(NewsNation) — The Trump administration’s threats of a global trade war have left small businesses facing uncertainty.
Businesses like Begyle Brewing in Chicago say tariffs significantly impact their profit margins. On Thursday, President Donald Trump threatened a 200% tariff on European wine, champagne and spirits.
The proposed tariff is a response to the European Union’s planned 50% tariff on American whiskey. It is expected to go into effect April 1.
Does Canada really have tariffs above 200% on US dairy products?
There is currently a 25% tariff on most goods coming from Mexico and Canada that officially went into effect on March 4 after a 30-day pause.
Kevin Cary, owner of Begyle Brewing, said his mid-sized brewery imports about 200,000 pounds of barley from Canada each year and that the tariffs would hurt the brewery’s margins.
On Wednesday, Trump announced a 25% tariff on all steel and aluminum imports, another expense for Cary’s business as they need enough to produce about 1 million cans each year. He says the back-and-forth is leaving him confused.
“There could be a tipping point where that grain just costs too much, and aluminum also might just cost too much,” said Cary. “If you can’t produce something for a fair price and sell it for a fair price, what’s the point?”
While the brewery could raise prices to offset increased costs, Cary is reluctant to burden his regular customers. “This is sort of what people are willing to pay, and if you go past the point of what people are willing to pay, you’re going to stop seeing people spending money,” he said.
More than anything, Cary wants stability in the policy environment. Since February, the president has made multiple tariff-related announcements, creating uncertainty for businesses.
“It’s hard when you’re managing any business to not really know what you’re going to be able to do in a month, three months, 12 months,” Cary said. “It impacts hiring. It impacts purchasing contracts and relationships that you have with suppliers.”
While many business owners express concerns over the impact of tariffs on production costs and their livelihoods, some California farmers actually support the measures, with one calling it “a painful reset, but a short-term issue.”
“I have concerns, but I’m not panicking,” said Tom Barcellos of Barcellos Farms. “This is a correction that needs to be done. When they talk about a 10% tariff on certain things, sometimes I have to chuckle because Canada already has an over 200% tariff on dairy products going into Canada. So what’s another 10%?”
