Small business owner fears impacts of Trump's new tariffs

President Donald Trump confirmed new tariffs on imports from Canada, Mexico and China on Monday, sparking concerns among small business owners.

President Donald Trump confirmed new tariffs on imports from Canada, Mexico and China on Monday, sparking concerns among small business owners.

President Donald Trump confirming this afternoon there will be *** new 25% tariff on most Canadian and Mexican goods, as well as an additional 10% tariff on Chinese imports, and all of this is going to take effect starting tomorrow. Now the White House says this is designed to pressure those countries on immigration and fentanyl, while some small businesses we spoke with say the pressure is going to be felt right here at home. It takes 6 people to run this machine from the bottles to the caps. Our bottle caps are manufactured in Mexico. Just about everything is imported inside of Port City brewing company. This is all stainless steel, including the backbone of Bill Butcher's award winning beer. Our pilsner malt, our base malt comes from Canada. That's the main ingredient in. All of our beers and so we're going to have to increase our prices substantially. President Donald Trump said Monday he's following through on his promise of 25% tariffs on most goods coming from Canada and Mexico and an additional 10% tariff on China. Vast amounts of fentanyl have poured into our country from. From Mexico and as you know, also from China where it goes to Mexico and goes to Canada. Experts say tariffs will hit cars, food and fuel the hardest, but you're looking at, you know, *** few cents *** gallon up to maybe 25%. And the price increases will disproportionately hit small businesses. Large businesses have broader supply chains that they can just absorb tariff costs. Coca-Cola and Anheuser-Busch both said they don't expect tariffs to have *** Major impact on prices as they can find substitute products or purchase in bulk. Butcher says that's just not an option for him. People are willing to pay more for *** better quality product, but there are limits to that, and at *** certain point people start looking for other options. Canada is vowing to retaliate against President Trump's tariffs with their own import tax on American-made furniture, guns, and whiskey, among other items at the White House, I'm Christopher Sela, KOCO 5 News.

Small business owner fears impacts of Trump's new tariffs

President Donald Trump confirmed new tariffs on imports from Canada, Mexico and China on Monday, sparking concerns among small business owners.

President Donald Trump confirmed Monday that new tariffs on imports from Canada, Mexico and China will take effect starting Tuesday. The administration says the new taxes will pressure those countries to crack down on immigration and the flow of illegal drugs. But the move is also sparking concerns among small business owners about rising costs."Our bottle caps are manufactured in Mexico," said Bill Butcher, founder of Port City Brewing in Alexandria, Virginia. "Our pilsner malt, our base malt, comes from Canada. That's the main ingredient in all of our beers, and so we're going to have to increase our prices substantially."Starting Tuesday, 25% tariffs will be levied on goods from Canada and Mexico. Trump initially delayed the taxes in February for a month but said at a press conference Monday that there was "no room left" for Canada and Mexico to avoid the steep taxes. "Vast amounts of fentanyl have poured into our country from, from Mexico, and as you know, also from China where it goes to Mexico and goes to Canada," said Trump. An already existing 10% tariff on imports from China will increase to 20%.Economists warn that the tariffs will raise prices on a variety of goods, including cars, food and fuel."You're looking at, you know, a few cents a gallon, up to maybe a quarter," said Scott Lincicome of the Cato Institute. Lincicome warns that small businesses could be hit the hardest. "Large businesses have broader supply chains, and they can just absorb tariff costs," he said. Coca-Cola and Anheuser-Busch have stated that they do not expect the tariffs to significantly impact their prices, as they can find substitute products or purchase in bulk. However, small business owners like Butcher are not as fortunate."People are willing to pay more for a better quality product, but there are limits to that," said Butcher. "And at a certain point, people start looking for other options."Canada has vowed to retaliate against the tariffs with its own tariffs on whiskey, guns and furniture, among other items. Trump plans to impose reciprocal tariffs starting on April 2.

ALEXANDRIA, Va. —

But the move is also sparking concerns among small business owners about rising costs.

"Our bottle caps are manufactured in Mexico," said Bill Butcher, founder of Port City Brewing in Alexandria, Virginia. "Our pilsner malt, our base malt, comes from Canada. That's the main ingredient in all of our beers, and so we're going to have to increase our prices substantially."

Starting Tuesday, 25% tariffs will be levied on goods from Canada and Mexico. Trump initially delayed the taxes in February for a month but said at a press conference Monday that there was "no room left" for Canada and Mexico to avoid the steep taxes.

"Vast amounts of fentanyl have poured into our country from, from Mexico, and as you know, also from China where it goes to Mexico and goes to Canada," said Trump.

An already existing 10% tariff on imports from China will increase to 20%.

Economists warn that the tariffs will raise prices on a variety of goods, including cars, food and fuel.

"You're looking at, you know, a few cents a gallon, up to maybe a quarter," said Scott Lincicome of the Cato Institute.

Lincicome warns that small businesses could be hit the hardest.

"Large businesses have broader supply chains, and they can just absorb tariff costs," he said.

Coca-Cola and Anheuser-Busch have stated that they do not expect the tariffs to significantly impact their prices, as they can find substitute products or purchase in bulk. However, small business owners like Butcher are not as fortunate.

"People are willing to pay more for a better quality product, but there are limits to that," said Butcher. "And at a certain point, people start looking for other options."

Canada has vowed to retaliate against the tariffs with its own tariffs on whiskey, guns and furniture, among other items. Trump plans to impose reciprocal tariffs starting on April 2.

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