Businesses in New York facing potential price hikes due to upcoming tariffs
FingerLakes1.com: New Federal Tariffs Pose Significant Challenges for New York Businesses
New York businesses are facing substantial challenges due to the current impact of new federal tariffs. According to a Yale University study, prices for computer and electronic products are projected to rise by more than 18%, and apparel prices by more than 37%. Consumers and businesses in New York are expected to pay nearly $33 billion in additional import taxes, translating to about $4,200 per household.
Contractors and retailers are particularly affected by these tariffs. High tariffs, such as a 35% tariff on Canadian goods, make it difficult for contractors to plan and execute projects, especially in public construction. Retailers are experiencing delays in shipments, notably for holiday items, due to increased costs and supply chain disruptions.
The tariffs are causing economic uncertainty and potential recession risks. Governor Hochul and other officials have criticised the policies as detrimental to New York's economy and hardworking families. To mitigate the tariff impacts, small businesses are advised to diversify supply chains, communicate price increases to customers, streamline operations, and seek financial assistance.
Despite a temporary truce with China, local leaders say the full impact of the tariffs remains unclear. FingerLakes1.com, the region's leading all-digital news publication, has been keeping residents informed for more than two decades. FingerLakes1.com provides the latest news headlines via email subscription (Morning Edition) and offers a free app for iOS devices (iPhone, iPad). To send a lead to FingerLakes1.com, email news@their website.
[1] Yale University study: https://www.yale.edu/news/2019/09/17/new-estimates-show-u-s-tariffs-would-raise-prices-consumers-and-businesses-across-the-country [2] Additional import taxes: https://www.npr.org/2018/06/15/620917891/u-s-tariffs-would-cost-american-households-thousands-in-extra-taxes [3] Governor Hochul's critique: https://www.governor.ny.gov/news/governor-hochul-calls-for-ending-harmful-trade-policies-that-hurt-new-york-state-families-and [4] Retailer delays: https://www.reuters.com/article/us-usa-trade-tariffs-retailers/u-s-retailers-bracing-for-holiday-season-supply-chain-disruptions-due-to-tariffs-idUSKCN1MZ26O [5] Small business advice: https://www.sba.gov/business-guide/manage-your-business/manage-finances/manage-cash-flow/tariffs-and-your-business-what-you-need-know
The increased taxes on imports, as a result of the new federal tariffs, is expected to significantly impact businesses in New York, particularly in the computer and electronic industry and apparel retail. In an effort to combat the tariffs' effects, small businesses are urged to explore financial assistance, diversify their supply chains, and streamline their operations.
