Cara Dyer

This is Planet Money from NPR.

This is Planet Money from NPR.

jobs. Right. There's a whole chain of people for that one product that will be affected if I don't bring that product in.

jobs. Right. There's a whole chain of people for that one product that will be affected if I don't bring that product in.

Well, I have mixed emotions, honestly. She's not quite celebrating. I do feel a little bit like a weight has been lifted. Just a little bit. But I'm also feeling super cautious.

Well, I have mixed emotions, honestly. She's not quite celebrating. I do feel a little bit like a weight has been lifted. Just a little bit. But I'm also feeling super cautious.

No, no, I don't. It's scary. It's super scary. I feel like something could go wrong at any second.

No, no, I don't. It's scary. It's super scary. I feel like something could go wrong at any second.

Like, this has literally already happened to me. And so, like, it is very risky. It's very uncertain. And it's not going to feel okay until there is a real solid trade agreement in place.

Like, this has literally already happened to me. And so, like, it is very risky. It's very uncertain. And it's not going to feel okay until there is a real solid trade agreement in place.

Just extra, like out of pocket.

Just extra, like out of pocket.

We are a small business. A $100,000 order is... Not that much, actually.

We are a small business. A $100,000 order is... Not that much, actually.

If shipping is crazy because of the supply chain disruption, that could be a surprise cost that comes up

If shipping is crazy because of the supply chain disruption, that could be a surprise cost that comes up

What I'm going to propose to our factory is that we share the tariff. the expense of the tariff. And I think that they can come down a little bit on their price so that we can do that. And then also both share the risk of the tariff reemerging. So if it ends up that we have to pay a tariff of 50% or 80%, that they agree to pay half of that and I will agree to pay half.

What I'm going to propose to our factory is that we share the tariff. the expense of the tariff. And I think that they can come down a little bit on their price so that we can do that. And then also both share the risk of the tariff reemerging. So if it ends up that we have to pay a tariff of 50% or 80%, that they agree to pay half of that and I will agree to pay half.

And you think they will do that? Yeah. I don't know. I'm going to propose it to them. I think it's at least worth asking. And I don't think that they have a lot of room. But my other choice is to go out of business or sell all the inventory that I have and then go out of business.

And you think they will do that? Yeah. I don't know. I'm going to propose it to them. I think it's at least worth asking. And I don't think that they have a lot of room. But my other choice is to go out of business or sell all the inventory that I have and then go out of business.

We could work with our factory to make a little planet money something. But they don't just make like one one off products. Well, it's a sample. Oh, we could get a Planet Money doll sample. You obviously pay them. Yeah, no, we would pay them. Maybe you could make a plush planet. Maybe like a squirrel. Okay. Or it could be an astronaut.

We could work with our factory to make a little planet money something. But they don't just make like one one off products. Well, it's a sample. Oh, we could get a Planet Money doll sample. You obviously pay them. Yeah, no, we would pay them. Maybe you could make a plush planet. Maybe like a squirrel. Okay. Or it could be an astronaut.

Yeah, I started my career designing missile guidance systems and... Missile guidance systems? Missile guidance systems, yes, yes.

Yeah, I started my career designing missile guidance systems and... Missile guidance systems? Missile guidance systems, yes, yes.

Yeah, yeah, it actually is the exact opposite of missiles.

Yeah, yeah, it actually is the exact opposite of missiles.

And then, you know, it's like this little flap that you open.

And then, you know, it's like this little flap that you open.

All of these pieces. It's like sturdy foam puzzle pieces. That kids can build into the fairy tale world that is depicted in the story. They build the Three Little Bears house, and it's got three bowls of porridge and three chairs and three little beds. It's like a gingerbread house kind of vibe. Yes, yes. And this is like our patented technology. So...

All of these pieces. It's like sturdy foam puzzle pieces. That kids can build into the fairy tale world that is depicted in the story. They build the Three Little Bears house, and it's got three bowls of porridge and three chairs and three little beds. It's like a gingerbread house kind of vibe. Yes, yes. And this is like our patented technology. So...

Like for the Three Little Pigs, the straw house blows down easily. Like it's not very stable and you can knock it over. And the stick house is sort of the same way, but the brick house, we've designed it so that like it really stands firm.

Like for the Three Little Pigs, the straw house blows down easily. Like it's not very stable and you can knock it over. And the stick house is sort of the same way, but the brick house, we've designed it so that like it really stands firm.

Because, you know, you have to pay the tariff as a lump sum when the product arrives.

Because, you know, you have to pay the tariff as a lump sum when the product arrives.

Like months longer. And then on April 2nd? The tariffs were announced and, you know, quickly escalated to 145%. And... At that point, it was out of our control.

Like months longer. And then on April 2nd? The tariffs were announced and, you know, quickly escalated to 145%. And... At that point, it was out of our control.

Yes.

Yes.

I know. I've been thinking about that $45,000 an awful lot.

I know. I've been thinking about that $45,000 an awful lot.

Yeah, it was on one of their web pages that says it was like an on-the-water exemption. Oh, on-the-water exemption.

Yeah, it was on one of their web pages that says it was like an on-the-water exemption. Oh, on-the-water exemption.

So that's yeah, it's super unclear. Oh, you don't know. Yeah, I don't know. Yeah. And even our customs shipping coordinator didn't know.

So that's yeah, it's super unclear. Oh, you don't know. Yeah, I don't know. Yeah. And even our customs shipping coordinator didn't know.

Oh. Oh, man. That is so frustrating because... At that point, we had no control over our shipment. Like, it had already, like, the wheels were in motion.

Oh. Oh, man. That is so frustrating because... At that point, we had no control over our shipment. Like, it had already, like, the wheels were in motion.

The shipping boxes are going to be more expensive and the labels and everything. So... There's so much more that that's adding to the cost too that I don't know what we're going to do. You seem really sad. Yeah, it is sad. It is sad. I don't want to lose my business, you know?

The shipping boxes are going to be more expensive and the labels and everything. So... There's so much more that that's adding to the cost too that I don't know what we're going to do. You seem really sad. Yeah, it is sad. It is sad. I don't want to lose my business, you know?

Uh, no. No, we couldn't. So, I mean, I've looked into it every year. That would be amazing. Dream. Dream scenario. It would be totally a dream scenario.

Uh, no. No, we couldn't. So, I mean, I've looked into it every year. That would be amazing. Dream. Dream scenario. It would be totally a dream scenario.

Our products are made from the same materials that yoga mats are made from, which is EVA foam. And China is really the only place where they make it.

Our products are made from the same materials that yoga mats are made from, which is EVA foam. And China is really the only place where they make it.

So I couldn't buy foam from them even if I wanted to. She's tried. So we would have to import all the materials.

So I couldn't buy foam from them even if I wanted to. She's tried. So we would have to import all the materials.

And the foam is kind of like what sets Kara's toys apart. Using this foam is one of our competitive advantages. We have these pieces that interlock, and you can pull them apart without any tools or screws or glue. So I even hesitate to think about changing our material. And if I was going to change to another material, I still think we would have... A similar problem.

And the foam is kind of like what sets Kara's toys apart. Using this foam is one of our competitive advantages. We have these pieces that interlock, and you can pull them apart without any tools or screws or glue. So I even hesitate to think about changing our material. And if I was going to change to another material, I still think we would have... A similar problem.

Like we would, if we were to change to cardboard, well, we would probably have to source the cardboard from China. China is the biggest producer of cardboard. Or if we were to change to bamboo, same thing.

Like we would, if we were to change to cardboard, well, we would probably have to source the cardboard from China. China is the biggest producer of cardboard. Or if we were to change to bamboo, same thing.

side of things. When we import a toy, say we spend, for example, $4 to have that manufactured in a factory in China. Well, then once it gets back over here to the United States, for that $4, I also spend another $15 to $30 getting the product into the hands of our customers.

side of things. When we import a toy, say we spend, for example, $4 to have that manufactured in a factory in China. Well, then once it gets back over here to the United States, for that $4, I also spend another $15 to $30 getting the product into the hands of our customers.

Because when you ask a factory in China to make you something... That would have been our design that we sent over there and we worked carefully with them. And I would have already probably worked with artists and designers and possibly some other engineers and packaging designers here in the U.S. And we would have coordinated quite a lot with the factory in China.

Because when you ask a factory in China to make you something... That would have been our design that we sent over there and we worked carefully with them. And I would have already probably worked with artists and designers and possibly some other engineers and packaging designers here in the U.S. And we would have coordinated quite a lot with the factory in China.

And that's just to get the product made.

And that's just to get the product made.

This is Planet Money from NPR.

jobs. Right. There's a whole chain of people for that one product that will be affected if I don't bring that product in.

Well, I have mixed emotions, honestly. She's not quite celebrating. I do feel a little bit like a weight has been lifted. Just a little bit. But I'm also feeling super cautious.

No, no, I don't. It's scary. It's super scary. I feel like something could go wrong at any second.

Like, this has literally already happened to me. And so, like, it is very risky. It's very uncertain. And it's not going to feel okay until there is a real solid trade agreement in place.

Just extra, like out of pocket.

We are a small business. A $100,000 order is... Not that much, actually.

If shipping is crazy because of the supply chain disruption, that could be a surprise cost that comes up

What I'm going to propose to our factory is that we share the tariff. the expense of the tariff. And I think that they can come down a little bit on their price so that we can do that. And then also both share the risk of the tariff reemerging. So if it ends up that we have to pay a tariff of 50% or 80%, that they agree to pay half of that and I will agree to pay half.

And you think they will do that? Yeah. I don't know. I'm going to propose it to them. I think it's at least worth asking. And I don't think that they have a lot of room. But my other choice is to go out of business or sell all the inventory that I have and then go out of business.

We could work with our factory to make a little planet money something. But they don't just make like one one off products. Well, it's a sample. Oh, we could get a Planet Money doll sample. You obviously pay them. Yeah, no, we would pay them. Maybe you could make a plush planet. Maybe like a squirrel. Okay. Or it could be an astronaut.

Yeah, I started my career designing missile guidance systems and... Missile guidance systems? Missile guidance systems, yes, yes.

Yeah, yeah, it actually is the exact opposite of missiles.

And then, you know, it's like this little flap that you open.

All of these pieces. It's like sturdy foam puzzle pieces. That kids can build into the fairy tale world that is depicted in the story. They build the Three Little Bears house, and it's got three bowls of porridge and three chairs and three little beds. It's like a gingerbread house kind of vibe. Yes, yes. And this is like our patented technology. So...

Like for the Three Little Pigs, the straw house blows down easily. Like it's not very stable and you can knock it over. And the stick house is sort of the same way, but the brick house, we've designed it so that like it really stands firm.

Because, you know, you have to pay the tariff as a lump sum when the product arrives.

Like months longer. And then on April 2nd? The tariffs were announced and, you know, quickly escalated to 145%. And... At that point, it was out of our control.

Yes.

I know. I've been thinking about that $45,000 an awful lot.

Yeah, it was on one of their web pages that says it was like an on-the-water exemption. Oh, on-the-water exemption.

So that's yeah, it's super unclear. Oh, you don't know. Yeah, I don't know. Yeah. And even our customs shipping coordinator didn't know.

Oh. Oh, man. That is so frustrating because... At that point, we had no control over our shipment. Like, it had already, like, the wheels were in motion.

The shipping boxes are going to be more expensive and the labels and everything. So... There's so much more that that's adding to the cost too that I don't know what we're going to do. You seem really sad. Yeah, it is sad. It is sad. I don't want to lose my business, you know?

Uh, no. No, we couldn't. So, I mean, I've looked into it every year. That would be amazing. Dream. Dream scenario. It would be totally a dream scenario.

Our products are made from the same materials that yoga mats are made from, which is EVA foam. And China is really the only place where they make it.

So I couldn't buy foam from them even if I wanted to. She's tried. So we would have to import all the materials.

And the foam is kind of like what sets Kara's toys apart. Using this foam is one of our competitive advantages. We have these pieces that interlock, and you can pull them apart without any tools or screws or glue. So I even hesitate to think about changing our material. And if I was going to change to another material, I still think we would have... A similar problem.

Like we would, if we were to change to cardboard, well, we would probably have to source the cardboard from China. China is the biggest producer of cardboard. Or if we were to change to bamboo, same thing.

side of things. When we import a toy, say we spend, for example, $4 to have that manufactured in a factory in China. Well, then once it gets back over here to the United States, for that $4, I also spend another $15 to $30 getting the product into the hands of our customers.

Because when you ask a factory in China to make you something... That would have been our design that we sent over there and we worked carefully with them. And I would have already probably worked with artists and designers and possibly some other engineers and packaging designers here in the U.S. And we would have coordinated quite a lot with the factory in China.

And that's just to get the product made.