- Mar 11, 2015
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Trump is killing the economy.
Tariffs lead owner toward planned closure of local furniture store
On Wednesday, President Donald Trump is expected to announce broad, reciprocal tariffs that will go into effect immediately.
Trump promises to reshape U.S, trade policies in a way that will benefit Americans, but many economists don’t see it that way.
They predict the tariffs will lead to high prices for U.S consumers and a potential slowdown of the American and global economies.
Small local businesses, like My Home Contemporary Furniture in Merriam, Kansas, are already feeling the effects.
The store located at 5400 Antioch Drive will be closing for good.
The furniture store has been serving the community for four years, but owner Henrik Svendsen said the uncertainty of tariffs on imported goods is the reason they are making the difficult decision.
“I don’t see any future with the high tariffs to keep the store,” he said.
Right now, Svendsen already pays a 25% tariff on furniture they get from China, but with the new tariffs the Trump administration is planning to add, Svendsen said it will be impossible to afford.
“When I order a whole container from Italy it’s $100,000. If there are 25% tariffs on that, I pay $25,000 more,” he explained, “I have to add it to the consumer, it’s not something that I can absorb.”
That means the new tariffs won’t only affect importers but also customers having to pay more for furniture since Svendsen said most of the furniture in the U.S. is imported.
“A nice reclining sectional from Italy that we now sell for $8,000, if he does impose the 25% tariffs on Italy, we would have to sell it for $10,000.
Tariffs lead owner toward planned closure of local furniture store
On Wednesday, President Donald Trump is expected to announce broad, reciprocal tariffs that will go into effect immediately.
Trump promises to reshape U.S, trade policies in a way that will benefit Americans, but many economists don’t see it that way.
They predict the tariffs will lead to high prices for U.S consumers and a potential slowdown of the American and global economies.
Small local businesses, like My Home Contemporary Furniture in Merriam, Kansas, are already feeling the effects.
The store located at 5400 Antioch Drive will be closing for good.
The furniture store has been serving the community for four years, but owner Henrik Svendsen said the uncertainty of tariffs on imported goods is the reason they are making the difficult decision.
“I don’t see any future with the high tariffs to keep the store,” he said.
Right now, Svendsen already pays a 25% tariff on furniture they get from China, but with the new tariffs the Trump administration is planning to add, Svendsen said it will be impossible to afford.
“When I order a whole container from Italy it’s $100,000. If there are 25% tariffs on that, I pay $25,000 more,” he explained, “I have to add it to the consumer, it’s not something that I can absorb.”
That means the new tariffs won’t only affect importers but also customers having to pay more for furniture since Svendsen said most of the furniture in the U.S. is imported.
“A nice reclining sectional from Italy that we now sell for $8,000, if he does impose the 25% tariffs on Italy, we would have to sell it for $10,000.
MSN
www.msn.com
