President Trump’s tariff plans keep Valley business owners scrambling

PHOENIX – President Donald Trump’s promise to roll out another round of tariffs this week has Valley business owners scrambling.

“The uncertainty is definitely not easy to plan around,” Gabe Hagen, owner of Brick Road Coffee in Tempe, told KTAR News 92.3 FM’s Arizona’s Morning News on Tuesday. “So, not knowing what direction things are going is definitely impacting small businesses.”

Trump said Wednesday will be “Liberation Day” because the tariffs he plans to unveil will free the U.S. from a reliance on foreign goods. The president has talked about imposing tariffs on goods from the European Union, South Korea, Brazil and India, among other countries, without providing details prior to the rollout.

How is Tempe coffee shop owner dealing with tariffs?

Local business owners like Hagen have been trying to get ahead of the expected rise in supply costs caused by new tariffs.

For example, he pre-purchased as many imported to-go cups as he could in December because they have been less expensive than the ones produced domestically.

“If I were to switch over, I would have to raise prices,” he said.

However, tying up capital in inventory can be a risky move for a small business.

It “really makes it kind of hard to now navigate any other uncertainties or any other things that kind of come out of nowhere,” Hagen said.

Despite the planning, Hagen said he’ll probably have to raise prices to cover the cost of expected new tariffs on coffee and other imported supplies.

“I’ve kind of done the math, and I think the only approach that I can take to keep my business somewhat sustainable is to just do a pass through” of the tariff cost, he said.

Hagen said he is aware that raising prices by an expected 10% to 20% could cost him customers. He’s also concerned the impact of tariffs on necessities such as groceries could also make consumers less likely to treat themselves to a cup coffee, which he called “one of the last affordable luxuries.”

Brick Road Coffee expecting slow start for new location

On top of the tariff uncertainty, Hagen has been juggling plans to open a second Brick Road Coffee location. The original shop is on Rural Road just south of US 60.

Work on the new location started in mid-2024, but hiring plans have changed in light of recent developments.

“We are reducing the number that we will be hiring to staff that second location just because we fully anticipate a much slower start for that location than we originally expected,” he said.

Hagen is hoping that the details of how the new tariffs will impact consumer trends will become clear soon.

“I think small businesses across the country are just … hoping that we can get some more certainty from what’s going to go on so that way we can really kind of plan and make decisions that will help stabilize the main streets of America,” he said.

The Associated Press contributed to this report.

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