Philadelphia-area businesses brace for impact as Trump prepares new slate of tariffs
President Trump has dubbed April 2 "Liberation Day" — it's the day he is slated to roll out his plan for a broad swath of tariffs on most, if not all, of America's trading partners.
It's something local businesses across a wide spectrum are watching closely.
"Oh, most definitely," said Arnie Madrigale, owner of Arnie's Gourmet in Cherry Hill.
Mr. Trump, an ardent supporter of tariffs, has wielded the levies often in the start of his second term. He has gone through a series of back-and-forth, on-again, off-again tariffs on the U.S.'s largest trading partners Canada and Mexico. He also raised tariffs on China.
But this week's announcement is set to be much broader, with the president long teasing what he called reciprocal tariffs on nations across the globe. Mr. Trump and his advisors appeared to still be putting the finishing details on the plan, as he prepares for a Rose Garden announcement Wednesday afternoon.
"I think it's going to be something that's going to bring a lot of wealth back to our country, tremendous wealth back to our country," Mr. Trump said from the Oval Office on Monday.
Mr. Trump has contended that other nations have taken advantage of the U.S. on trade, leading to the country's large trade deficit. He also believes the tariffs will spur people to buy American-made products, lure industries to the U.S. and revitalize American manufacturing.
"We'll be cautiously optimistic about that. There's just no timetable on when or if that's going to happen. So we'll see," said Mike Madrigale at Arnie's.
Arnie's has been in Cherry Hill for 40 years, bringing authentic Italian products to New Jersey residents. That, of course, means importing a lot of products from Italy. And it's those products that could face these new tariffs.
"Our pastas, our olive oils, our tomatoes, all kinds of imported cheeses," Arnie Madrigale said. "We don't really source any imported meats. But we do have some national distributors who say just because you don't, we do, you might feel the effects across the board."
But it's not just the meat behind the counter or rows of cheese in the fridge. Madrigale says they use all sorts of different containers for sandwiches, to-go items and catering, all of which are made overseas.
"They're not really 100% sure what's going to happen with that pricing, but something to keep an eye on," Mark Madrigale said.
The Madrigales said they'll do their best to avoid raising prices in the store. But how long they could hold off is anyone's guess.
"We'll eat a little bit, but there's going to come a time where we can't, so it has to be passed on at that point," Arnie Madrigale said.
Car parts are another area ripe for tariffs. Mr. Trump has already announced a 25% tariff on foreign-made cars and parts. At Linette's Gulf station on Spring Garden Street in Philadelphia, service manager Anthony Delareto says they're keeping tabs on the tariffs, which could lead to higher prices and even some availability issues.
He says, unfortunately, price hikes would have to be passed on to customers.
"We always try to price out our parts and labor competitively to be able to keep our shop in good working order and keep our mechanics paid," Delareto said. "But it's definitely going to get passed on."
Leaders in Canada and the European Union have already said they are planning retaliatory tariffs to whatever the president announces this week. However, they were hoping to negotiate with the U.S., something Mr. Trump left the door open for when speaking with reporters on Air Force One over the weekend.
Mr. Trump is set to make his tariff announcement Wednesday at 4 p.m.
