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China tariffs will lead to higher prices in Massachusetts, "a small business owner's worst nightmare"

Some Massachusetts businesses are caught in the middle of the fight between the US and China over tariffs.

"They gave us a warning," Peter Nguyen, the owner and chef at Le Madeline in Quincy, told WBZ-TV. "It's going to go up!" 

He's bracing for the price of dry goods, like noodles, from China to increase in coming months. Nguyen specializes in Vietnamese cooking, but like many restaurants, his core ingredients come from abroad. 

"Going to hit us slowly"

"The tariffs in China are going to hit us slowly. We're already getting hit with coconut milk. Chef's Choice. We're originally getting it for $29, but it just got raised to $35 a case," he explained. 

President Trump's tariffs on Chinese goods at 125% is putting many local businesses in a tough spot - spend more or risk the quality by switching to a cheaper supplier. 

"Our vermicelli came from a province in China," Nguyen said. "Those are the best noodles that work with my kitchen."

"I don't want to raise prices on consumers," he said. 

Chinese tariffs will raise prices of appliances

Other industries don't have the option to pivot. 

"Hinges, motors, compressors come out of that region," Yale Appliance CEO Steve Steinkopf said. 

They are all the pieces needed to build the appliances you see at their showroom in Framingham. 

"A lot of products come out of those regions - China, Vietnam. But a lot of parts do too. You can't make a refrigerator without hinges that come from China typically. If the price of all that go up, then typically the prices on whole units will go up as well," Steinkopf explained. 

He believes the potential price increases won't trickle down to consumers until late summer. 

"If the tariffs happen as advertised," Steinkopf explained, "I would say September to January, definitely next year you'll see some price increases again."

Many businesses are trying to prepare now, despite how volatile the economy has been. 

"This is a small business owner's worst nightmare," Chef Nguyen said. 

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