Trump prices could cost us $ 454 million in the cooking industry and harm small businesses like Uncle Jerry’s Bretzels in Pennsylvania.
Here is what imports will be the most affected by President Trump’s prices
President Donald Trump’s new prices include additional prices on some of the largest world clothing, electronics and more.
- New prices on products imported such as chocolate and packaging have an impact on small businesses such as the Bretzels of Uncle Jerry.
- Small businesses are particularly vulnerable to prices, potentially confronted with profitability or reduction in staff.
- The cooking industry as a whole should be considerably affected by prices.
Misty Skolnick has lost sleep on what the president Donald TrumpThe prices will mean for its small Bretzel business belonging to the family.
The Bretzels of Uncle Jerry had to interrupt a must -see of 30 years – whole wheat, lower salt and sesame seeds – and the customer’s favorite “all Bretzel” when sesame seeds are passed through the roof after the pandemic.
NOW, price On chocolate, packaging and labeling oblige Skolnick to rethink prices on their Dutch -made Bretzels made by remaining hand.
“The Domino effect could be harmful to us and our partners and our partners from our partners. Uncertainty is difficult at the moment,” said an emotional Skolnick, 44.
The united company of which it is co -owner in the county of Lancaster, in Pennsylvania, has around 30 employees, most of whom carefully provide the Bretzels, who sell online and in independent stores from one ocean to another.
“My father is 72 years old. He worked incredibly hard, and this company is in our blood,” said Slotnick about his co-owner and father, Jerry, who launched the company in 1988. “We are wondering:” Can we allow ourselves to provide a coherent and high quality product at a reasonable price for our customers? “” ”
Larger suppliers and industry will also be affected
The prices, which enter Wednesday, will also affect local companies and managed by the family which provide chocolate imported from Uncle Jerry, which covers their Bretzels with handle -made sourdies and their delivery boxes.
The largest cooking industry will also be affected. Prices specific to the countryincluding those of Mexican, Canadian and Chinese imports, it is estimated that US bakery industry $ 454 million This year, according to the non -profit association American Bakers Association.
The association predicts that the increase in the burden will mainly result from higher ingredient costs and expected disturbances in the supply chain. For example, Bakers imported $ 679 million in Mexico goods in 2024, including $ 96 million in ingredients, $ 56 million in equipment and approximately $ 17 million in packaging.
A 25% price on Mexican imports will cost the industry $ 170 million, according to the professional association.
“The American bakery industry includes a range of commercial manufacturing and retail companies, many families,” the association said in a press release in USA Today. “We recognize the dedication of the administration to strengthen American companies and manufacturing.”
Small businesses are particularly vulnerable
The owners of small businesses like the uncle Jerry’s will be touched by the prices, said Andrew SicilianoHead of global trade and customs of the KPMG accounting firm. “They can deal with challenges in cost management and the maintenance of competitive prices due to prices.”
“Higher import prices can lead to a reduction in profitability or the need to reduce business size,” added Siciliano, calling price uncertainty “The new normal right now.”
Although large companies will probably be able to absorb costs, small businesses like Uncle Jerry do not have a lot of cushion.
Small businesses, which employ almost 50% of Americans working in the private sector And represent 40% of the country’s gross domestic product, will be particularly affected by economic uncertainty, said Ben JohnstonKapitus operations manager, lender and small businesses.
Skonick said that she was trying to suspend the increase in Bretzels prices as long as she could. Sales in January and February increased by 35% compared to these months a year ago. And the gross benefits of the company in recent years have reached between $ 1.5 million and $ 2 million per year.
It is a long path compared to the moment when his father sold bags of Bretzels from door to door almost four decades ago.
“Should we store the inventory?”
But she does not know how to manage the current uncertain commercial climate.
“Should we store goods and have stocks, because we cook daily and ship our fresh products right away?” Skolnick said. “Is this something that we should consider if prices are increasing. Can we lock price agreements with our suppliers? Is it even possible?”
Uncle Jerry’s had to increase prices before. In October, they had to increase the price of a set of chocolate -covered Bretzels the size of the fist of $ 18.99 to $ 22.99. Skolnick thought that the price increase was fair, considering Cocoa prices have reached historic levels.
“We agree for this season, but next year, we don’t know,” said Skolnick. “We will see how much we can absorb. We operate on very thin margins. It’s as simple as that.”
Getting rid of nearly 20 other varieties of Bretzels is not yet in the cards. “It would be a last absolute resort,” said Skolnick.
“We are trying not to panic or react to rumors or hearing. In the end, we try to wait for the facts on the ground before implementing great changes on our side,” said Skolnick. His father taught him not to react too much, but to wait and to see.
“Because if you react to each little thing, it shows a certain instability and your customers will see this and will not like it,” concluded Skolnick. “It’s not good for business.”