News Summary
Arizona small business owners, including brewery representatives, gathered to discuss the financial strain imposed by tariffs during a roundtable hosted by Attorney General Kris Mayes. They expressed concerns over increased material costs and competitive disadvantages against larger corporations. The discussion highlighted the broader economic implications of these tariffs, which could affect profitability and investment decisions within the brewing industry. As a Supreme Court ruling looms, many business owners are anxious about the future stability of their operations.
Arizona small business owners gathered for a roundtable hosted by Attorney General Kris Mayes to express their concerns regarding the impact of tariffs on their operations. The meeting highlighted the significant financial burden small businesses are facing as they attempt to navigate the current economic landscape shaped by these tariffs.
One such business is OHSO Breweries and Distillery, which has been feeling the strain of increased costs due to imported materials. The operator of the brewery, John Goodstein, revealed that much of their equipment, which is primarily stainless steel sourced from China, has seen price hikes. Although OHSO aimed to ramp up production, the costs of materials have risen sharply, adversely affecting their ability to operate efficiently. Specifically, the cost to produce a case of 24 beers has increased by approximately 50 cents.
Goodstein pointed out issues with delays and the unavailability of some products stemming from the tariffs, emphasizing that costs for packaging materials including plastic, aluminum, and stainless steel have also escalated significantly. This trend is creating a competitive disadvantage for smaller breweries, as larger counterparts may be better equipped to absorb these additional costs and disruptions.
The Arizona Craft Brewers Guild was also present during the discussion, where the broader challenges posed by tariffs were explored. Attorney General Mayes emphasized that these tariffs not only diminish profit margins for businesses but also can lead to long-term economic challenges for consumers and the community. She is currently awaiting a Supreme Court hearing that will address the tariffs originally implemented under the Trump administration. A lawsuit regarding these tariffs was filed several months ago by Mayes and other attorneys general.
Oral arguments concerning the tariffs case are scheduled for early November 2023, indicating a potential shift in policy depending on the court’s ruling. Mayes reiterated the damaging effects that tariffs have had on everyday lives and the economy as a whole.
During the roundtable, the increasing financial strain on Arizona’s breweries and small businesses was a recurring theme. Governor Katie Hobbs and Representative Greg Stanton have also voiced their concerns regarding how tariffs affect the brewing industry. Hobbs noted that the added costs are particularly acute for breweries with attached restaurants, emphasizing that many brewers are struggling to maintain profitability.
Stanton highlighted worries among brewery owners about essential material costs, especially aluminum sourced from Canada, with price fluctuations creating challenges for planning and budgeting. Jon Lane from OHSO Brewery discussed the speculative pricing adjustments regarding canning and selling products, which adds further uncertainty to their operations.
Hobbs elaborated on the harmful implications of the existing tariff policies, stating that the uncertainty surrounding these tariffs complicates investment opportunities and hiring decisions for small businesses. The overall economic environment is deemed highly volatile, causing anxiety among business owners about their future stability and the potential inability to compete against larger corporations.
As the roundtable came to a close, the sentiment among Arizona small business owners reflected frustration and worry over rising costs and the ongoing impacts of tariff policies. Many expressed a strong desire for a clearer, more stable economic landscape that would allow them to focus on growth rather than managing unforeseen challenges caused by tariffs.
Deeper Dive: News & Info About This Topic
- ABC15: Arizona Small Businesses Impacted by Tariffs
- Wikipedia: Tariffs
- KTAR: Small Business Tariffs Affecting Breweries
- Google Search: Impact of Tariffs on Small Businesses
- Herald Review: Small Businesses and Trump’s Tariffs
- Encyclopedia Britannica: Small Business
- U.S. Chamber: Trade Tariffs and Small Businesses
- Google News: Small Businesses Tariffs
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