BERRY HILL, Tenn. (WKRN) — Tariffs on goods from Canada, Mexico and China could force businesses to make tough decisions and possibly raise prices. However, the full-scale impact of these tariffs isn’t yet clear.
Tariffs introduced by President Donald Trump — a 25% tax on Mexican and Canadian imports and a 20% tax on Chinese goods — went into effect Tuesday.
“There could be some short-term disturbance, but long-term, it is going to make our country a fortune,” President Donald Trump said, according to ABC News.
As for area grocers, the effects are yet to be seen.
“A majority of your avocados are coming from Mexico — that’s everywhere, whether they’re organic [or] non-organic,” CEO and farmer at Smokein’ Oaks Organic Farms, Justin Head, said.
Smokin’ Oaks Organic Farms has been known for offering fresh, locally-sourced produce and products. Head told News 2 that while foreign produce might be affected by these new taxes, the store relies on locally-sourced products, so the impact felt at the Berry Hill store isn’t expected to be huge.
Produce items like avocados, currently carried at Head’s store, could see a 25% increase in price, but Head said he’s taking a wait-and-see approach.
“With the cost of things continuing to really go up, we have to be able to adjust our prices and sometimes we just can’t do that to compete realistically,” Head added.
“Small businesses, whether it be a small farm or business, we cannot handle the price fluctuations as a larger company can,” Head said. “We just can’t. There is nothing that softens the blow, so if something that we are purchasing goes up 30, 40, [or] 50% in one month or two months, we can’t absorb that cost. Then, we will make a decision if we want to pass that along or just not carry that product.”
Head said it would really come down to impacts on materials or labor that could drive up prices as well.
“The unique part about folks coming into here [is that] you get to talk directly to me or other farm staff and we know exactly what we are doing to our animals,” Head said. “We know exactly how local produce farms — the way they’re producing and handling their produce.”
Head said shopping locally could be beneficial as produce and poultry prices fluctuate.
“You [also] have environmental impacts,” Head said regarding the benefits of local shopping. “You have supporting your local farms, which is vastly important for many different factors, and you have supporting your local economy, keeping traffic off the roads from shipping so much.”
