Small business owner concerns grow as tariff war drags on: 'How long before we close our doors'

RALEIGH, N.C. (WTVD) -- A small business owner says he'll soon have to make a tough decision. His products come from China. He recently received a shipment from overseas and shelled out thousands of dollars in tariff costs.

Joshua Esnard says he placed a small order that was just enough to keep shelves stocked and meet his contractual obligations.

Esnard paid more money in tariffs than on the actual product.

"If I could get on the boat and throw myself my stuff in the water, I might," he said.

Esnard showed ABC11 the receipt from US Customs and Border Protection. He ordered about $3,000 worth of goods from China and then on top on this, paid $4,600 for the 152 percent tariffs that was imposed.

"At this moment, I'm working for free or at a loss," said Esnard. "I don't know how long we could sustain that before we close our doors."

It wasn't so long ago that he was paying far less.

"My normal rate is 7.5," said Esnard.

He owns Cut Buddy, which offers men's grooming tools and kits.

Esnard says he's going $3 into the red with each item he sells with the 152 percent tariff.

He appeared on ABC's Shark Tank in 2017 and now has contracts with major retailers such as Target, Amazon and CVS.

"I just flew in on a redeye with Walmart and they're trying to be lenient about talking about raising the prices on their side . . . which I don't want to do because we've been about accessibility of haircuts and affordable prices," he said.

Jeffrey Dorman is an NC State Economist.

The school hosted a national economic conference on Thursday. Experts from around the country were in Raleigh to discuss trade and the impact of tariffs.

Dorman says it's becoming increasingly harder for businesses to get their products on ships bound for the us and it could soon impact our country's supply chain.

"Right now, what I'm hearing is that the slowdown is just about to start the ports both on the West Coast and the East Coast are saying the ships are about to stop showing up."

Esnard says to make the current situation work, he's considering raising prices to compensate for the tariffs. He is also questioning to slim down his staff, and cut back on donations to charities and nonprofits.

"I started the company with nothing and grew it to where it's at. I know that we will be scrappy and make it through this. I am more stressed for my employees and for the consultants that we employ. That's the thing that keeps me up at night," said Esnard.

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