Local business owners, farmers discuss impact of tariffs

Farmers, small business owners, and experts gathered in Raleigh earlier this week to discuss the recent trade war’s impacts on their operations, customers, suppliers, and distributors and how to navigate the next move in the trade war.

 President Donald Trump announced on April 2, or “Liberation Day,” that he would impose a 10% tariff on US imports from all countries. Trump asserted that trade economic practices have created a national emergency, and tariffs would strengthen the United States’ economy and protect American workers. 

“Farmers want market access not broad tariffs,” Brian Kuehl, executive director of Farmers for Free Trade said in a statement. “US farmers and ranchers depend on trade for their survival; while supporting the Administration efforts to seek balance trade when it is needed and targeted, we are extremely concerned about universal tariffs that could have a huge cost for farmers themselves.”

Following this announcement from the Trump administration, Farmers for Free Trade launched a tour across America, holding townhalls in significant farming states. They came to Raleigh earlier this week and have already held town halls in other major farming states, such as Tennessee, Colorado, and Texas. 

According to a Farmers for Free Trade report, in April 2025, importers paid $515 million in tariffs—an increase of $337 million (190%) compared to April 2024, even though the total value of imports fell by 14%. Notably, $408 million of these tariffs (almost 80%) resulted from executive actions, amounting to an additional $14 million per day in tariffs imposed solely at the President’s discretion.

“Tariffs are a tax on an imported product,” explained Dr. Michael Walden, a professor and economist at North Carolina State University. He explained that the importer, not the exporter, pays tariffs. However, when the United States raises tariffs on other countries, the tariffs on US exports are often raised in retaliation.

“That’s where I think our farmers are hit the most, continued Dr. Walden. “Farmers in North Carolina export just shy of $5 billion in products annually. If China is charging a 50% tariff, that probably means that they (farmers) are going to sell less because that’s raising prices in China. So if they import anything, they are paying a tariff; if they export something, they are probably going to export less because of the tariff.” 

Dr. Walden addressed why the Trump Administration is raising tariffs right now. President Donald Trump has stated two primary goals. First, bringing manufacturing back to the United States.

“That’s not going to happen, and if it were to happen, it would take decades,” said Dr. Walden. “We’d have to build factories and hire workers, (…) and right now we have a shortage of people who work in manufacturing.”  

The Trump administration’s second stated goal, according to Dr. Walden, is equity in tariffs. Dr. Walden noted this was a valid point, as going into the Trump administration, foreign countries had a much higher import tariff on US goods than the US had on goods imported from foreign countries. Dr. Walden said this was based on a post-WWII mentality to encourage other countries to increase production. 

Dr. Walden’s predictions have proven to be right. Farmers are already experiencing the impact of tariffs as they import products like parts for farm equipment and technology for use in agriculture. 

“I never have an outward, emotional reaction when someone tells me they are raising the price on something,” said Mike Jones, CEO of MAE Farms. “Internally, I react, but I always say, ‘Ok, I understand why you have to do that.’ I have a personal strategy and philosophy. Business is biology; it’s a living thing.” 

Dr. Walden explained that businesses can help build trust and relationships with their customers by explaining why they must raise costs due to tariffs. 

Relationships are crucial to surviving whatever might come next in the trade war, both with consumers and business partners. Josh Esnard, CEO of the Cut Buddy, and one of the founders of Truffle Etopia, a truffle farm in Pittsboro. Esnard emphasized the importance of having good relationships with suppliers, as doing so can help producers like himself absorb the additional cost of tariffs upfront. Most retailers aren’t willing to reduce their profit margin if they are used to turning a specific profit on a product. Esnard explained that he calculated their 13-week cash flow chart at 152% tariffs, planning for the worst-case scenario. 

Small businesses like Cut Buddy and Truffle Etopia are experiencing the impact of tariffs as they import parts to assemble products. Businesses like Trophy Brewing are also being impacted by the tariffs on aluminum and steel.  

Uncertainty frames the entire climate surrounding tariffs and trade. The Trump administration’s yo-yoing on tariffs has made it challenging for business owners and farmers to prepare for what’s to come. 

“Staying the course is what we’re doing, but watching what’s going on,” said Les Stewart, co-owner and chief brewing officer of Trophy Brewing in Raleigh. “I’m trying to talk to people and communicate with people and otherwise really trying to get our message out about the idea that we can’t move forward with this volatility, with this uncertainty, and hope that message convinces our government to approach these factors with much more sensitivity. I think that’s probably the best thing we can do.” 

Most farmers are not investing in new heavy machinery right now because of the uncertainty; however, they are maintaining and repairing their current equipment and feeling the impact of supply chain crunches, delayed shipping, and the availability of parts.  

“It’s not the time to buy a new tractor; it’s not the time to buy a new truck,” said Jones.

While no one can predict the next move in the trade war, farmers and small business owners are already feeling the current trade climate’s impacts, forcing them to shift part of the burden to their consumers. Building and maintaining healthy relationships with customers and suppliers can help support the customer base and distribute the added cost of the tariff. 

The post Local business owners, farmers discuss impact of tariffs first appeared on Carolina Journal.

The post Local business owners, farmers discuss impact of tariffs appeared first on First In Freedom Daily.