Local businesses face tariff squeeze; are consumers next?

Nine thousand dollars a second. Every hour. Every day.

 

That’s how much the U.S. Chamber of Commerce says small businesses are losing due to the cost of import taxes or tariffs that can range from a 10% to a 145% on global goods.

 

Add it up, and it amounts to almost $284 billion a year.

 

With the recent uncertainty regarding tariff increases on international imports by the Donald Trump administration, small business owners from Daniel Island to Clements Ferry Road are bracing for a potential impact.

 

Proposed tariffs, as high as 145% on Chinese goods and 50% on European Union imports, have some worried that the cost of purchasing global products for their local businesses will become a major strain.

 

Many say they are already feeling the pinch.

 

BUSINESSES BRACE FOR HIGHER COSTS, RISING PRICES

Rommel Miranda, owner of Car Audio Radio and Security (C.A.R.S.) on Clements Ferry Road, said many of his products, including radios, speakers, amplifiers, and even aftermarket leather, are sourced from China.

 

“Some (price increases) are as little as 5% to as much as 35%. For example, one of our SKUs (stock keeping units) was $755, and it jumped to $1066,” Miranda said.

 

While he hasn’t raised prices for consumers yet, he’s absorbed the costs, which has led to cutbacks in other areas such as advertising.

 

Still, Miranda remains optimistic.

 

“I fully believe this tariff scare is exactly that, a scare. Manufacturers use this sometimes to fluff their own pockets and take advantage of the situation,” he said.

 

“I understand the trade deals our president is trying to get done, and kudos to him. It is what it is, a bargaining chip or scare to other countries. This will definitely affect a lot of small businesses, and some might go out of business due to it. However, that’s part of being a business owner – we have to remain fluid and roll with the punches.”

 

SHOPS NEED LOCAL SUPPORT

At Island Expressions, a gift and custom framing shop on Daniel Island, international sourcing is “unavoidable.”

 

Owner Dyan Heineck said many items in her store, like Canadian-made charcuterie boards and European framing moldings, are imported.

 

She’s seen about a 10% cost increase from large suppliers and said keeping up with constantly changing tariff updates has become a job in itself.

 

Though she hasn’t raised prices across the board yet, she expects to increase some ahead of the holidays.

 

“Our profits will not be increased at all, so we’ll just have to count on the support of the community,” Heineck said. “I do worry about many local small businesses having to close their doors if consumers aren’t willing or able to pay higher prices, though.”

 

Heineck said after surviving the COVID-19 pandemic and now the temporary closure of her shopping center’s anchor grocery store due to a renovation, she’s committed to weathering whatever comes.

 

“Now more than ever, it’s important for people to support local small businesses if they don’t want to lose them.”

 

Even businesses that manufacture their own products locally aren’t immune. Beachables, a shop known for its Charleston-made beach totes and garments on Clements Ferry Road, makes its products from Turkish cotton overseas.

 

“We will see an increase in tariffs when it comes time to purchase raw goods,” Beachables general manager Angela Grooms said.

 

Despite the concerns, the company isn’t changing suppliers or panic-buying inventory.

 

“We maintain enough inventory to meet demand and avoid fear-based decisions,” Grooms said. “Charleston is strong and resourceful. Our small businesses are dynamic and can weather economic challenges.”

 

RESTAURANTS AND ALCOHOL

Marie Sauer, owner of Sauer Grapes Wine Shop on River Island Drive, said she’s already taking precautions by avoiding some wine distributors who are raising prices.

 

“I already have an excess of (wine) inventory, so if everyone increases prices, I can wait to buy almost all wine,” she said.

 

Although Sauer said her shop may have extra inventory, it doesn’t mean her shop won’t be affected. “There may be a few wines that I’ll have to order that would be impacted if this goes on for a long period of time.”

 

So far, Sauer has seen distributor increases around 10%, but she isn’t making any immediate changes.

 

“If everyone raises prices, customers won’t mind if I do, too. And I can always support American wine for a while!”

 

Meanwhile, the locally sourced menu at Sermet’s Courtyard on Daniel Island won’t be heavily impacted, but imported alcohol is another story.

 

“All imported wine, liquor, and spirits will be affected by the tariffs,” restaurant owner Sermet Aslan said, noting that paper products and office supplies will be impacted too. 

 

“My suppliers said they’d have to give us a written 45 days’ notice of any price changes, so the earliest anything would go into effect would be June,” he said.

 

“Passing the cost onto customers is inescapable. At the end of the day, consumers are the ones who will absorb the cost. The overall effect will be negative.”

 

WHAT’S NEXT?

With continued court battles and the next round of potential tariffs looming in early July, local business owners say the uncertainty is the hardest part.

 

In South Carolina, small businesses employ nearly half the state’s workforce. Whether adjusting orders, switching suppliers, or holding off on price hikes, one thing is clear: they say they are all counting on the support of their customers to carry them through.