Coping with Tariffs

Editorial

Maroun Hannoush doesn’t seem fazed by what some are describing as ‘trade wars’ and a rapidly changing scene when it comes to tariffs imposed on products from around the world.

Indeed, while Hannoush, CEO of the family-owned chain of jewelry stores and manufacturing facilities, acknowledged the 39% tariff rate imposed on products from Switzerland, including a wide array of watches sold in his stores, and some uncertainly about will happen with the price tags on those and other items, he was generally upbeat when he talked with BusinessWest.

He spoke of manufacturing moving to other countries, and especially this one, and, more generally, about how his industry (and others) will respond to this latest challenge with creative efforts to continue thriving, while also minimizing the impact on their customers.

“It’s exciting to see — there’s great potential for new jobs and new opportunities,” he said of already announced plans to move some manufacturing to this country, and the promise of more. “The United States has a great deal of untapped resources when it comes to making products like jewelry here.”

While most others are not as openly optimistic and upbeat, the general tone we’re sensing is that, yes, the tariffs are just another challenge to be overcome, and they are confident that they can make the needed adjustments, whether it’s steering wine lovers toward domestic labels or finding ways to absorb or offset some of the price increases.

As we talked with several other local business owners about tariffs, most said the full impact of these measures are still matters for the future tense.

Whether it’s Swiss watches, German beers, French wines, Japanese cars, or even some construction materials, there is mostly plenty of stock in warehouses that arrived well before the tariff rates were set in stone — if they’ve actually been set in stone — for the next several months.

Meanwhile, other factors, from attractive incentives on the sale and lease of new cars to falling prices on some construction materials amid a mild slowdown, are keeping the full effects from tariffs from being felt.

The question is, for how long? Actually, that’s just one of the questions being asked — questions for which there are no real answers at this point.

But amid these questions, there is a certain amount of confidence that many of these tariff issues can be minimized through the same creativity and diligence that has seen this business community endure through a Great Recession, a pandemic, an ongoing workforce crisis, and much more.

Maybe Hannoush is right. Perhaps these tariffs will generate more manufacturing in this country, equating to more jobs and more game-changing investments in communities across the country. Maybe the negotiations will continue, tariffs will fall, and important concessions will be gained as a result.

Maybe.

In the meantime, area businesses are responding as they always do — with imagination and determination.