Business & Tech

Brookline Businesses, Consumers To Feel Crunch Of U.S. Tariffs

Local business owners are concerned about what the 25 percent tariff on specialty goods imported from the E.U. could mean for them.

Hundreds of speciality goods from Europe, such as French wine and parmesan cheese, may cost more by the end of the month after the World Trade Organization ruled the U.S. could impose a 25% tariff on goods from the European Union
Hundreds of speciality goods from Europe, such as French wine and parmesan cheese, may cost more by the end of the month after the World Trade Organization ruled the U.S. could impose a 25% tariff on goods from the European Union (File photo by Jenna Fisher/Patch Staff)

BROOKLINE, MA — It's already difficult for small businesses in town, and now a long-running dispute between Europe and the United States may make things even more difficult. The World Trade Organization ruled the U.S. could impose a 25 percent tariff on a range of popular food and goods imported from the E.U. and the Trump administration said this week it planed to begin, starting Oct. 18.

This means hundreds of specialty goods from Europe, from the Spanish and Italian olive oil sold at the Olive Connection to the goat cheese sold at Curds & Co. and an assortment of items sold at Allium Market - all small businesses in Brookline - may cost more in the coming months.

"It's a huge concern because the margins are tight in these smaller businesses," Executive Director of the Brookline Chamber of Commerce Debbie Good Miller told Patch. "The larger businesses might be able to absorb some of that cost, but for the smaller businesses it's really tough. It's worrisome."

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Single-malt Irish and Scotch whiskey, European cheeses, sweaters from the U.K., coffee from Germany and olives from France, Germany, Spain and the U.K. are all included in the tariffs.

The move is a way for the U.S. to recoup some $7.5 billion in damages after the European Union illegally subsidized a European aerospace company that competes with Boeing. But local business owners are concerned about what it could mean for them at a time when many are already struggling to compete in an era of Amazon.

Find out what's happening in Brooklinefor free with the latest updates from Patch.

After the WTO approved the tariffs and the White House announced it planned to go ahead, local business community are now scrambling to better understand what it could mean to them and what they can do.

"We are aiming to have a clear understanding of everything by early next week," said Talia Glass who owns Allium Market. "Needless to say, it's going to have very real, very negative impact on businesses like ours as so many of our products will be getting hit with this 25% increase."

The Olive Connection where they specialize in artisan olive oils from impacted countries such as Spain, France, Greece and Italy, is likely to be one of those local shops impacted. Although they also sell oil and foods from places like Turkey, Israel and California, prices will likely go up soon.

"I don't really know what we're going to do our how we're going to go about it," Charles Sapoznik told Patch in an interview. "We're obviously worried, but there's nothing we can do but wait and see. and go from there."

He said several of the olive oil vendors his parents work with are all signing petitions and working with the California olive oil commission to protest the tariff.

"It would be a problem for everyone," he said. "It just seems that would make things very difficult for everyone."

For now, Sapoznik said he's hoping the tariffs don't last long.

"I hope they can figure a way to work together. It seems like the tariffs are working against each other."

Curds & Co General Manager and buyer Julianne Webster said there is a bit of a silver lining. She - like many in the cheese industry - has been watching the back and forth and was relieved that it appears the tariffs won't be 100 percent cost as was discussed earlier.

That would have doubled the cost of certain cheese she buys for the shop and could have been prohibitive for customers.

She's in touch with distributors and is waiting to see how the tariff will impact pricing and when the store will see it.

For now though, it's a waiting game.

"We're going to take it day by day and see how severely it impacts us," Webster told Patch.
She estimates she'll probably end up having to buy harder cheeses that last longer before the tariff goes into effect.

She's now focused on ways to ensure Brookline customers can still count on them.

"We're going to do our best to make sure we have our classic holiday cheese like French style brie and Stilton from England this year - and we want to make sure Brookline has a delicious cheese selection to choose from," she said.

So how can consumers help?

"We can't do anything about the tariffs," which the White House indicated are set to be in place as a temporary solution until a longer term solution gets settled, said Miller, but she said what's important now is that folks who love these mom-and-pop shops in town, continue to support them by shopping there.

"My hope is that if local people know our businesses are working under these constraints, hopefully they will embrace these businesses and show they're local and care about these businesses, that's what we need to do," she said. "Go shop. You're going to pay a few dollars more, but you're going to be investing in a local business. It's worth it."

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Tariff List by ReporterJenna on Scribd

Patch reporter Jenna Fisher can be reached at Jenna.Fisher@patch.com or by calling 617-942-0474. Follow her on Twitter and Instagram (@ReporterJenna).

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