Chinese tariffs hit Houston businesses; "We're probably going to go down 25% in profit"

HOUSTON - Several Houston businesses say they're already feeling the impact following the announcement of heightened Chinese tariffs placed by President Donald Trump. 

Chinese tariffs increase to 145%

The tariffs President Trump imposed on goods imported from China have reportedly grown to 145%, according to the Associated Press. It's an issue FOX 26 is tracking live. 

In a Truth Social post, the president announced a 90-day pause on new tariffs, except for China.

"At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other countries, is no longer sustainable or acceptable," he wrote.

Local perspective:

Houston toy industry impacted

Misfit Toys in Northwest Houston is one of the largest toy stores in the area, boasting a collection of vintage, box-new and hard-to-find items. 

"I keep the store stocked with no less than 2,000 transformers at all times," said the owner, Blackbird. 

Blackbird says 99% of new inventory that comes into the store is imported from China. 

"We're all very, very worried we're going to have to rely on my community," he said. 

He's expanding the store with a new grand opening on May 31 and says he placed a $10,000 order to do so, but recently had to pull the plug on it. 

"Every order that we've made, it's gone. Poof, it's gone. We've already canceled them, or they've notified us that, these items you pre-ordered will be twice as much," he said. 

For Blackbird, he plans on depending on the community to keep his inventory stocked.

"We're going to have to get real creative and find a lot more used toys," he said. "If you have old toys, call us, we'll buy them. We'll come drive out to your house and pick 'em up."

Local boutiques feel the impact 

Further south in the River Oaks area, Monkee's of Houston clothing boutique is in a similar boat. 

"Most of our vendors are upping their wholesale prices, so I have to up my prices for MSRP," said Lisa West, the store owner. 

West says she imports inventory from all over the world, but for the brands that are facing tariffs, she's already seeing some price changes. 

"It's not a huge price difference. It is $5-$10 wholesale and MSRP has only gone up about $5 in certain brands," she said. 

Like Blackbird, she plans on eating some costs to save the customer. 

"Some vendors I'm very passionate about and the customer really likes them, so I will be able to take a hit on a few things where I won't charge the tariff influx on wholesale. I'll just keep it as is," she said. 

Blackbird estimates Misfit Toys will lose around 25% of their profit during this time. West says the impact to her store is part of an unsettling unknown. Monkee's will offer 20% off dresses starting April 11. 

"I think that would hurt a small business, it's not going to help us," said West.