Detroit small business owners are expressing concerns over the impact of fluctuating tariffs on their operations, with some stating that these additional costs threaten their survival.
Rachel Lutz, owner of The Peacock Room clothing store in Detroit, commented, “As small businesses, we are even more vulnerable. We have a disproportionate advantage when it comes to these tariffs.” She recently ended a business relationship with an English vendor due to rising tariff costs. “I tried to place a $2,000 fall handbag order… my $2,000 order would have had over $1,500 of import fees and taxes. I had to cancel the order and now I’m going to have to figure out how to replace this supplier,” she explained.
Several small business owners gathered at Lutz’s store on Wednesday to discuss their concerns about tariffs’ effects on their operations. Craig Batory, owner of Craig’s Coffee in Detroit, said, “I was absorbing that cost at first, but now I’m actually increasing prices and slowly moving that cost to my customers.” Batory imports coffee beans from Brazil and faces challenges because his product cannot be grown commercially in the United States. He stated, “Coffee can’t be grown commercially in the United States so I’ve been making more transitions to buy more domestic products for my brand.”
Jeff Rightmer from Wayne State University noted that businesses like coffee shops operate on thin margins. “You think about some of those places; they’re operating on very thin margins, 1% in some cases. An increase in cost can really affects their bottom line,” he said.
Charity Dean from the Michigan Black Business Alliance expressed urgency for change: “We are screaming that we need change.” She urged lawmakers at all levels: “What I’m asking is for every elected official to hear the voice of the small businesses that employ the communities that you serve.”
Customers also recognize local businesses’ struggles. Josette Hejka expressed her commitment by saying she supports local establishments whenever possible: “I make my coffee at home if I can’t afford it and I’m frugal when I can but if I go get coffee; I want to support local.”
Lutz emphasized community support’s importance during this challenging period: “Consumers have to ask themselves how appreciated and needed in the communities… because if we don’t survive; they’re going to have their neighbors lose jobs less tax revenue,” she concluded.
