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Product cover image for Busy Baby and the Tariff Trap: A Small Business at a Crossroads

Busy Baby and the Tariff Trap: A Small Business at a Crossroads

Neha Mittal

Product #:W44686
Supplier:Ivey/Temple
Discipline:Entrepreneurship, International Business
Setting:United States, 2025
Details:Case (PDF) • 8 pages • 2025-05-20

Subjects:

Business managementEntrepreneurshipInternational business

Industries:

Goods, trade, and consumer services

Geography:

United StatesNorth America
Your Price:$10.54

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In April 2025, Beth Benike, a US Army veteran and founder of Busy Baby LLC, was riding a wave of success. Her baby products company had crossed US$15 million in sales and earned shelf space in Walmart Inc. and Target Corporation stores, and she had just been named Minnesota Small Businessperson of the Year. But a sudden 145 per cent tariff on Chinese imports imposed by the Trump administration upended everything. With critical inventory stranded overseas and no feasible option for domestic manufacturing, Benike found herself in a financial and operational crisis. She now faced a pivotal decision. Should she pursue new international markets, attempt reshoring, raise funds through crowdfunding, or risk the collapse of her business and personal finances?

Learning Objectives

This case is well-suited for undergraduate, graduate, and executive education courses, especially those addressing business uncertainty and the challenges small businesses face amid shifting international policies and regulations. It can enrich discussions in courses on strategy, international trade and logistics, supply chain management, entrepreneurship, innovation management, and operations. Instructors can use this case to explore the effects of trade tariffs while also highlighting how uncertainty and government interventions (such as tariffs, bans on importing key raw materials, currency fluctuation, limiting quantity that can be imported or exported) can significantly impact small businesses. In studying and discussing the case, students will do the following:
  • Evaluate how sudden changes in international trade policies can disrupt business models and force entrepreneurs to reassess strategic priorities, market focus, and long-term growth plans, including considering international expansion as a viable path forward.
  • Understand the operational and financial trade-offs in choosing overseas vs. domestic manufacturing, particularly for small firms with limited capital.
  • Understand the role of resilience in entrepreneurial decision-making.
  • Evaluate how government trade policies can sometimes create unequal burdens for small and large businesses.
  • Examine how entrepreneurs could navigate unexpected external shocks and generate creative alternatives to influence trade and regulatory policy.
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Case Study: Busy Baby and the Tariff Trap: A Small Business at a Crossroads (English version) | Ivey Publishing