Some Massachusetts companies are taken in the middle of the fight between the United States and China on prices.
“They gave us a warning,” the owner and chief of Le Madeline told WBZ-TV. “It will go up!”
He is preparing for the price of dry products, such as noodles, from China to increase in the coming months. Nguyen specializes in Vietnamese cuisine, but like many restaurants, its basic ingredients come from abroad.
“I’m going to hit us slowly”
“The prices in China will hit us slowly. We are already struck by coconut milk. The chief’s choice. We originally obtain it for $ 29, but it was raised to $ 35 per case,” he explained.
President Trump’s prices on Chinese products at 125% put many local companies in a difficult situation – spend more or risk quality by moving to a cheaper supplier.
“Our Vermicelli came from a province in China,” said Nguyen. “These are the best noodles that work with my kitchen.”
“I don’t want to increase consumer prices,” he said.
Chinese prices will increase prices for devices
Other industries do not have the opportunity to rotate.
“The hinges, the engines, the compressors leave this region,” said Steve Steinkopf, CEO of Yale Appliance.
These are all the necessary parts to build the devices you see in their exhibition hall in Framingham.
“Many products come out of these regions – China, Vietnam. But many parts do it too. You cannot make a fridge without hinges that generally come from China. If the price of everything that increases, then generally prices on whole units will also increase,” said Steinkopf.
He thinks that potential price increases will not take place to consumers before the end of summer.
“If the prices occur as announced,” said Steinkopf, “I would say September to January, certainly next year, you will see price increases again.”
Many companies are trying to prepare now, despite the volatility of the economy.
“This is the worst nightmare of a small business owner,” said the Nguyen chef.
