‘Rethink our business’: Massachusetts companies trying to adapt to wide-scale tariffs

Many small businesses say they’re struggling in this era of wide-scale tariffs on imports.

President Trump believes they’re necessary to raise revenue and level the playing field for international trade.

Mahlon Williams is the founder of “I Love Boston Sports,” which has two brick-and-mortar stores, as well as two pop-ups during the holiday shopping season.

Almost all of his stock has some international component.

The Styrofoam used on the back of his custom artwork is up about 35%.

The acrylic used for frames has increased by almost 50%.

He says tariffs are having an adverse effect on this business.

“Whenever you have to react to a situation, it is inevitably going to be more expensive. . . so we’re just having to rethink our business model and right now we’re just absorbing as much as we can, but it becomes very, very tough.”

Last April, President Trump unveiled sweeping tariffs.

“I think tariffs are going to be the greatest thing we’ve ever done as a country. It’s going to make our country rich again. We have many companies and auto plants that are going to open plants.”

Josh Stillwagon, chair of the economics division at Babson College in Wellesley, said, “There are a few instances where economists would tend to support tariffs.”

He believes a case can be made for tariffs to prevent dumping. That’s when a country sells its exports below cost to try to wipe out the competition.

Stillwagon said broad-based tariffs can be tough on small businesses because they can disrupt planning.

He added that some companies will have to pass costs on to customers because their margins were already squeezed.

“That’s going to slow hiring and could be an existential threat for some firms.”

Daniel Danez just started an olive import company in South Boston.

52% of the world’s olive oil comes from Spain, and he is bringing it directly to the US from his family’s farm there.

“At the beginning it was kind of crazy, because it was 50%, then 40%, then 30%, and in the end, 15%.”

He wasn’t sure Titin would be able to survive at some of those higher levels, but now thinks it can, with a modest price increase.

“If 90% of olive oil has to be imported, and you have to pay a 15% tariff, in my case, because it’s from Europe, from Spain, prices will increase.”

Higher prices are already a concern for many shoppers who are sick of paying more for just about everything.

One woman in West Roxbury said, “I think the prices of everything have been rising for a while, so I’m wondering or worried about what that is going to look like.”

Another woman added, “I am concerned. I don’t know what the long-term effects of the tariffs are going to be, but all you have to do is walk into the grocery store.”

Back in Braintree, Williams thinks the real impact on small businesses will not be felt until the beginning of next year.

“That’s when you’re going to see companies once, they’ve assessed how they did over the holiday season, they’re going to decide whether or not they’re going to need to stay open or shut the doors.”

The next test for the tariffs will come on November 5th.

That’s when the US Supreme Court will hear oral arguments about whether or not they were enacted legally by the president, or whether they need congressional approval.

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