China-US Trade War: American businesses cope with impact

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While China and the US have agreed to re-start talks to resolve their trade war, businesses in both countries are already coping with the impact of current tariffs and planning for what appears to be an uncertain future. In the US, millions of jobs could be at stake. CGTN's Hendrik Sybrandy reports from the state of Colorado.

It's the busy time of year for Olde Glory Fireworks. The days leading up to July 4th, America's birthday.

AERON CALKINS OWNER, OLDE GLORY FIREWORKS "Sales are good. Everyone's anticipating a great 4th because it's been wet."

Meaning no restrictions on setting these things off. Virtually all of this Colorado company's merchandise is made in China and was ordered late last summer. Olde Glory has yet to be touched by China's trade war with the US but:

AERON CALKINS OWNER, OLDE GLORY FIREWORKS "We do anticipate and watch the news and get worried about what could happen in the next few months as we place our orders for the upcoming season."

At many firms though, like this farm equipment dealer, tariffs have already hit.

OWEN PALM CEO, 21ST CENTURY EQUIPMENT "It's really been our new sales that have been impacted."

Furniture made in China has become more expensive.

JAKE JABS CEO, AMERICAN FURNITURE WAREHOUSE "We're going to have to raise our prices."

Profits on items like headwear are starting to shrink.

KAY MARTIN CEO, BOCO GEAR "I'm going to pay, my employees are going to pay."

HENDRIK SYBRANDY DENVER "And possibly many more American workers. A study by the U.S. Brookings Institution of last year's retaliatory tariffs imposed by China found more than two million jobs could be at risk across 40 different industries like plastics, aircraft manufacturing and pharmaceuticals."

DOUG ALLEN DANIELS COLLEGE OF BUSINESS, UNIVERSITY OF DENVER "It provides a sense and an aura of uncertainty to two million employees, that's for sure."

The University of Denver's Doug Allen says other studies show an even greater employment impact. U.S. farm jobs, for example, have already been lost due to this issue. Allen adds many businesses are in a state of transition as they try to cushion themselves.

DOUG ALLEN DANIELS COLLEGE OF BUSINESS, UNIVERSITY OF DENVER "The disruption and the pain that is experienced by individual workers during that period of transition is going to be quite significant."

Some companies are rethinking plans to expand.

RHONDA SWENSON CEO, KRIMSON KLOVER "We need a new marketing manager. We've put that hire on hold."

Some companies are rethinking their supply chains and looking at moving production out of China, ideally to the U.S.

LOU LONGO PLANET MORAN GLOBAL SERVICES PARTNER "Some items you can move, candidly there are a number of items you can't move. It's not as simple as saying oh make it in America because candidly the production capacity for certain items just doesn't exist."

And of course, Chinese workers are at risk too.

DOUG ALLEN DANIELS COLLEGE OF BUSINESS, UNIVERSITY OF DENVER "A tariff battle is sort of a barbaric way of negotiating and you have collateral damage on both sides."

The person in charge of hiring at one tariff-affected company says these are uncertain times for her 50 workers.

CAROLYE ASFAHL ELOPE "It can be challenging, and it's scary for people."

The storm clouds of tariffs are that not far off at Olde Glory, which has 100 seasonal workers.

AERON CALKINS OWNER, OLDE GLORY FIREWORKS "And we think oh my gosh that would be horrendous to our business. We're anxious in finding out whether that's going to be a problem."

That anxiety is being felt by employer and employee alike. Hendrik Sybrandy, CGTN Denver.