She fears what Donald Trump’s latest round of tariffs will do to her small business.
“There’s no need for this tariff,” she said.
We hear a lot about stock market woes and fears of Americans worried about the higher prices tariffs will bring (it’s basic economics, folks. Increase costs and prices rise).
But we don’t hear much about people like Palomar, who can’t afford to pay the increased taxes and therefore can’t import the goods she sells to make a living. (Disclosure: Nola is a friend.)
Here’s an example of how tariffs work on one of the products she imports.
She imports the Ventresca, or tuna belly, of the Bonito del Norte tuna. This luxury item is known for its well-marbled texture and buttery taste, and it’s fished from the Bay of Biscay north of Spain.
Palomar already pays a 35% tariff on every pallet of tuna she orders. One pallet contains 4,625 cans.
She pays nearly 26,000 euros ($28,532 USD at today’s prices) per pallet, and the 35% tariff adds another 9,000 euros. ($9,845 UD).
But Trump has threatened an additional 20% tariff, which would increase her tax bill to more than 14,000 euros ($15,315 USD).
It’s not like she can put all of this on a credit card and pay over time. She has to pay for everything upfront, via wire transfer, and U.S. customs won’t release her products until she pays the tax bill and other associated costs. Under this example, she needs at least $44K USD cash-on-hand to complete this one purchase.
She sells a 4-ounce can of tuna for $22, and she’s confident her clients would pay an additional 20%, to about $26.50 a can, to cover the higher tariff.
The problem: She can’t afford to pay the higher costs the proposed new taxes would bring on.
“The hardest thing for me to understand is Trump keeps saying, ‘Oh, China’s going to pay the tariff. It’s not China. It’s not the EU. It’s your importer who pays the tariff, not the country that the product is coming from. They’re not going to pay that tariff. Ever.”
Team Trump likes to say that its policies will bring manufacturing back to America and usher in the economy’s golden age. That ignores that Americans want choice. If they want to buy Ventresca tuna (or a Toyota, the best Beluga caviar, or San Marzano tomatoes) consumers expect the items to be available.
And no, buying Chicken of the Sea tuna, American farm-raised caviar, and crushed tomatoes aren’t the same. They’re different products, as different as peanut butter is from jelly. And no, simply moving a manufacturing plant to America doesn’t magically mean its products will be American-made since most of the components are manufactured — wait for it — overseas.
That’s why Wall Street and some Republicans are finally starting to push back on a policy that’s as haphazard as Elon Musk’s DOGE cuts. Tariffs can be an effective tool, provided the program thoughtfully examines risks and rewards. But this chaotic policy threatens the United States’ and the global economy. Already, analysts predict we’re headed toward slower GDP growth, higher unemployment, and increased interest rates, all because of tariffs.
Palomar has been through this before, She expressed similar misgivings in 2020 in a Dayton Daily News story. This time, though, feels different.
“I think these people are completely out of touch,” Palomar said. “And I’m angry.”
Ray Marcano’s column appears on these pages each Sunday.