KANSAS CITY, Mo. — President Trump's tariffs decisions have continued, with the latest decision coming Tuesday, in which Trump announced he plans to double tariffs on Canadian steel and aluminum to 50 percent.
Kansas City-area businesses like Lucky Elixir Beverage Company are watching the decisions closely.
“It’s something we’re always watching,” said Sean Galloway, who runs Lucky Elixir with his wife. “Just like everything in business.”
Their business is 10 years old, and they primarily sell kombucha, or fermented tea.
Galloway says they buy their cans from a company in St. Joseph and those cans are sourced from Texas.
Trump explained part of his motive behind imposing tariffs is “taking action to end unfair trade practices and the global dumping of steel and aluminum.”
Though Galloway says what he knows of the sourcing for their cans is domestic, he says there are other products that may not be.
“There’s some purchases we’re looking to make in the near future that could affect it, and if that’s the case, we probably won’t make those purchases or we’ll have to charge more for the end product,” Galloway says.
Galloway says their pricing has remained steady for a reason.
“We’ve been very lucky in that we actually haven’t, I don’t think, we’ve actually raised our prices on our cans or bottles since we started,” Galloway said. “We wanted to start with a really sustainable model and not have to just barely get by.”
John Couture is filled with beverages and brewing expertise.
He used to run Bier Station before founding Local Liquid, the only U.S. retail company offering local Kansas City beverages for people to purchase online and have delivered.
“Kansas City is very unique in that people really, really strongly support local here,” Couture said.
But buying local might not be the most cost-effective thing, Couture says, if these tariffs do go into effect.
“For us to be able to survive, we’ll have to pass on some of that cost to consumers,” Couture said.
The trickling down of costs from manufactures to retailers gets more intense on smaller the business.
“We don’t have as much flexibility as a big corporation to absorb some of these big market changes,” Couture said. “So tariffs could be really devastating to local small companies.”
Couture wants consumers to keep in mind that any price increases aren’t the fault of the businesses. He’s dealt with price increases before, and people aren’t afraid to ask questions.
“Consumers have noticed when prices jump up,” Couture said. “They notice when even a six-pack goes up $2. It does have an impact, and it filters down throughout the production stream and into the market.”
For now, manufacturers like Galloway are forced to be hands-off, but Galloway always has his eyes and ears open.
“It hasn’t affected us really at all," Galloway said. "That doesn’t mean it won’t,” Galloway said.
KSHB 41 reporter Rachel Henderson covers neighborhoods in Wyandotte and Leavenworth counties. Share your story idea with Rachel.
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