Tariffs affecting some local businesses
May 24—Some local businesses are feeling the impact of President Donald Trump's tariffs, but they are trying not to pass the costs on to their customers.
If you noticed a higher price for the Mother's Day bouquet you bought, it is because flowers grown in other countries are now subject to higher tariffs. About 80% of flowers bought in the U.S. are grown elsewhere. According to the U.S. Census Bureau, the U.S. last year imported $2.2 billion worth of cut flowers and greenery, most coming from Colombia and Ecuador.
"The fact that they can grow year-round gave them a natural advantage," said Society of American Florists CEO Kate Penn.
Locally, in Priceville, Southern Roots Flowers & Gifts is feeling the sting of tariffs. It has been in business for three years.
"Any flowers I get, they're adding a 10% fee to my bill," said Southern Roots co-owner Margaret Wood. "The wholesaler out of Cullman is the one that I deal with, and they told me they had to tack a 10% (tariff fee) on it."
Wood said she has not yet raised her prices.
"If I have to keep paying it, I'll have to do something to make money. ... I'm not really making anything with them doing that," she said. "I've been doing so well that I don't want my customers to say, 'Well, I can't use her any more, she's gone up so high.'"
Wood said she does not want to jeopardize the reputation she has formed.
"I've thought of (telling customers), 'Soon my arrangements starting out at $30 or $35, they're going to start out at $40 and go up,'" she said. "I'm one of those, like, 'Let me throw a few extra daisies in there.' I haven't been doing that because I can't."
Wood said some of her flowers are grown in Ecuador.
"It's not right. ... I thought this was all supposed to be reverse, like be better," she said. "I'm hoping it won't last long. ... I pray every day it'll go back."
Other florists are also dealing with a 10% tariff fee.
"Most of our flowers are South American, so it's just the typical 10%," said Kristen Bentley, owner of Simpson's Florist in Decatur. "We've got other sources that we've tried to be smart about where we're buying from. Our wholesalers have, too. So, it hasn't been too bad."
Jessica Graham, co-owner of Iris & Ivy Floral & Gifts in Decatur, said they have not yet been affected by the tariffs.
"Our wholesaler, it really depends on who they're getting them from," she said. "So far, they have not been affected, therefore it hasn't affected us any yet."
Martin's Family Clothing in Decatur also hasn't been affected by the tariffs yet.
"We haven't really noticed it yet. Reorders, they're starting to go up on some prices, but that's about it. Fall might be a different story," said Charles Christopher, store and operations manager of Martin's in Decatur. "We have enough inventory to last us for a while."
Spring and summer merchandise, Christopher said, has already been purchased and is in a company warehouse in Anniston. He said he does not expect they will end up with empty shelves.
"I assume that it's going to get solved before we get into fall," Christopher said.
Iverson's Auto Service & Tire owner Jody Iverson said tariffs have "affected business in general. People are watchful, cautious."
Iverson's has been in business in Decatur for 40 years. Iverson said the cost of some tires has increased due to tariffs. He said there are four categories of tires, with tier one being the highest end, and tier four being the lowest.
Iverson said tiers three and four are imported, but the tariff cost is not passed down by every tire brand.
"The (tier one) Continentals and the Goodyears and the Michelins, they don't have the tariff. A lot of the warehouses are eating it," he said. "We have like a $3 to $4 price increase per tire since the warehouses are eating it because they know that people won't buy them."
Iverson said he does not worry about the warehouses deciding to start passing more of the costs down to him.
"Because people will stop buying from them," he said. "There's too many warehouses, too many suppliers now. Used to be like three or four, now there's like 20 in this area. They just flood the market."
Some tire brands have not raised their prices at all, Iverson said. As far as car parts go, he said, he has not seen any increase in prices.
"The corporations that sell those parts are too big," Iverson said. "I mean, we might have a small 3%, 5% markup because of tariffs or just cost increases, but we're paying for most of our parts the same as we did two years ago."
Iverson said the tire brands that are being affected are being made in another country and shipped to the U.S.
"They're made in Thailand, Malaysia, China, some in Mexico," Iverson said. "The tier one plants are here, that's why they're so much more expensive. The employees are paid more, the property's more, it costs more to build the building here, codes. You build a tire plant in Malaysia with no codes, no OSHA, no nothing."
Iverson said if more tariff costs do trickle down, he'll have to pass some of the increase on to the consumer.
"But we're not like a lot of other places that have to," he said.
Iverson said he owns his shop and has no overhead and therefore does not owe anyone money, allowing him to absorb more tariff costs.
"I don't have a $5 million building like some others," he said. "We just don't have high overhead like some shops."
—erica.smith@decaturdaily.com or 256-340-2460.
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