Local businesses react to tariffs going into effect
ST. LOUIS, Mo. (First Alert 4) - “We knew they were coming at some point, we at least have some certainty around what it’s going to be, it’s going to be 25% on Mexico and Canada, it at least lets us forecast what those price increases will be from our manufacturers,” said Justin Breckle, Owner of Authorized Appliance.
Breckles says the past month of uncertainty surrounding the tariffs was awful. Now, that they have taken effect, he can plan for his business accordingly and decide what he can absorb so his customers don’t get it all.
Appliances are just one of the many items that will increase in price soon.
“We have highly integrated supply chains, products that are supplied to the American market that heavily rely on Canadian factories and Mexican suppliers because it’s a part of the North American Free Trade Agreement,” said Washington University, Panos Kouvelis, Professor of Supply Chain.
Kouvelis says almost everything we buy will be affected: Cars, electronics, gas, appliances, building materials, and of course, groceries.
“We’re already experiencing higher pricing, higher labor costs, and everything else that just goes along with everything else that’s going on nowadays,” said Mike Orlando, Owner of Anthony’s Produce.
They get watermelons, tomatoes, cucumbers, green peppers, and avocados from Mexico. Unfortunately, even with the pause, you can’t stock up on produce like you can in other businesses.
“Wasn’t too worried about it as far as inventory issues I don’t think we’re going to run into anything, a lot of the manufacturers already have planned price increases so we were already planning for that,” said Trent Hohman, Showroom Manager at Slyman Bro’s Appliances.
At Slyman’s they got to prepare just like Authorized Appliances, but Breckle thinks this will affect how many customers will be shopping for non-essentials in the future.
“Consumers may wait until prices go back down, it really comes down to if this is really a want or is it a need,” said Breckle.
It’s unclear how long the tariffs will be in affect.
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