Veteran’s Watch-Cleaning Startup Struggles as Tariff Hike Threatens Hard-Earned Success

Veteran’s Watch-Cleaning Startup Struggles as Tariff Hike Threatens Hard-Earned Success
Veteran’s Watch-Cleaning Startup Struggles as Tariff Hike Threatens Hard-Earned Success

Anthony Mendoza, a 41-year-old veteran Army major and father of two from Phoenix, found unexpected success with an invention aimed at antique watch enthusiasts. His product, called Chrono Clean, gently rinses timepiece components and quickly gained traction in niche online communities.

By winter, he had sold out his first 500 units, signaling a promising start to a new entrepreneurial chapter following his military service and a difficult divorce. Mendoza had high hopes for scaling the business and fulfilling his version of the American dream.

Although Mendoza initially aimed to produce Chrono Clean in the United States, he found domestic manufacturing costs prohibitively high, nearly double the price of what he could manage through Chinese production.

With U.S. quotes topping $300 per unit versus $150 abroad, he turned to Chinese factories to remain competitive. Thanks to a boost from a popular YouTube channel and strong online buzz, Mendoza made approximately $60,000 in profit from his first batch, reinforcing his faith in the venture’s potential.

Tariff Surge Threatens Mendoza’s Business as Costs Soar and Profits Rapidly Decline

In early 2025, Mendoza placed an order for another 500 units, anticipating continued momentum. But by April 10, President Donald Trump had raised tariffs on Chinese imports to a staggering 145%. The sudden escalation caught Mendoza off guard, threatening his ability to import and sell his next shipment. With his second batch ready to ship, he feared the worst. The tariff spike rendered his entire business model unsustainable and left him facing the possibility of abandoning Chrono Clean altogether.

Veteran’s Watch-Cleaning Startup Struggles as Tariff Hike Threatens Hard-Earned Success
Veteran’s Watch-Cleaning Startup Struggles as Tariff Hike Threatens Hard-Earned Success

After a tense month, trade negotiations in Geneva led to a reduction of tariffs back down to 30% on May 12, offering temporary relief. Mendoza wasted no time and instructed his Chinese manufacturer to ship the units. However, even with the lowered rate, his shipping costs more than doubled—from $1,100 to $2,650. The increase slashed his profit margins and left him financially stretched, balancing the demands of his business and the cost of raising two daughters as a single parent.

Tariff Uncertainty Forces Mendoza to Reroute Shipments and Reevaluate Business Survival Strategy

The constantly shifting tariff policies have left Mendoza scrambling for solutions. To protect his business from future price hikes, he began rerouting some shipments directly to the United Kingdom to bypass U.S. import duties. However, this alternative comes at a steep cost and significantly reduces his profit margins.

Mendoza remains anxious, knowing that if tariffs climb back to 145%, importing his next batch could become financially unfeasible. With a five-month production lead time, he depends on stability, but the ongoing political uncertainty keeps him in a state of constant worry.

Mendoza expressed deep frustration with the Trump administration’s trade policies, which he sees as favoring big corporations while disregarding the realities faced by small entrepreneurs. He argued that policies aiming to force domestic manufacturing overlook the economic challenges small businesses face.

Despite his military service, personal resilience, and inventiveness, Mendoza feels sidelined. “It’s not the American dream,” he said, lamenting how a government decision could unravel everything he’s worked to build.