Small business owners, including Melkon Khosrovian of Greenbar Distillery in Los Angeles, are adopting a cautious stance following the Supreme Court’s recent decision to reject former President Donald Trump’s primary tariffs. Many owners remain skeptical about potential reimbursement and future tariff relief after a challenging year that saw substantial levies negatively impacting profitability.
Khosrovian expressed doubts regarding the possibility of receiving any rebate checks, stating, “I’m dubious.” The tariffs had significantly increased costs for essential items such as glass bottles from China, exotic spices from India, and coffee from Brazil, which are vital for producing the distillery’s products, including canned espresso martinis. Despite these challenges, he chose not to raise prices, acknowledging that the tariffs consumed about 20% of his profit margin.
To manage costs over time, Khosrovian invested $400,000 in equipment designed to automate labor-intensive processes like bottling. This decision could potentially lead to workforce reductions, as he plans to let go of three employees from his team of 15. He expressed concern over the unintended consequences of the tariffs, which could result in job losses in the U.S. while he relies on imported technology.
The Supreme Court’s ruling did not clarify whether the government will repay the collected tariff revenues, leaving uncertainty in its wake. Additionally, Trump has indicated a commitment to maintaining aggressive tariff policies, further complicating the outlook for small businesses like Khosrovian’s.
Why this story matters
Key takeaway
Opposing viewpoint
