Raleigh small businesses scramble to plan for tariffs, possible dips in consumer spending

RALEIGH, N.C. (WTVD) -- There is a lot of concern about consumer spending right now, and some small business owners are worried that people will start pulling back as tariffs are inflicted on Main Street.

"I think it's crazy. It sounds unfair," said Patrick Brennen, store manager of Raleigh retail store Social Status.

He said it's difficult placing orders for the upcoming fall season while tariff amounts are seesawing.

The store is stocked with sneakers, many of which are made in China and now subject to a triple-digit added tax.

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Brennen hopes the number comes down.

"We're just certainly patiently waiting, just like everybody else," he said.

Andrew Ullom owns Union Special, a bakery in Raleigh, and is waiting on a new piece of equipment to help him expand.

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ABC11 was invited into his production facility. It was built just three years ago, and already Ullom has outgrown the space.

Demand is soaring, he said, as he's selling more breads and pastries wholesale.

At the end of this month, Ullom will be supplying bread and pastries to four eateries inside Raleigh-Durham International Airport. He also sells to restaurants in Raleigh, Durham and Chapel Hill.

The bakery went from making 2,000 croissants a week to 5,000 since last spring.

Ullom ordered a $72,000 piece of machinery from overseas to improve labor operations, and that equipment is now subject to an increased tariff once it arrives on U.S. soil.

"I'm getting gray hair every day," said Ullom. "One hurdle after another right now. This is certainly one that we were not expecting."

He said he goes to lengths to buy as many American products as possible.

"All the flour that we use is from North Carolina; as much produce as we can use is from North Carolina. The butter that we use is made domestically," he said.

Ullom is begrudgingly preparing to pony up whatever's necessary to get his investment to Raleigh and keep the business growing.

"It is infuriating. I really, I cracked. I had a really rough two hours after the news came out and after I had a realization of having to spend more on a piece of equipment that we had negotiated a fair price on," said Ullom.