president Trump this week indicated he may soften his stance on tariffs against China which sit at 145% on all goods but Chinese officials today hit back claiming no negotiations about trade or the economy have taken place with the White House meanwhile companies large and small say they're bracing for lower profits as shoppers rethink their spending and try to make sense of the on-again off-again policy that makes it especially difficult for owners to plan for the future even as some here in New Jersey try to get ahead of the tariffs and bulk up their inventory senior correspondent Brenda Flanigan reports all of these items that you're seeing stacked here all of these were going to be subject to tariffs at a fairly high rate dean Smith walked us through shelves stocked with imported toys extra inventory he rushed to buy ahead of Donald Trump's tariff deadlines just to keep his Princeton store jazams supplied with affordable merchandise see these electronic toys from Belgium it's a Belgian company but it's all made in China and Chinese-made toys face 145% tariffs these slid in just under the wire but Smith had to wrangle with customs that was an $1,100 order and I was charged $1,400 in tariffs for it and then I had to argue and argue with 77% of toys sold in the US made in China smith and partner Joanne Fua didn't wait for the White House to launch its trade war on Liberation Day they spent $400,000 drained savings accounts and tapped credit lines to prepare for the worst it's going to be a big price increase if the 145% doesn't get you know some kind of carve out for small businesses or something trade negotiations with China remain unsettled even after the CEOs of Target Walmart and Home Depot warned the president that disrupting supply chains would create product shortages just yesterday we heard from two more manufacturers that they've suspended all shipments to the United States for the remainder of the year three manufacturers on these shelves have already stopped shipping and Smith says savvy parents are already shopping and buying birthday and holiday gifts for their kids to avoid the disappointment of empty shelves later on this year it's one reason Lamar Batty bought poinsetta Legos now I came in yesterday in Sydney i come back tomorrow from my downtown so that's why I had grabbed it make sure you can get it while it's still here yes that's exactly what I'm going to do construction and trade shops that work on custom projects like sand camp in Jersey City are scrambling for raw materials with specialty woods imported from Spain Italy and Canada and hinges from Austria that's why you see people like me and businesses like mine buying materials really quickly trying to catch that wave right before the the tariffs hit sandamp caters to upscale clients and it's got two projects in the works but one just got put on hold and prices are rising at lumber yards and I can't eat all that especially if it comes from China what 140% it's just incredibly inflationary whatever the tariff is that's going to be the additional price i think for small businesses they always take it in the neck there's there you know we're the first ones to fall kelly Conklin with New Jerseys Main Street Alliance points to market volatility and widespread forecasts of a sharp economic downturn new Jersey recently reported that before retaliatory tariffs even hit first quarter layoff announcements here had doubled from last year we're feeling that already because this self-inflicted wound which is the tariffs has already started the process it's likely in my estimation and experience to deepen it and lengthen it and the real question is you know how deep and how long most small businesses operate on slim profit margins jazams will try to hold the line on prices and avoid staff cutbacks how long will its stockpile last f Rouia joked "Even a magic eightball can't predict what's coming how bad could this get if it doesn't change I think it could be catastrophic for Main Street i think we're going to see closures i think we're going to see companies that can't survive this for sure."

The president's predicted negotiations with China will lead to lower tariffs jazam's well anchored they've been in business here 30 years but they're holding their breath in Princeton i'm Brenda Flanigan NJ Spotlight News