From Yahoo Finance: 2025-06-11 22:26:00

Toy robots teaching kids to code, American-made sneakers, and mold-resistant kitchen gadgets are stuck in production due to Trump’s trade policies. Companies like Dorai Home are struggling to innovate as tariffs on Chinese goods disrupt supply chains and increase costs, forcing layoffs and delays in product launches.

Dorai Home, known for eco-friendly home goods, had to postpone new merchandise due to tariff uncertainty. As Trump fluctuated import tax rates, the company faced financial strain, pausing shipments from China. Entrepreneurs are wary of ongoing tariff threats, which hinder innovation and economic growth.

Small companies like Schylling Inc. are feeling the impact of tariffs, with some employees laid off to cut expenses. Larger corporations, like Google parent Alphabet, continue to invest in innovation despite trade frictions. American manufacturers, like Made Plus, are exploring alternatives to Chinese suppliers to navigate the unstable trade environment.

Experts warn that tariffs could permanently damage U.S. markets and business strategies. With executive focus shifting to compliance over innovation, companies struggle to stay competitive. As businesses grapple with tariff-related tasks, product development suffers, hindering the next wave of innovative products.

Learning Resources and hand2Mind, toy companies owned by the same family, are locked in a legal battle with the Trump administration over tariffs. A federal judge ruled in favor of the companies, but the administration has appealed. Entrepreneurs like Rick Woldenberg are fighting for certainty in trade policy to protect American innovation and business growth.

Read more: Innovation takes a backseat at small companies as tariffs become a full-time preoccupation