Tariffs threaten sweet profits for Economy Candy in NYC
- Economy Candy relies on imported products, with about a third of its inventory affected by tariffs.
- Owner Mitchell Cohen reports significant inflation-driven price hikes, with candy prices up 34% in five years.
- Cohen is uncertain about how to manage potential future price increases as tariffs take effect.
In the United States, particularly in New York City, Economy Candy, a renowned candy store, is feeling the impact of tariffs that have been instituted under President Donald Trump's administration. The store, which features over 2,000 types of sweets from around the globe, is struggling with rising prices on imported goods due to tariffs that have significantly increased costs for various items, including confectionery products. Owner Mitchell Cohen has witnessed a 34% increase in candy and gum prices over the last five years, largely driven by inflation and now further exacerbated by these tariffs. The current economic scenario for Cohen is particularly challenging as he attempts to manage price increases amidst fluctuating supplier costs. With about a third of Economy Candy's products being imported, the effects of these new tariffs are becoming increasingly pronounced. For instance, items such as the Pistachio Snickers from India are now subjected to a 26% tariff, while products like passion fruit mousse Snickers from Portugal face a 20% tariff due to European Union trade regulations. Cohen has been in the candy business for many years; as a child, he often worked behind the register. Now, faced with the realities of rising operational costs, he is struggling to maintain competitive pricing, all while relying on ingredients that are not available within the United States. His previous efforts to keep prices stable were recently undermined by the announcement of these tariffs, causing him to reconsider future price increases. This troubling situation calls into question the broader implications of the tariffs on small businesses that rely on global supply chains. While President Trump has described the tariffs as a necessary step for economic liberation, Cohen is doubtful that this government action will positively affect his business. The high rates of tariffs could not only drive prices up further, leading to a decrease in sales but may also harm the relationship with customers who are already sensitive to price changes brought about by inflation in the candy market.