BOSTON (WHDH) - From the booze you buy, to the car you drive, business owners are bracing for a hike in prices.
Arpit Patel has built his brand in Newton. He’s opened up both a liquor store and a restaurant in town. But new tariffs could hit his business hard.
Patel says much of the liquor and food he sells is imported from around the world. President Trump’s tariffs on imports could increase his costs.
“That changes the entire game, the demand will decrease or become non existent,” said Patel.
According to an analysis from the non-partisan tax foundation, the tariffs could cost average U.S. households $2,100 a year.
“If you can cut out something in your life when there’s worry about the economy, it’s probably going to be booze so we might see a natural decrease in spending in this sector as well,” said Patel. “If you go out for a few coronas and all of the sudden your bill is $34, I think that’s going to be a sticker shock.”
Consumers will also see increasing prices in the auto industry.
Charlie Karynais owns a car dealership in Boston. He says the auto industry will see some changes pretty quickly, but believes it will balance out over time.
“I think in the short term, we’re gonna see a little bit of an impact where the prices go up pretty fast, and then in the long-term, as things start to change and there’s a lot of inventory in the market, we’re gonna see a declining prices,” said Karynais.
He’s preparing for what comes next.
“People might not to be willing to buy another car right away they might not be willing to sell their car so there’s going to be a little bit of an issue there,” said Karynais.
Local business owners telling their customers to get ready to shell out a little extra money, at least for now.
Until prices decrease, owners say they still need to make their margins.
David Shapiro, a wealth management expert, says this level of concern is nothing new.
“I remember having the same exact conversations during Y2K, 2008, housing bubble. 9/11. Eventually, the U.S. economy will remain strong,” said Shapiro.
With prices set to increase on everything from cars to alcohol, but Shapiro says tariffs can be a successful tool.
“Hopefully that will spur growth internally, create jobs, and competitive prices in the U.S.”
Shapiro and other investment experts are urging people to not make any drastic decisions.
“Historically, there’s positives and there’s negatives to this scenario. The uncertainty will settle itself out.”
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