A sourdough baker turned entrepreneur in North Carolina has delayed his new product as he contemplates the prospect that higher costs will doom his company.
Erik Fabian figured his new product would have landed in American kitchens by now. The DoughBed, a suitably warm resting place for flour and yeast on its way to becoming a loaf of sourdough bread, would ideally have been generating positive reviews and cash to finance his business.
Instead, Mr. Fabian, 49, is waiting for a container ship bearing the first DoughBeds from his factory in China to dock at the Port of Houston, about three months later than expected. He is scrambling to secure credit in the face of a cash crunch. Rather than plotting growth strategies for his start-up, Sourhouse, he is consumed with survival.
The reason for his distress is the global trade war championed by President Trump. Months of extraordinary volatility — with tariffs announced, then delayed, then changed — have left Mr. Fabian confused about the basic economics of his business. Like millions of small-business owners dependent on imports, he has grown accustomed to a menu with no palatable options: Pay an expensive tax now, or wait and hope for better while accepting delays.
Mr. Fabian had planned to ship his new product from China in early April. At the time, tariffs on Chinese imports reached 145 percent. So he waited until late May, when the tariffs had been reduced to 30 percent.
His decision pushed the arrival of the DoughBeds from spring — an excellent time to launch a new kitchen product — into summer, a miserable season to introduce a gadget tied to turning on the oven. He has postponed a marketing push until fall.
