FORT LAUDERDALE, Fla. – Surrounded by designer wedding gowns and accessories, Megan Clancy Mejia said she fears the impact that President Donald Trump’s tariffs will have on her boutique in Fort Lauderdale.
The first-time small business owner has devoted herself to Lighthouse Bridal even before she registered her business out of Davie in 2016. She is trying to find ways of adapting to the unprecedented challenge.
“Even if we are shopping and buying from designers that are domestic, they are still importing their goods from China,” Clancy Mejia said.
Trump raised tariffs on Chinese imports to 125% on Wednesday. The 10% baseline tariff went into effect on Saturday. Canada and Mexico already had a 25% tariff.
Trump’s ongoing country-by-country negotiations have made it difficult for small business owners to define the new costs and price increases.
“Before I change my tags on all of my inventory, I want to have a definite answer of what I should mark up the retail price to,” Clancy Mejia said adding, “Moving forward, we’re going to have to add it to the cost of the gown.”
Small business owners also worried about how retail price increases could affect consumer sentiment, as markets respond to fears of a global market meltdown.
Michelle Russell was worried about Dixie Divers, a diving gear shop along Federal Highway in Deerfield Beach. As many diving shops do, their inventory includes imports from Asia and Europe.
Aside from selling equipment such as lobster diving and spearfishing gear, Dixie Divers also offers scuba services, including training courses, rentals, and guided dives. That helps retail sales.
“I think we’re just waiting to see how everything plays out. We’ve had some vendors reach out to us and let us know about the price increases,” Russell said.
These are stressful times for family-owned businesses. Some were also simultaneously feeling the shock of their retirement savings losses and the fear of becoming collateral damage.
Business decisions about hiring or plans for layoffs were difficult while riding the rollercoaster of mixed messages from the White House and the economic forecasters’ reporting on recession fears.
There was relief when Trump suspended some tariffs for 90 days on Wednesday, but the uncertainty remained even for large corporations that did not celebrate Trump labeling April 2 as “Liberation Day.”
The new trade policy also included 25% tariffs on imported cars and promises that the U.S. Treasury would help the IRS implement tax cuts.
“I hope they cut us a break ... because we are the ones that are really feeling it the most,” Clancy Mejia said.