WASHINGTON (DC News Now) -- Global trade is intensifying as the world's two largest economies are amping up their retaliatory tariffs. China is now slapping a 125% tax on all American imports, making U.S. products like pharmaceuticals, planes, and soybeans potentially too expensive to sell to Chi na. Chinese leaders say this was in response to President Trump's 145% tariff on all imports from China. This will likely jack up prices for electronics, clothing, and toys. Those tariffs are having an impact on both D.C. area business owners and shoppers. "We just can't plan accurately for what's going to happen," said Eva St. Clair, co-founder of Princess Awesome, a D.C.-based shop that sells fun dresses to both adults and children. DC set to celebrate 20th anniversary of Emancipation Day holiday with parade, festival St. Clair told DC News Now in an interview that she is worried about how the company's two owners and one other employee will be able to pay themselves due to rising costs. "We don't know which factories we can work with and which ones we should probably try to make a new relationship with," she said. Despite the increased costs, particularly on dresses made in China, Princess Awesome is not raising prices for customers; rather, it is asking for tips after sales if a customer can give. "With the uncertainty in the economy, we know people are cutting back to begin with," St. Clair said. Meanwhile, in Manassas, Va., Sarah Pitkin says the four hardware stores she owns are starting to see some prices go up. "If something that costs $1 last week now costs $2, the prices [are] going to have to go up in the store just because there's not a lot of margin in hardware," Pitkin said. While she said shoppers may not see a huge difference in prices yet, some items are about to undergo greater price hikes. That includes some barbecue grills, some of which she said manufacturers told her will cost $200 more. The uncertainty is also a challenge for Pitkin. "[The challenge is] knowing whether or not the specialty items, the larger items that we bring in, if we should be buying them now or waiting to see if this is just a lot of increase that's going to go away," she said. Both Pitkin and St. Clair said they believe small businesses are taking the brunt of the trade war. ...read more read less