SAN FRANCISCO (KGO) — As part of his re-election campaign, President-elect Donald Trump has promised a major rise in the nation’s tariffs.
Trump says the taxes on imports could rise to anywhere from 60 to 100% for countries like China, and from 10-20% on products imported from other U.S. trading partners.
While nothing has changed yet, the proposals are worrying many Bay Area business owners.
“We’re very concerned about it. And we think it’s not good for the consumer and it’s not good for all of the businesses that we deal with,” said Oliver McCrum.
McCrum owns an Italian wine and spirits import business in Berkeley. He worries if the tariffs become reality, they could severely impact his business.
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McCrum tells me to try and offset some of potential harm, he’s already starting ordering months worth of product. A move he hopes, will save him money if tariffs go up next year.
“The concern of course is that storage is expensive and we would have to pay for goods before we would use them,” McCrum said.
Buying in bulk isn’t an option for everyone, says San Francisco-based K-pop store owner Kevin Teng.
“Because with the K-pop industry there’s always new releases and new comebacks and new music on a quarterly basis. So we can’t really pre-purchase something that hasn’t existed yet,” said Teng.
Teng says his store, Saranghello, imports 100% of their products from South Korea.
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He says if the tariffs happen, they’ll have to make difficult decisions.
“Yes, there definitely will be added costs into our products. And, unfortunately, for us to make up for that cost, it’s going to have to be shouldered by our customers,” said Teng.
In the worst-case scenario, if costs remain elevated for long and business slows down, Teng says he might be forced to close his store for good.
“As an entrepreneur it’s important for me to be very adaptive, and I have the team to help support me with that. And, ultimately, we’re not giving up without a fight,” said Teng.
According to some estimates, the proposed tariffs could cost the average American household around $2,600 per year.
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