Lincoln small businesses worry new tariffs will add to already high costs

LINCOLN, Neb. (KLKN) — New tariffs took effect Thursday on imported goods, raising worries among some Lincoln small business owners that their costs will climb.

According to the Small Business Administration, nearly 47% of small businesses in the U.S. rely on imported goods.

Some owners worry they’ll have to pass on the costs or cut corners.

Coffee bean prices have risen nearly 12% in the last year, according to the Bureau of Labor Statistics.

“We’ve been seeing an increase for the past few months,” said Ellie Simons, the general manager of Bethany’s Coffee Shop. “It’s really affecting how much we charge for our coffees. We haven’t raised prices, but we are thinking about adding a coffee fee.”

Now the store is preparing for prices to rise even higher.

“Seeing a 10% to 20% increase in our coffee beans, because we source from local roasters and small businesses themselves, that would also mean a 10% to 20% increase in our prices,” Simons said.

And it’s not just coffee shops.

Ashley Hopkins, a Lincoln mobile hairstylist, frequently shops at Mid-K Hair & Wigs to stock up on her supplies.

She said her specialty hair products — often imported — are harder to find and pricier than ever.

“Recently I was ordering hair extensions because I do hand-tied extensions, and there was a $75 tariff on one,” Hopkins said.

Hopkins said she’s even teaching her clients how to style their own hair.

“I can educate you on what products to use, what products to get, and then you can do it on your own,” she said. “So you’re actually saving money for the actual styling.”

Simons said big businesses like Starbucks can handle the costs of tariffs much more easily.

“Rather than us, who can’t take the hit,” she said. “Because our customer base won’t come back if we raise our prices.”