Katy business owner taking extra measures amid Trump tariff uncertainty

KATY - With the constant changes in America's tariffs on other countries, one Katy business owner tells FOX 26 that he's taking extra measures to manage his prices.

Katy business managing amid Trump tariffs

Local perspective:

Tariffs are, essentially, a tax that someone will have to pay. Conventional wisdom suggests much of it will come from consumers who are willing to buy. 

For businesses like Katy's Good Times Running Company, where most of the inventory is imported, there is a near-daily conversation with suppliers about what will happen with prices. 

Owner Nick Waak says he has negotiated prices through the coming holidays, and his primary supplier has pledged not to raise prices until after. 

"They're going to, initially, take that loss and take, probably, a hit for the time being, in hopes they don't lose the market traction they do have," says Waak. 

Unless trade issues are resolved, prices will ultimately rise and customers will have to decide if they're willing to keep buying. 

Nick Waak describes a delicate dance with the companies that provide his inventory. 

"They know they can't double the prices and expect me to be able to continue to operate with them," he says, "So I have to hope they're willing to take that hit with me, to continue that partnership growth."

Tariff timeline

Timeline:

President Donald Trump named April 2 "Liberation Day" as he announced a 10% baseline tariff on imports from all countries. The tax percentage was higher for some countries at the time, including China.

The announcement and retaliations from countries like China led to a plunge in the U.S. stock market. On April 4, the S&P 500 plummeted 6%, the Dow Jones Industrial Average plunged 5.5% and the Nasdaq composite dropped 5.8%.

On April 9, President Trump announced a 90-day pause on tariffs on most imports, excluding the 10% baseline. U.S. stocks surged immediately after.

At the same time, China and the U.S. were trying to on-up one another on tariffs. President Trump first announced an overall rate of 104% on China amid the 90-day pause, then China responded with an 84% rate on U.S. imports, then the U.S. imposed a 125% total rate in retaliation.

As of Friday, the U.S. has imposed a 145% tariff on Chinese goods, and China has retaliated with a 145% tariff.