Little Richard’s Toy Store and Mountain Chalet are both longtime Colorado Springs staples.
However, the Trump administration’s trade war with China could potentially hurt them.
The administration announced it will raise tariffs on $200 billion worth of imports coming from China.
“What was hurting a little bit is now hurting a lot more,” said Dr. Tatiana Bailey, Director of UCCS Economic Forum. “Somewhere along the supply chain almost an incredibly high percentage of businesses are impacted one way or another.”
Bailey said toys made in China will be taking a hit.
About 30 percent of Little Richard’s inventory comes from China. One distributor already warned the store about possible price increases because of the tariffs.
“We have been buying toys not from China ever since we knew these tariffs were coming into play,” Little Richard’s owner Richard Skorman said. “We are hoping not to raise our prices. That’s not our goal.”
According to Bailey, other businesses will be forced to raise their prices. That means consumers will see an increase of 5% to 10% on goods.
“It’s difficult, again, because it’s a complicated supply chain,” Bailey said. “Economists, as much as we don’t like tariffs, we recognize it decreases demand and eventually hurts the economy and jobs.”
The administration also began the process of raising prices on all remaining Chinese imports valued at about $300 billion.
The current imposed tariffs are also impacting Mountain Chalet’s products, including backpacks, camp chairs, and more.
“It’ll affect consumers, retailers, manufacturers, brands,” Mountain Chalet owner Elaine Smith said. “Price increases aren’t something we root for, but will have to deal with them as they come.”
Mountain Chalet has been in contact with The Outdoor Industry Association, who recently sent a letter to the President saying the new round of tariffs “will deliver a devastation blow to the $887 billion outdoor recreation economy and the 7.6 million American jobs it supports.”