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Tariffs Sting Small Business: Costs Soar
7 Dec
Summary
- US tariffs are increasing ingredient costs for honey and beeswax businesses.
- Small business owners are seeking local alternatives to mitigate rising prices.
- Some artisans are stopping shipments to the US due to tariff complexities.
Small businesses across various sectors are grappling with increased operational costs stemming from US-imposed tariffs. Lincoln Bell, owner of Sweetie Bees in Rothesay, reports that his ingredient supplier's acquisition by an American company has more than doubled, sometimes tripled, the prices of crucial components for his honey and beeswax products. This situation compels him to explore cheaper sourcing options to prevent price hikes for his customers.
Karen Larter, who runs Lavender Moon Farm in Malden, also experienced significant cost increases for ingredients like cocoa butter and coconut oil, as her supplier was based in California. After research, she successfully transitioned to a Toronto-based supplier, emphasizing the importance of supporting local businesses. This shift was necessary as a 90 percent price increase made product creation challenging.
Beyond ingredient costs, the logistical complexities of tariffs are also creating barriers. Oromocto woodcarver Gary Crosby has ceased shipping his products to the United States, citing excessive paperwork and confusion at the border. While he has found alternative markets, he expresses a desire to resume US sales once the tariff issues are resolved, though the current situation makes it unfeasible.
