Some small businesses in North Carolina preparing to increase price with China tariffs

RALEIGH, N.C. (WTVD) -- Economists are sounding the alarm on the China tariffs, and warn says domestic price hikes will be swift and large.

NC State Professor Jeffrey Dorfman estimates the tariffs cost the average household up to $16 a month.

Small businesses are also bracing for increases.

Some locally owned Chinese American small businesses, whether that be grocery stores or restaurants that import a number of Chinese goods, are preparing to pass down the cost of the newly imposed tariff.

"We have to increase the price on menu," said one restaurant employee, who wished to stay anonymous.

A sweeping new U.S. tariff on products made in China is expected to increase prices on several items.

NC State Professor Jeffrey Dorfman says the 10 percent tax makes the supply chain more unstable, but not to pandemic levels.

"I think the real question right now is nobody knows how much of this is really going to happen and how much is negotiation," he said.

Dorfman says a big concern is if China retaliates against North Carolina exports and one of the most important crops being tobacco.

Our state has hundreds of tobacco farms.

North Carolina is one of the country's top two producers and the Chinese market has a strong appetite for the crop.

"China is such a big consumer of some of those things, particularly, tobacco, that there really isn't another customer you can replace them with," said Dorfman.

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So far, China's announced retaliation list doesn't specifically target any North Carolina products.

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