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While the smoke has cleared somewhat since President Donald Trump imposed an unprecedented round of double-digit tariffs on international trading partners in early April, small businesses are still adjusting to a fundamentally altered economic landscape.
Trump has repeatedly said that the tariffs -- currently a base 10% rate for all countries except China, who saw its rate reduced to 30% in mid-May -- will spur a revitalization of American manufacturing capacity and domestic job growth, but it is too early to determine the lasting impact of this plan.
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For John Bradley, owner of Ziggy's Sports in Johnstown, the new tariffs are a constant consideration.
"Tariffs affect everybody, especially for little guys like me," he said.
Ziggy's sells mostly hockey equipment to local skaters and relies on imported products from countries such as China.
Bradley typically places one big order per year in the fall ahead of the coming hockey season.
His previous order, placed in October 2024, which would have arrived between May and August 2025, has been delayed as his suppliers adjust to the new tariff rates, Bradley said.
"The time to buy is now," Bradley said, since the rate on Chinese goods has dropped from a high of 145% to 30%, dramatically lowering his importation costs.
A new trade deal with China would be a "win-win," as it would hopefully return tariff rates to their pre-2025 levels, he said.
"I don't know how long people will be able to stay in business if they have a small shop like myself," Bradley said.
While his current stock of hockey gear will remain at normal prices, Bradley said he expects products from his incoming order to cost more to account for the increased tariff duties.
"I'm optimistic that things will work out and get better," he said.
According to Rakesh Bhatia, a co-owner of Krishan Indian Grocery Store in State College, his business cannot source the majority of their products from domestic suppliers, forcing him to absorb the cost of new tariffs on Indian goods.
Many of the herbs and spices intrinsic to Indian cuisine only grow in that part of the world, and American rice production is not sufficient to supplant what he can source from overseas, Bhatia said.
Bhatia places one large order for new products each quarter, he said, so his business has not yet experienced the price hikes felt by other small businesses across Central Pennsylvania, but will likely feel the increase in his upcoming order.
"There will be some impact (on prices), but I am still unsure," Bhatia said.
Domestic labor costs and certain environmental regulations would have to be reduced before American manufacturing can compete with factories overseas, he said.
According to the U.S. Bureau of Labor Statistics, American manufacturing reached an all-time peak with 19.6 million jobs in 1979. By 2019, that number had fallen 35% to 12.8 million.
"I would love to see goods made in the U.S. again, but (these factories) have gone to other countries because labor costs are lower," Bhatia said.
Stefano Ferrari has found himself in a similar position to Bhatia -- as his businesses also rely on international supply chains for staple products.
Ferrari, alongside his brother Davide and business partner Haley Feaster, operates a number of small businesses in the region all focusing on bringing high-quality Italian dining to an American audience, including the Bedford-based LIFeSTYLE and Cibo Divino Imports.
When tariffs were imposed on the European Union, which administers trade policy for member states including Italy, Ferrari didn't know what would happen to his businesses that rely on imported culinary products.
"We had no clue what was going on," Ferrari said, saying that he opted to wait and see before making any rash decisions.
Ferrari said that his businesses depend on a number of close relationships with Italian suppliers that were built over years, and finding alternative sources for products would be expensive, impractical or outright impossible.
Certain goods such as olive oil cannot be reliably sourced in the U.S., he said, so his business must contend with the new tariff regime to keep shelves stocked.
Another issue that has been precipitated by the new tariffs is cash flow disruptions, he said.
Ferrari said he could pay the shipping costs of large orders in installments before the new tariff regime.
Now, he has to pay shipping costs upfront in order to satisfy tariff fees, which is a noticeable change.
"Tariffs go directly on the final customer," Ferrari said.
After scaling back the high initial rates, which he described as "discounted reciprocal tariffs," Trump settled on a base 10% rate for every country except China, and allowing for sector-specific carveouts on products like consumer electronics and vehicles.
The 10% rate will remain in place for 90 days until July, Trump said, giving time for the United States to renegotiate deals with trading partners.
Ferrari said he reads both American and European media daily in hopes of any news about an updated EU trade deal.
According to Ferrari, Trump has a strong relationship with conservative Italian Prime Minister Giorgia Meloni, which may help bring a swift resolution to the current tariff impasse.
Small businesses like his own should be able to absorb the 10% tariff rate, but any potential rate hike may get "dicey."
Ferrari noted that further rate adjustments could lead to a domestic job loss as businesses struggle to keep up with the increased costs.
"I just don't know what's next," Ferrari said.
Mirror Staff Writer Conner Goetz is at 814-946-7535.