Let’s Talk Tariffs
Over the last couple of weeks, ridiculous as it seems, I have been on a tariff international press tour. Toys have been the biggest topic, but I get to speak about how it affects all our local businesses. I have been interviewed twice and those stories appeared on ABC World News and Good Morning America and NBC Washington and NBC Nightly News. By the time you read this I will have been on Canada’s national news assuming I don’t get bumped for something more important. And, you can read this article in The Virginia Independent. This is clearly a complicated global issue that is getting a lot of attention. I want to bring it to the local level and give it a bit of context.
Now, I know our audience is a smart and savvy one who is plugged into current issues. You have likely done your research and know what Trump’s tariffs mean for the economy. But, in case you haven’t let me highlight what it means for you, Alexandria, and small business owners.
What it means to you: Prices will go up. Full stop. Costs like shipping, labor, materials, and tariffs are passed on to the consumer through the cost of goods. That is true for absolutely everything. From agriculture to toys to clothing to beauty products this is true. If any part of the cost to make something goes up, then prices will go up. Even things made in America. A candle might be made here, but if the vessel is made outside the US, then the cost will go up. Ten percent may sound reasonable, but I assure you 145% is not. Be prepared to pay more for everyday needs if this should continue.
What it means to Alexandria: If prices go up, then people buy less. Less dollars spent means less money circulating through the local economy. That means schools and critical city services will be affected. Combine that with federal funding being cut drastically and people losing their jobs, and you have a perfect storm that causes Alexandrians to become more vulnerable. This will disproportionately affect people in the lower and middle classes more than our readers, but when it affects one of us, it affects all of us.
What it means to small business: The difference between what we pay for something and the amount we sell it is what we use to buy new inventory and pay our people, bills, and ourselves. If costs go up and people buy less that difference will shrink and will affect your favorite small businesses. It could mean laying off people, less inventory, less income to support their families, and even closing doors.
Does it have to come to this? Absolutely not. This is self-inflicted and can go away. Until this craziness stops here is what we do…
Reach out to our representatives: Write or call your local representatives. Even if they are on your side, it’s important that they hear from you. If they only hear from the opposition, then their position may change. Visit 5calls.org to get more information, phone numbers, and a script to make calling easier. As you know, we believe letters are a great way to communicate! Visit Congress.gov to get addresses for your Senator or Representative. Two things to remember when writing a letter – no curse words and you don’t need to include a return address.
“When you spend $100 at a local establishment, $48 gets circulated in the local economy.”
Continue to buy local: We are so grateful for all of you who make it a priority to buy local. When you spend $100 at a local establishment, $48 gets circulated in the local economy. When you buy from a chain store only $14 stays. Even worse, when you buy online only $1 circulates. But, you already knew that and that’s why you’re here. We thank you. Please continue to buy local so more dollars are available to support you and your fellow Alexandrians. And, if possible, shift more of your dollars to your favorite small businesses. Every little bit helps!
Create experiences: During a recession or any economic crisis the last thing a small business should do is pull back on their marketing. As prices go up, it is imperative that we give our customers a really good reason to spend their money with us. It is always our goal to find meaningful and creative ways to earn your dollars. You can bet that won’t stop no matter what happens!
Thank you for coming to my Tariff TED Talk. I will say that I genuinely believe cooler heads will prevail and all this will end if we do the work. This was a lot and if you stayed with me, I’m eternally grateful. Thank you, thank you, thank you!
