While the holidays are still a ways away, some people are already wondering whether tariffs will impact prices during the busy shopping season.
Economist and Main Street Journal publisher Michael Shuman says tariffs increase prices that are passed on to consumers, such as the cost of imported goods.
Noi Miner owns Noi’s 2nd Street Café in Los Osos. She said she recently had to raise prices, noting specifically the cost of imported coconut milk.
“The beginning of the year, I paid $40 to $50 a case, but now it’s $74,” said Miner.
Shuman says prices are increasing for more than just imported goods.
“When you raise prices with imports, other domestic producers tend to raise prices as well to match them,” said Shuman.
According to a White House fact sheet published in April, President Donald Trump "believes that tariffs are necessary to ensure fair trade, protect American workers, and reduce the trade deficit-this is an emergency.”
For Arroyo Grande resident Steve Hall, those tariffs seem to be having an immediate impact.
“I feel like every time I look at something, it seems like the prices are higher than what they were just recently,” said Hall.
The Arroyo Grande resident says prices at the grocery store are making him think twice.
“If it seems like it’s super high-priced for some kind of beef cut, [...] maybe I won’t eat that. Maybe I'll get something that’s cheaper to eat,” Hall said.
Unlike goods, Shuman says services, like music lessons, tend to be immune to price increases. For the upcoming holiday season, he recommends considering giving them as gifts.
Hall says if he notices increasing prices for gifts, he would consider shopping early.
“If I thought they were going up significantly, we might be buying some stuff now in order to have it ready for the holidays,” Hall said.
But for Miner, even if prices keep rising, she won’t be stocking up.
“The thing is, when I order food ahead, it doesn't mean you don’t have to pay them, you still pay them,” Miner said.
