Cutting Costs, Raising Prices: Trump’s Tariffs Hit the East Village

 President Donald Trump announced new tariffs yesterday, calling it “Liberation Day.” They range from ten  to 50%, with a 20% tax on products from the European Union and 34 on those from China. Our reporter Maud Yaïche checked in with  small businesses to see how they plan to respond to the change.

At the Whistle Salon in the East Village, the owner, Will Johnson is stylish. He has short  hair died blond and slicked down. He says tariffs won’t affect hair cuts. But, he will definitely feel the impact on the other part of his business,

And I don't know what that's going to look like, Will Johnson.

Johnson’s salon does a lot of hair color and shampoo sales and he’s expecting a 20% increase on those products - starting today. WILL: So as of right now, our distributor is in New Hampshire. And so they have stockpiled a good bit to try to guarantee us a price for a certain amount of time. I don't know how long that will last.  But unlike in spacious New Hampshire, Johnson’s New York salon doesn’t have room to stockpile. It’s small and space is tight.

I then also went on to look at other American brands, possibly, of hair color. Aveda, Paul Mitchell, not things I'm super thrilled about. But also, ingredients in those are made specifically in Europe, and they will be imported still, Will Johnson.

Johnson says when it comes to raising prices on hair color there’s no way around it. His profit margin is not super high.

So, um, so yeah, it's that fine line of like, we still want to offer this service, we have to offer the service. It's the, you know, something we do a ton of. I think I have five today, but um, if I'm making 12 off of them, um, it doesn't really make it worth it. Where I could do a haircut in the same amount of time, Will Johnson. 

But two blocks away the Red Bear coffee shop isn’t raising its prices. Yasmin San, is a barista there. She says her coffee shop is trying to stay competitive and affordable despite Trump’s tariffs.

People usually they ask prices first since prices went up. So we are trying to keep the prices - coffee prices same. … I heard from the customers - everything is so expensive, Yasmin San.

Back at the Whistle Salon, Will Johnson is planning a meeting with his staff next week. Unless he figures out how to give his costs a hair cut, They’ll be talking about raising prices.

Maud Yaïche, Columbia Radio News.