Local businesses bracing for effects of new tariffs
Solo Vino has been a Selby Avenue staple for more than 20 years, developing a loyal customer base that the shop will rely on as new tariffs on imports go into effect.
“Unfortunately, I fear the damage is going to be quick and swift,” said Chuck Kanski, Solo Vino co-owner. “My fear is we’re going to lose some independent bottle shops and we’re going to lose possibly some of these vendors.”
A 10% tariff on all countries goes into effect starting at midnight Saturday. The following Wednesday, imports from select countries will face higher tariffs.
Just about every part of the wine industry will be affected, according to Kanski.
“The glass, the cork, the aluminum foil,” he said. “This tariff is going to directly affect a lot of independent bottle shops. The state of Minnesota has 70 vendors, and most of them have import licenses, so 70 companies that are also going to feel this pain, and no one really knows how this is going to play out yet.”
Importers typically pay tariffs when the products arrive in the U.S. Vendors then sell it to shops and restaurants.
“We have a vendor that brings in only wines from South Africa; we have another vendor that we know that only brings in wines from Greece,” he explained. “There’s no country on the planet right now that’s not going to feel this tariff and that’s a problem.”
He expects the additional costs will be felt by consumers.
“If a $12.99 wine is going to be $16.99 or $17.99, we’re going to have to try to find a new $12.99 and sometimes those wines don’t exist so it’s going to be a challenge for sure,” said Kanski, who also added that they carry many wines from small family producers that may now be in jeopardy. “Some of these wines, if they get clipped from import portfolios, it’s very difficult for them to get hooked up with another.”
Minnesota-based outdoor clothing company Storm Creek is also expecting new tariffs to “have a huge impact.” The Eagan venture sells its products to a variety of retailers, from Minneapolis boutiques to Vail Resorts.
Company President Doug Jackson explained the majority of its high performance clothing comes from Vietnam.
“We just can’t make it here with labor; it would be at least 10 times the price, so we do import,” he said.
President Trump this week called for a 46% tax on imports from Vietnam if a deal isn’t reached.
“It was quite a shock,” said Jackson. “We will feel it right away because we have product coming in. We have product arriving next week.”
While he said they do have inventory to delay immediate changes, customers will feel the impact.
“We’ll have no choice but to up our prices, there’s no option really,” said Jackson.