
Audit Your Supply Chain
- Map every supplier and manufacturing partner.
- Identify tariff codes (HTS codes) for each component.
Explore Nearshoring
- Countries like Mexico may offer tariff-free alternatives under USMCA.
- Consider working with sourcing agencies who specialize in LATAM manufacturing.
Apply for Tariff Exclusions
- The Office of the United States Trade Representative (USTR) occasionally offers exemption windows.
Join a Trade Coalition
- Associations like the American Apparel & Footwear Association and [SBA] offer advocacy and resources.
- Group lobbying has helped some industries win tariff relief.
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Frequently Asked Questions (FAQs)
Q: Are Trump’s tariffs still in effect or new?
A: Some tariffs from Trump’s first term remain. His new campaign proposes significantly expanding these, with rates as high as 60–100% for imports from “countries of concern” like China.
Q: Why are small businesses more affected?
A: Unlike large corporations, small businesses don’t have diversified supply chains, lobbying power, or the cash flow to absorb unexpected costs.
Q: Can Beth Benike move production to the U.S.?
A: Not easily. The cost of domestic production is nearly three times higher, and the U.S. lacks the needed manufacturing infrastructure.
Q: How can I support businesses like Busy Baby?
A: Buy directly from their websites, share their stories on social media, and support crowdfunding campaigns.
