MILWAUKEE– As tariffs on China and trade ally countries such as Canada and Mexico, small businesses alike across Wisconsin and the Milwaukee area are starting to feel the squeeze of rising costs.
One company that is most impacted would be Williams K. Walthers Inc. which is responsible for designing and selling model trains. Stacey Walthers is the company’s current president and says that she relies heavily on companies such as China, Vietnam and Taiwan to create and paint the model trains that are sold back here in America.
“I have a container that is in transit right now cross the sea,” said Walthers on Wisconsin’s Afternoon News. “We thought that shipment would only be impacted by a 20% tariff, because when it left, it left on March 25th. But it was hitting Canada first. So now that it’s hitting Canada, I’m going to have to pay close to $400,000 in tariffs for my trains.”
The typical cost of a Williams K. Walthers boxcar was $34.98 has now been increased to $61.98. Walthers says that customers who are paying for a hobby will most likely not pay that cost for an item such as that.
Further in Milwaukee at Lakefront Brewery, president and co-founder Russ Klitch says the tariffs on Canada have stopped the Brewery from selling any of it’s gluten-free beer over the boder, which accounts for 4% of the company’s sales.
“I just got a price increase today on cans that went up more than half a cent per can,” said Klitch. “You get increases throughout the year, but this cost increase was definitely caused by the tariffs.”
Klitch says Lakefront will upfront the cost of the cans this time, but says that there are no options at this time to switch to glass bottles.
“Glass takes too much equipment and all that equipment comes from Europe. Even though a lot of glass bottles are made in Milwaukee or Waukesha, but it would cost too much to switch,” said Klitch.
Even the price of food at the grocery store is starting to cost more.
Chris Tenuta of Tenuta’s Deli and Grocery Store in Kenosha says the costs of goods being sent to the his store has increased.
Due to an increase in cost for imported goods, Tenuta states that he will have to raise prices for customers in order to make ends meet.
“We have high end products, we have low end products. The money is there, but now if you tighten that up it’s going to be that much harder to convice people to spend that money,” said Tenuta. “The margins are very thing when it comes to my line of work. Everybody thinks you’re making a ton of money and that’s not true. The cost of employees has gone up crazy and the product has gone up. Sooner or later, someone is going to have to pay that cost.”
As industries continue to feel the pressure of higher costs, consumers are starting to adjust their spending habits as the announcement of any more tariffs could cause prices to shoot up unexpectedly.
