YouTube megastar and entrepreneur MrBeast, real name Jimmy Donaldson, has publicly criticized President Trump’s new tariffs, calling them “pretty brutal” and warning they could be a “nail in the coffin” for small businesses.
As the founder of the chocolate brand Feastables, Donaldson is now considering moving production overseas. Tariffs on imported ingredients like cocoa have made U.S. manufacturing significantly more expensive.
How tariffs affect creators and their businesses
Feastables generated $215 million in 2024, accounting for half of Beast Industries’ revenue. Despite this success, Donaldson is weighing the cost of staying domestic against shifting operations abroad. He emphasized that while his company can adapt, smaller businesses might not survive these sudden cost increases.
This situation is a critical issue where the policy changes disrupt the supply chains, so creators with physical products face tough decisions. Rising costs can erode profit margins, making it harder to maintain ethical standards or keep prices competitive.
Before pausing many of the imposed tariffs, Trump’s “Liberation Day” tariffs introduced a 21% levy on cocoa imports from countries like Côte d’Ivoire. Moreover, the impact isn’t limited to chocolate. Toy companies, for example, are warning that prices could double by Christmas due to similar tariffs.
Overall impact of the tariffs
Trump’s tariffs before the 90-day pause initially hit imports like cocoa and aluminum with rates over 20 percent. For creators and small businesses, that means tighter margins, pricier materials and fewer options. Some companies may move production overseas to stay profitable, which could hurt U.S. jobs in the long run, especially if China considers its own countermeasures.