GREAT FALLS — Recent tariffs imposed by the United States on imported goods are affecting some businesses, and your morning cup of coffee or tea may soon cost a little more.
"My wholesale prices have gone up just about 30% on everything, and some of them are even worse," said Gwendolyn Gunn, general manager of Phoenix Pearl Tea Company at 9 Fifth Street North.
Quentin Shores reports - watch the video here:
Although the tariffs were intended to stimulate domestic production, they have had a substantial impact on industries that rely significantly on imports, such as coffee and tea.
Gunn claims the company attempts to keep its rates as low as possible, but rising wholesale expenses make it harder.
"I'm trying to keep it low for everybody's sake," Gwendolyn stated. “But when things are expensive, unfortunately, I’ve still got to keep my margins to be able to keep the doors open.”
Coffee and tea are two of the world's most traded commodities, yet the United States lacks the climate and infrastructure to grow them domestically. That means practically all beans and leaves are imported, and they now face tariffs of more than 20%.
"Even if it is made or assembled in America, the raw materials came from another country, typically," noted Matt Pipinich, owner of Luna Coffee Bar.
Pipinich says that businesses such as his are struck particularly hard.
In addition to taxes, they frequently incur a rural shipping surcharge due to their location within Great Falls.
"Take a look at if I pay a quarter a day extra for something," he told me. "Just one item over the course of a year — that's $3,000."
Despite increased costs, Pipinich claims he has no intention of increasing prices. His primary focus remains on paying staff and helping his consumers during difficult economic times.
Both business owners admit that the issues are not unique; many Montana businesses are suffering the effects of tariffs and the continuing government shutdown.
