With China and the United States embroiled in an all-out trade war, Illinois companies are scrambling to find new overseas suppliers, even as they prepare to pass on the higher costs to their customers.
Everything from the mundane to the practical to the exotic — washing machine parts, dining room sets, horsehair waste — is on the growing list of products that, as of Friday, are scheduled to carry a 25 percent tariff to import from China.
While Chicago-area companies are looking to source more goods from Vietnam and other countries to avoid the fee, they warn that higher price tags — and, perhaps, a sales slowdown — may be inevitable.
Walter E. Smithe, president of the eponymous Itasca-based furniture company started by his grandfather in 1945, said the 25 percent tariffs raise its costs on leather upholstery, bedroom sets and dining room sets, among other furniture.