NC businesses, organizations adjust for potential effects of tariffs

RALEIGH, N.C. (WTVD) -- President Donald Trump announced broad tariffs on several countries during an event Wednesday afternoon in the Rose Garden, calling it "Liberation Day in America."

"In short, chronic trade deficits are no longer merely an economic problem, they're an emergency that threatens our security and very way of life," said Trump.

The reciprocal tariffs will see the US charge half on imports of what countries charge US businesses, with a minimum of 10%. Trump said the tariffs would spur investment, bring jobs back to the United States, and lessen the country's dependence on the production of key products, including pharmaceuticals and chips.

Though he has acknowledged the possibility of short-term disruptions, the administration believes it will pay off in the future. Some economists are skeptical.

ALSO SEE | What's in Trump's sweeping new tariff plan?

"The only way this could be good in the long-term is if it's a negotiating tool, and it gets us to fairer and freer trade with other countries," said Jeffrey Dorfman, an Economics Professor at NC State University.

Dorfman said the ability to ramp up manufacturing can take years, as certain products are largely all grown or produced overseas.

"There are basically no shoes made in the (United States). They're all imported. All the consumer electronics essentially are imported. There's lots of stuff that there is is no way around," said Dorfman, who added steel, aluminum, and certain fruits and vegetables likely will become more expensive.

Further, he questioned whether job creation will be a net positive.

"We've shown before when we've put tariffs on steel in the past, that the number of steel jobs saved in the US is less than the number of jobs lost in industries that use that steel as an input," Dorfman noted.

Stock futures dropped sharply in after-hours trading, following a trading session in which the DOW, Nasdaq, and S&P 500 all finished up.

Some businesses have worked to stock up on supplies ahead of the announcement to limit the effect on consumers.

"We've had a few import companies already put out price increases, and we're waiting on the word for others," said Alex White, general manager at Cooper's Furniture in Cary.

The store has been open for 96 years, with White working there for nearly three decades.

"(We have) loyal customers. Generations of repeat customers that love our store. (They) love what we offer - a low-pressure atmosphere with quality furniture. And we're glad to see them," White said.

To this point, they've been able to hold off on any price increases to products, though White said he believes customers are understanding of the effects of tariffs. He adds they also work with several US-based companies, which have already shared they are prepared to meet needs.

"We've received word from several of them saying, 'we're made in America. We're here now. We've got product in stock.' You know, basically switch to us to avoid the tariffs," White said.

Certain food products are broadly imported from overseas, making it difficult at times to source certain options. Increasing prices have coincided with increasing requests for help at the Food Bank of Central and Eastern North Carolina.

"Food insecurity in our communities is at its highest point in nearly 20 years. We're talking higher rates of hunger right here in our 34 counties than we had even at the peak of the pandemic," said Jason Stephany, the Vice President of the Food Bank of Central and Eastern North Carolina.

On Wednesday, a large group of volunteers arranged boxes of non-perishables, though Stephany said it was perishables that are particularly affected.

"We're talking about some of the most expensive items at the grocery store - meat, eggs, fresh fruits and vegetables - those prices are going up even further. And now families are having an even more troubling time making ends meet," Stephany said.

However, egg prices appear to be trending down. According to the Agriculture Department, wholesale eggs dropped to $3 per dozen, a 9% decline from the prior week. The American Farm Bureau said the lower costs come from noticeably fewer bird flu cases. Another factor is that consumers have been buying fewer eggs, which has helped stores restock.

Separate from the tariffs, the Trump administration has instituted several federal cuts, set to affect funding at food banks. Now, staffers are asking supporters to reach out to legislators to address these cuts.

"When we're going out to a small farm, and the funds that we had from the federal government to purchase those food sources are cut steeply, we no longer have access to those products," said Stephany.

Hours after the tariffs were announced, Triangle business owners acknowledged that if they go into effect, they're likely to have an impact on the prices their customers pay.

"I'm sure it's going to impact basically every product that we do in both the restaurant and groceries," said Chari Kambara, who owns Bharath Café and Bharath Bazaar in West Cary. The overwhelming majority of the products Kambara and his business partner, Madhu Sunku, come from India - but they also purchase some dairy and produce from Canada and Mexico.

"Around 80 to 90% like, is stuff from India only and especially all your groceries, oils, vegetable oils, dairy products," he said.

The business partners spoke with ABC11 on Wednesday night, hours after President Trump's announcement of sweeping, reciprocal tariffs with trading partners around the world. India, for example, would face a 26% tariff on all goods coming into the US, effective next Wednesday. Kambara said that could impact what his customers pay.

"End of the day, what happens is we have to pass the charges to the consumer, basically. The consumer is going to take a beating," he said.

In Raleigh, Mario Longo at Vic's Italian Restaurant said he 's still hoping for the best - but that currently, most of the ingredients and products he works with would be subject to the tax.

"99% are Italian imports," he said. "My wine comes from there, all my pasta, my sauce comes from there, oil."

Vic's has been a Raleigh staple for decades, and Longo said he's proud to have been able to keep prices steady for most of them. With recent inflation, he says that's already been a struggle - and he's hoping a better solution can be found soon.

"I hope everything works out for the best for everyone," he said. "I want to be here more some more years. I don't plan to get out of here."