Chaos and uncertainty: America’s small businesses reel from Trump’s tariffs – National
ALEXANDRIA, Va. – U.S. retailers are feeling the blunt impacts of President Donald Trump’s tariffs on imports.
Virginia toy store owner Amy Rutherford says 80 per cent of toys are made in China.
“Even if we’re buying it from a French company, it’s made in China,” she said.
Rutherford warns that Trump’s 145 per cent tariff on Chinese imports will soon price her merchandise out of reach for most consumers. She used a stuffed animal as an example: It normally retails for US$28, but tariffs will raise the price to nearly $75.
“I wouldn’t pay $75 for it,” she said.
It’s the same story down the street at Rutherford’s other business: a stationery store, where greeting cards and paper products from Canada feature prominently.
Those products are temporarily exempt from Trump’s threatened 25 per cent tariff on Canada, but the risk of duties returning is taking a toll.
“Certainty is not a thing we’re relying on right now,” she said.
Time is running out to find clarity.
The summer is critical for small retailers, because it’s when they plan and order for the busy winter holidays – their make-or-break months.
Not knowing if tariffs will return, or what imports will cost, makes it nearly impossible to plan or purchase.
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What’s worse, Rutherford says her suppliers in China have warned they may not ship anything to the U.S. unless the tariffs are dropped.
“It’s unaffordable for them and for us,” she said.
Beer Bottles are ready for filling at Port City Brewing in Alexandria, Va.
Brett Carlson / Global News
Brewery owner Bill Butcher says the tariffs have become an unwelcome ingredient in his beer.
Port City Brewing in Alexandria, Va., relies on grains from Canada and Europe, aluminum cans from Canada, bottle caps from Mexico and kegs from Germany.
“The whole supply chain is just so intertwined internationally,” Butcher says, “you can’t really say I’m only going to buy American ingredients to brew great-quality beer.”
The Canadian barley malt he uses thrives in the cold, but tariffs have put a chill on imports.
Butcher says his suppliers have warned him that the temporary pause on Canadian tariffs has not brought any certainty.
“They sent us a letter saying ‘changes are coming.’”
The impacts have rippled through breweries across the U.S.
Aluminum tariffs have increased the price of cans, and Butcher says the big multi-national breweries switched to glass bottles to avoid price increases. With only a handful of bottle producers in the U.S., his small operation has been squeezed out.
“We were informed by our bottle supplier about three weeks ago that they’re cutting us off,” he said.
Butcher said consumers will ultimately pay the price for the tariffs and the ensuing uncertainty. He pointed to the price of a six-pack of his beer, currently $12.99.
“That could go as high as $17 or $18,” he said, as wholesalers mark up their costs.
On social media, the president called businessmen who criticize his tariffs “bad at business” and claimed, “I am the greatest friend that American capitalism has ever had!”
The president has argued that any pain will be temporary and has claimed the U.S. is making “billions per day” from the tariffs.
That’s not the reality small business owners see as they look through their ledgers.
Trump has imposed, paused and retracted tariffs in surprise announcements and unexpected social media posts.
Business owners blamed those on-again, off-again duties for creating a damaging climate, making it impossible to plan.
“We just don’t know day to day what we can absorb and what we can’t,” Rutherford said.
Butcher said it felt as though the White House had not put much thought into the impacts tariffs would have on small businesses.
“There are ways to achieve your trade goals without punishing American small businesses, and without punishing American consumers,” he said.
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