23-04-2025
- Business
- San Francisco Chronicle
San Francisco businesses hit by tariffs join Pelosi in calling for Trump to halt trade war
In a warehouse at San Francisco's wholesale produce market Wednesday morning, a local coffee shop owner, a K-pop merchandiser, fresh produce sellers and representatives from the San Francisco Flower Market implored President Donald Trump to reverse his tariff policies, citing the harm they have had on the city's businesses.
'Don't tax our coffee,' said Lauren Crabbe, the co-owner of Andytown Coffee Roasters. 'Don't put this burden on small businesses and working people.'
Trump's proposed tariffs on about 90 countries, which are currently on a 90-day pause, would significantly raise the price of coffee because it cannot be grown in the continental United States, Crabbe said. She orders coffee beans from Guatemala, Brazil, Colombia, Ethiopia, Rwanda, the Philippines and Indonesia.
Crabbe and other business owners joined Speaker Emerita Nancy Pelosi on Wednesday in criticizing Trump's tariff policies.
'The Trump administration's ineptitude is tanking our economy with self-inflicted disaster that leaves hardworking Americans bearing the brunt of the pain,' said Pelosi, who organized the event as part of the House Democrats' national Cost of Living Week, which she said was meant to amplify the voices of small businesses affected by Trump's economic policies.
'Make no mistake, President Trump, senseless tariffs are driving prices higher, draining retirement savings and pushing us to the brink of a recession,' she said. 'Here in San Francisco, Trump's economic policies are hurting small business owners and their employees by instilling fear and uncertainty.'
'Hopefully they will listen to small business as they listen to big business,' she added, blasting what she said was the administration's chaotic and inconsistent approach to tariff policies.
Trump has been a longtime proponent of imposing tariffs on imports as a way to reduce the U.S. trade deficit and boost domestic manufacturing. Economists generally agree that the cost of tariffs is ultimately borne by American consumers, that tariffs are the wrong solution to address trade imbalances and that erecting trade barriers alone is unlikely to quickly spark a U.S. manufacturing renaissance.
Since taking office for his second term, Trump has enacted a flurry of tariffs, notably, a 10% baseline tax on global imports and a 145% tariff on Chinese imports, inciting retaliation by China of 125% tariffs on U.S. products. Trump said Tuesday that he will lower the Chinese tariffs 'substantially.' The Wall Street Journal reported Wednesday that administration officials are considering slashing them by more than half.
On April 2,a day Trump called 'Liberation Day,' he imposed sweeping tariffs on about 90 countries before backtracking days later, after stock markets took a historic plunge. He instituted a 90-day pause on the tariffs as his administration negotiates trade deals with 75 of the countries.
The uncertainty has roiled businesses, leading to some holding back from making investments and large purchases. The tariffs that are in place have also already resulted in price increases of everyday items and imported luxuries alike.
Wilmar Ramirez, the head of purchases for Arcadio's Produce at the SF Market, where the press conference took place, said he received a letter from a fruit producer Wednesday saying the price of bananas from Ecuador, Guatemala and Costa Rica are going up.
Starting tomorrow, bananas will cost him about $18.50 per 40-pound case, up from $17.25. Plantains and pineapples will also cost him about $1 to $2 more a carton. As wholesalers raise prices accordingly, the cost will ultimately be paid by the customer, he said. Already, sales have plummeted about 15 to 20% from March, he said.
'Just based on fear,' he said. 'People don't want to spend their money. People don't want to go out to eat, because the economy might crash.'
Kevin Teng, co-owner of a K-pop merchandise store called SarangHello on Taraval Street in San Francisco, said he is very afraid of the threat of tariffs as all his products are imported. About 95% come from South Korea and 5% from China. He estimated that if the threatened 25% tariff on South Korea takes effect, it could raise prices by about $5 per item.
'We understand we are not a necessity business,' he said, adding that he opened the store in 2020 with the goal of creating a positive, safe space for the younger generation to express their love for K-pop music. 'It's difficult for us as business owners, as a positive force, to continue to be positive because we ourselves are feeling that fear.'
Already, he's stopped ordering the photocard binders he used to import from China. He's also seen an approximately $2 per item increase in shipping costs, which he said he believes is a tariff-related impact. He said he has had no choice but to raise prices because his profit margins are already small, being an import reseller.
Crabbe said her espresso machine supplier from Italy emailed Tuesday to say it is raising prices by 6% preemptively, in anticipation of tariffs. Her company is about to buy two espresso machines for new locations and is planning to bear the higher costs. She has not raised prices yet, acknowledging that coffee is already expensive.
In her speech Wednesday, Crabbe recalled how in 1773, Americans dumped 342 chests of tea into Boston Harbor as a protest against British taxation on tea.
