Ann Arbor business owners say tariffs are driving up their prices

As tariffs by the Trump administration remain in effect, business owners across the country are grappling with whether to raise prices or not.  

Zingerman's Delicatessen is a household name in Ann Arbor. 

Known for its generously sized sandwiches, customers also come to shop at the deli. Everywhere you look, products from other countries line the shelves.  

Though tariffs are nothing new, Zingerman's employees say rising tariffs have been challenging. 

"This has been a lot all at once, and it's hurting our long-term relationships," said Zingerman's managing partner Grace Singleton. "We have worked with people for 30 years, and all of a sudden their products are going up exponentially." 

As their holiday import is about to arrive, she said they are bracing for higher tariff fees.  

"We have about $250,000 worth of goods," said Singleton. "I was just looking at last year's invoices. We paid just under $9,000 in customs fees last year. This year, it's $43,000. 

"We can't just absorb that difference between $9,000 and $43,000 ourselves, so we have to raise the price of items, pretty much across the board." 

According to a report by Goldman Sachs, by the end of the year, American consumers will absorb 55% of tariff fees, while importing businesses will foot 22% of those costs.  

Blocks away from Zingerman's is Thistle & Bess. 

Owner Diana Marsh said her business is also feeling the effects of tariffs.  

"We got a smaller $500 order of a specialty item coming over, and we had an almost $200 tariff bill on that specific order," said Marsh. "So, it drastically changes the amount that we're charging because we're paying so much more to receive the items now." 

Marsh sells fine jewelry at the boutique. 

As the values of gold and silver hit record highs, she is facing further price hikes.  

"We've had conversations with people like, 'Well, then this is a perfect opportunity to just buy things from the United States,'" she said. "And it's not as simple as that; I wish it was. But we work with ceramicists whose clay only comes from England or Canada. 

"So, even if we are shopping exclusively from U.S. artists, their prices are also going up and up because of tariffs and also just the rising cost of goods."