The come and go of tariffs—those that are threatened and others already in place as of this week—have area business owners uncertain about potential impacts at the local level.
As of March 12, the Trump Administration has implemented a 25% tariff on all goods from Canada and Mexico (with a reprieve for goods covered by the USMCA Trade Act). After implementing a 10% tax on all imports from China, President Donald Trump added an additional 10% tariff, which went into effect March 4.
Other tariffs, set to go into effect March 12, include a 25% tariff on aluminum and steel.
“As a small business owner, I see firsthand how these costs ripple through every aspect of our operations from sourcing to pricing and ultimately to the customers who rely on us,” said Phuni Meston, owner of Karma Fine Crafts in Belmont Center, which imports handmade home décor, jewelry, clothing and art from around the world.
Next month, additional tariffs are proposed on agricultural products and all foreign cars.
“Right now I’m actively seeking ways to keep our prices fair without compromising the integrity, quality, and mission of what we bring to our loyal local community,” said Meston.
According to the U.S. Bureau of Industry and Security, a partial list of items imported from Canada includes wood, charcoal, aluminum, iron and steel appliances, cereal, flour, starch and milk products, rubber, alcoholic beverages, carpets and other textiles and certain fabrics including cotton.
Graphic Developments, which prints The Voice, announced an 8% surcharge due to tariffs on newsprint and aluminum printing plates. According to the company, these two items account for roughly ⅓ of the total printing costs.
The surcharge will go into effect in April.
Mexico provides produce, fertilizers, dairy products, eggs and honey, meat and seafood, beer and liquor, coffee, tea and spices, paper products and raw sugar. China is a source of food, soaps, cereals, cocoa, dairy products, garlic, and seafood.
The local impact
While the fights are being waged at the federal level, impacts will be felt locally, especially by small businesses that may lack the flexibility to change providers, absorb costs or negotiate prices like a large corporation might.
With tariffs on Canadian steel and aluminum in effect, Nathan White, general manager of Cityside Subaru, said customers are asking about the impacts. He is concerned rising prices will deter customers from making major purchases like a new vehicle.
Subaru’s U.S. manufacturing plant is in Indiana, but parts come from Canada and Mexico, so tariffs will impact supply chains, making vehicle repairs more expensive and potentially leading people to delay making costly repairs.
“Certainly our hope is that this is a short-term thing and cooler heads prevail or something is worked out,” he said.
Fotis Construction & Remodeling, located on Pleasant Street, employs 12 people and provides residential and commercial construction services throughout the region. Owner Tom Fotis said tariffs are only the most recent hit to his business, which has been impacted by a pandemic-era economic downturn and insurance hikes of 30 to 40% over the past two years.
The company specializes in plumbing and HVAC (heating, ventilation, and air conditioning) services, and Fotis said prices are already expected to rise due to new state-mandated refrigerant regulations. Tariffs will push HVAC prices even higher.
“We’re getting notices and emails from our suppliers that HVAC prices are going to take an initial 15% jump and maybe more soon,” he said.
Tariffs on Canadian lumber will cause construction prices to rise, which is why Fotis said his company is preparing customers for higher prices while trying to offer them multiple material options to manage costs.
“When we present prices, we try to give people multiple options,” he said. “If you’re doing a deck, and there are different options like composites or lumber, those prices are very different from each other. We try to explain to people you have a good, bette,r and best type of option and we explain the differences and let the customer make that decision.”