'We can't float that': Local business owners discuss tariff impacts
AUSTIN (KXAN) — The cost of aluminum and steel coming into the United States just got more expensive. Overnight, President Donald Trump’s 50% tariffs on those materials went into effect.
Businesses in Austin said they are feeling the added cost from tariffs on different products and countries.
One of those businesses is Toy Joy. The store has a colorful array of games and toys on its shelves.
Chief Operating Officer Robby Pettinato said nearly all of their items traveled across the world to get here.
“I don’t think there’s anything more iconic as far as what comes from China than toys and gifts,” Pettinato said. “A lot of it’s in Vietnam or Indonesia or Malaysia.”
Within the last few months, the cost to bring them went up as President Trump put forth his tariff plans on imports from those countries.
“A lot of vendors are just putting a blanket tariff surcharge on the invoice,” Pettinato said.
Pettinato joined other business leaders during a tariff town hall meeting on Wednesday. They discussed the trade war’s impact on the region’s economy.
“Some vendors that we’ve been working with for 20 something years are literally just freezing their operations because they can’t afford to bring in the product that they’ve already paid for and manufactured.”
Robby Pettinato, Toy Joy Chief Operating Officer
‘Uncertainty around the tariffs’
A new report by the nonprofit Farmers for Free Trade said Texas importers paid $1.5 billion in tariffs in March. The report claimed that was a 167% increase compared to last March.
Now, the recent increase in tariffs on steel and aluminum is causing concern for local breweries.
“We can’t get our cans out of the port because of these tariffs and the uncertainty around the tariffs.”
Dave Childress, Founder of Fast Friends Beer Co.
But the tariffs have not hurt everyone. In April, Made in America Manufacturing told KXAN its seen some benefits.
“We are already seeing new opportunities. There’s a new customer of ours that’s bringing some work in from Canada and giving us the opportunity on,” said owner and president Bradan Eudy.
Still, for many these are uncharted waters. Some businesses said they are left navigating the unknown, as they wonder if more tariffs will come.
“If this starts hitting a year, two years, three years, and our revenue continues to shrink,” Pettinato said. “We can’t float that.”
