The Unintended Casualties of the Tariff War

Small American Businesses Like Kalalou, Inc. Face a Tidal Wave of Tariffs — But There’s a Simple Fix

When politicians talk about tariffs, they often frame them as a tool to protect American manufacturing and bring jobs back home. But there’s a group of quiet, overlooked victims in this “Tariff War”—small to medium-sized American companies that can’t make their products in the U.S., but who employ millions of hardworking Americans nonetheless.

These are real companies, not faceless importers. They’re the small businesses that have built their brands by curating unique products from artisans and makers across the globe—products that simply do not have a U.S.-made equivalent. They employ American workers, pay steady salaries, offer health care, and contribute to their employees’ retirement through 401(k) plans. Yet, they now face devastating consequences from tariffs that were never aimed at them in the first place.

Take Kalalou, for example—a true “American Dream” story. Born in a Mississippi garage 40 years ago, Kalalou has grown into a beloved home décor brand, supplying over 10,000 retail stores nationwide. Today they employ 100 hard working Mississippians. And that garage enterprise now operates out of a 150,000 square foot distribution center. Doug and Susan Williams have spent decades forging relationships with small villages and towns in seven countries, sourcing unique, handcrafted items that make up their 1,500-product wholesale catalog.

But none of these products can be made in the U.S.

In 2024, Kalalou paid substantial tariffs to keep its business afloat. In 2025, that burden has doubled. If the trend continues, Kalalou will be forced to pay up to $1 million in tariffs by year’s end—a crushing blow to a company of its size. These aren’t empty numbers. They represent jobs, salaries, health care coverage, and the well-being of 100 Mississippi families.

But Kalalou’s owner, Susan Williams, is not one to sit back and wait for Washington to notice. She’s proposing a solution that turns this problem into a win-win for everyone.

It is called The Employee Profit Share Tax Credit.

The Employee Profit Share Tax Credit — A Simple, Powerful Solution

Here’s how it works:

- Companies like Kalalou that import goods and share 10% of their net profits with their employees would qualify.

- In return, they would receive 90% of their tariff payments back from the government.

- The government keeps the remaining 10%, ensuring tariffs stay in place as a negotiation tool.

- It’s a solution that benefits everyone:

- Trump (or any president) wins because tariffs remain in place as a powerful geopolitical tool.

- Employees win by receiving a substantial profit-sharing check at the end of the year.

- The American economy wins because employees will take that extra income and spend it, fueling local economies and small businesses across the country.

This isn’t a bailout. It’s a blueprint for runaway economic growth—one that rewards companies for sharing their success with their American workforce. And this cost the government $0. But most importantly, it’s a lifeline for businesses like Kalalou. It’s a way to save the “unintended casualties” of the tariff war—the small businesses who’ve done everything right, yet now stand to lose it all. If Washington is serious about protecting American jobs, it’s time to take a closer look at who’s actually carrying the weight of these tariffs—and offer them a path to not only survive but thrive.