China Tariffs Put Me Out Of Business

From the Desk of Attorney Omar Zambrano: Helping 10,000 Families Become Debt-Free in 2025

📍 Proudly Serving Los Angeles, San Bernardino & Riverside Counties

The calls started early on April 2nd, the day a 125% tariff on all goods from China went into immediate effect. By noon, I had six voicemails from small business owners in Baldwin Park, Pomona, and El Monte. By nightfall, we’d booked fifteen emergency consultations — and the pattern was undeniable.

One after another, clients said the same thing: “I can’t survive this.”

This article is not about headlines. It’s not about politics. It’s about what I’ve witnessed firsthand over the last two weeks: 

Southern California small businesses collapsing under the weight of tariffs they cannot absorb.

The Warehouse Is Full — But It’s All Unsellable Now

Let’s start with Miguel and Lucia — owners of a household goods distribution business in South El Monte. For eight years, they’ve sold through Amazon and regional discount chains like Superior Grocers and Vallarta. They import silicone baking tools, baby bibs, lunch containers, and laundry organizers — mostly small-ticket essentials with high turnover.

As of April 13th, they had tens of thousands of units in their warehouse. But the math has changed overnight.

“We used to pay $2.50 landed cost per item from China,” Miguel told me. “With the new tariff, it’s now $5.63. We sell these at $6.99. There’s nothing left after fees, freight, storage, labor. Nothing.”

They can’t raise prices. Dollar-driven retailers are already dropping them. And Amazon’s algorithm favors cheaper products — often still shipping direct from Chinese sellers who avoid tariffs using loopholes like small parcel shipping.

They’ve canceled their summer container orders. And without that volume, their 3PL warehouse contract will double in cost. They are now weeks — not months — from shutting down.

From Santa Fe Springs to Ontario — Everyone Is Cutting Back

Miguel and Lucia aren’t alone.

I spoke to a toy wholesaler in Vernon who shelved three new product lines. A boutique tea importer in West Covina who stopped fulfillment entirely. A cosmetics brand in Baldwin Park that laid off three of its six employees.

Each one told me: “I wanted to move production out of China. But it’s not that simple.”

Let’s be very clear — U.S. manufacturing is not ready. Vietnam, India, and Mexico don’t have the infrastructure in place for every industry. Many factories in those countries are still owned by Chinese conglomerates, which means you’re not really sidestepping anything — just shifting the invoice header.

Even businesses that tried to nearshore months ago were hit again. One client who spent six months relocating sourcing to Vietnam was blindsided by the 46% tariff on Vietnamese goods that hit just days later.

“I moved to avoid the China tariff, and they hit Vietnam the same week,” he said. “Now I’m stuck.”

The Collapse of De Minimis — The Final Blow

Small U.S. sellers used to compete against overseas sellers by leveraging quality control, faster shipping, and customer service. But Chinese competitors on Amazon, Temu, and Shein have relied on a loophole: De Minimis.

Any package shipped directly to a U.S. consumer worth under $800? No tariffs. No inspections. No delays.

That’s how sub-$5 kitchen tools flooded your feed. That’s how fake designer phone cases, LED lights, and even supplements made their way into American homes — underpriced, under-regulated, and untaxed.

Well, on May 2nd, 2025, that loophole ends. And while it might seem like a win for fairness, it’s too late for those of us who’ve already been absorbing the blow.

A Toy Company in LA County Gets Hit Twice

Let me tell you about a real company in Santa Fe Springs. They’ve been manufacturing plastic toys under contract for U.S. retailers for over two decades — classic items like stackable rings, beach buckets, and bath boats. Most parts are molded in China, but assembly, testing, and packaging all happen in California.

They were already paying a 20% tariff on toy parts. On April 2nd, that became 125%. Overnight.

“That’s the difference between profit and bankruptcy,” the CEO told me.

They don’t have the capital to retool their entire operation. Their workers are trained in assembly, not molding. And they’ve already had to furlough half the team.

“We’re doing everything here — storage, packaging, labeling, payroll. But we’re being priced out of our own supply chain.”

Retailers Are Adding “Tariff Fees” — But It Won’t Be Enough

Several clients have shown me new invoices from large U.S. retailers. “Tariff Adjustment Fee – 5%” appears at the bottom of the line items, alongside “Fuel Surcharge” and “Freight Buffer.” These are desperate attempts to recoup cost without losing shelf space.

Furniture suppliers, kitchen brands, electronics wholesalers — they’re all doing it. But it’s not going to stop the bleeding.

Consumers are already pulling back. Inflation fatigue has set in. And no one wants to pay more for storage bins or wall shelves.

“We’re drowning in inventory that we can’t raise prices on,” a storage product supplier told me. “Our warehouse is full. Our staff is panicking. We’ve never been in this position.”

Amazon Sellers Are Getting Crushed

One client in Hacienda Heights sells silicone baby items on Amazon — spoons, bibs, sippy lids. Her best-seller used to retail at $9.99. Competing Chinese listings have since dropped to $5.50, with free shipping.

To stay competitive, she lowered her price to $7.99.

Now? That $7.99 item costs her $6.45 landed, after tariffs. After Amazon fees, she’s losing $1.88 per sale.

“I’m paying to go out of business,” she said. “And I can’t raise prices, because shoppers just go to Temu.”

She’s already started liquidating stock and letting go of her part-time help. “I have two kids and no backup plan,” she told me through tears.

This Is Los Angeles County’s Crisis — And It’s Not Just About Imports

This tariff disaster is hitting our clients, our neighbors, and our local businesses.

• City of Industry: Electronics refurbishes are seeing their margins disappear as parts pricing doubles.

  
  

• San Gabriel: Clothing labels are canceling summer lines due to rising fabric and button costs.

  
  

• Montebello: A client importing tea from Hangzhou saw her entire shipment stuck in customs with a $27,000 bill she can’t pay.

The ripple effect is everywhere. Warehouse jobs are being cut. 3PL contracts are being canceled. Small freight brokers in Ontario and Fontana are reporting a 30% drop in volume.

This isn’t about stock tickers or GDP. This is about ordinary people losing their livelihoods overnight.

What You Can Do Right Now — A Strategic Response

If you’re reading this and your business is at risk — it’s time to act. Here’s what I tell every client facing financial collapse due to tariffs:

1. Don’t Wait to Fall Behind If your product pricing is underwater, don’t keep pouring money into freight and ads. Let’s talk about whether it’s time to pivot, scale back, or file.

   
   

2. Protect Yourself From Lawsuits If vendors are demanding payments you can’t make, we can help you negotiate, settle, or file for legal protection.

   
   

3. Reassess Business Viability Is there a path to move production elsewhere? Are there assets worth shielding before the cash runs out? We’ll help you think through the hard questions.

   
   

4. Explore Bankruptcy to Reset Bankruptcy isn’t failure — it’s a tool. If your business is no longer viable under this tariff regime, we can help you wipe debts, restructure, and start again.

   
   

5. Plan for a Personal Shield If you’ve personally guaranteed leases, inventory, or credit lines, let’s review those immediately. Don’t let your personal finances fall with the business.

Legal Services We Offer to Protect You

I don’t offer theories. I offer solutions — backed by 25 years of experience serving LA County.

🛡️ Bankruptcy Protection (Chapter 7 & 13)

Wipe out credit card and business debt. Keep your home. Stop lawsuits. Start fresh.

🛡️ Business Shutdown Guidance

Close your business cleanly. Avoid personal liability. Walk away with dignity.

🛡️ Credit Card & Loan Settlement

We negotiate directly with lenders to reduce balances, stop interest, and avoid court.

🛡️ Wage Garnishment Defense

If a creditor is garnishing your paycheck, we file emergency motions to stop it.

🛡️ Repossession & Equipment Seizure Defense

We stop repossession of vehicles, forklifts, packaging equipment — anything essential.

🛡️ Foreclosure & Rent Eviction Defense

Behind on your mortgage or commercial lease? We help delay or halt proceedings while you reorganize.

📞 Free Legal Consultation

We’ll review your debts, assets, and business risks — and give you a legal game plan. No pressure. No fees upfront.

Closing Thoughts: Los Angeles Deserves Better — And We Will Rebuild

The tariff wave has slammed directly into the heart of LA County’s working economy — and many small business owners didn’t see it coming.

If you’re one of them, I want you to know: this doesn’t have to be the end.

Some will pivot. Some will downsize. Some will file, but many will survive because they got the right help at the right time.

Let’s talk.

📞 Call or Text Now: (626) 338-5505 

🌐 Visit: www.omarzambrano.com 

📱 WhatsApp: +1-626-550-7071 

📍 Office: 12738 Ramona Blvd, Baldwin Park, CA 91706

Helping 10,000 Families Become Debt-Free in 2025

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