As tariffs take effect, how will Central Oregon businesses, customers see the impacts?
(Update: Adding video, comments from economic commentator, Bend liquor store owner)
BEND, Ore. (KTVZ)-- The recent tariffs enacted by President Trump are causing price increases on certain imported liquors, including tequila and Canadian whiskeys. That means customers may soon notice higher prices on some of their favorite brands.
Economic commentator Thomas Fellows explained Thursday, "If there are retaliatory tariffs, which there already have been in many cases, those breweries and wineries will be in trouble, because they'll face retaliatory tariffs. This will lead to decreased demand and less revenue overall."
In response to President Trump's 25% tariffs on Canadian goods, Canada has implemented its own set of counter-measures. China has also retaliated with up to 15% tariffs on U.S. goods.
Angela Chisum, the owner of Trailhead Liquor in Bend, told us, "My greatest concern at this moment would be Canadian whiskey. And a lot of our barware comes from China. So, unfortunately, I think a lot of those prices would go up. "
President Trump says the tariffs are to hold Canada and Mexico accountable, pointing to national security reasons and the drug crisis.
It's not just liquor stores that could feel the pinch.
The tariffs are also affecting other sectors, including automotive shops and grocery stores, leading to price hikes on various goods.
Redmond-based Central Oregon garage door recently sent a letter to customers advising of a 5% price hike due to suppliers increasing their costs.
Owens says, "The people that will be most disproportionately affected by these tariffs are sadly the lower, lower-middle and middle class. This is because they spend much of their money on food, fuel and utilities."
Trailhead Liquor says tariffs haven't hit their sales yet, but warns customers should be prepared
Chisum said the questions are: "What is a customer going to be willing to spend on that? And if it's worth it for us to carry it anymore? "
