WEST DES MOINES, Iowa — On this Small Business Saturday, some business owners are concerned about the effects President-elect Donald Trump's potential tariffs could have on them.
Next year, it could cost Sassy’s Boutique owner Cindy Boeyink more to buy her apparel imported from Canada and Mexico. Trump is eyeing a potential 25% tariff on goods from Mexico and Canada or a 10% tariff on all imported goods.
“Ever since COVID, our shipping costs have really skyrocketed,” Boeyink said. “So additional tariffs would be even more scary for our business.”
Iowa State University economics professor Chad Hart said clothing, electronics and produce would be most impacted if the tariffs occur. He explained that the tariffs would generate money for the federal government.
“These tariffs can be used to create revenue,” Hart said. “So there is a financial incentive there.”
Hart said prices on goods will likely increase at the same rate as the tariff. It will ultimately be up to businesses to decide whether or not to hand off the tax to consumers.
“How much of that 25% do they pass on to consumers, or how much do they try to absorb?” Hart said. “That's going to be sort of another wild card here.”
This is a thought that has crossed Boeyink’s mind.
“It would be very hard to add additional cost,” Boeyink said. “We would, more than likely, as a small business, have to pass it on to our customers.”
Boeyink is already looking at going with other vendors to stock up her shop in the new year.
“We’ll go to our vendor market in January, see what the talk is at that point in time and kind of go from there,” Boeyink said.
Additionally, more people are expected to hit up stores this holiday season before the potential tariffs take effect.