DETROIT (WXYZ) — Detroit small business owners are raising concerns about the impact of fluctuating tariffs on their operations, with many saying the additional costs are threatening their survival.

“As small businesses, we are even more vulnerable. We have a disproportionate advantage when it comes to these tariffs,” said Rachel Lutz, owner of The Peacock Room clothing store in Detroit.

Watch the video report below:

Detroit small business owners struggle with impact of fluctuating tariffs

Lutz recently had to end a business relationship with a vendor from England due to rising tariff costs.

“I tried to place a $2,000 fall handbag order… my $2,000 order would have had over $1,500 of import fees and taxes. I had to cancel the order and now I’m going to have to figure out how to replace this supplier,” Lutz said.

Hear more from Lutz in the video player below:

Extended interview: Rachel Lutz talks about the tariff impact on business

On Wednesday, several small business owners gathered at Lutz’s store to discuss their concerns about the impact of tariffs on their operations.

“I was absorbing that cost at first, but now I’m actually increasing prices and slowly moving that cost to my customers,” said Craig Batory, owner of Craig’s Coffee in Detroit.

Batory, who imports coffee beans from Brazil, faces particular challenges due to the nature of his product.

“Coffee can’t be grown commercially in the United States so I’ve been making more transitions to, buy more domestic products for my brand, but the one thing we spend the most money on, at least 60%, is raw coffee,” Batory said.

Jeff Rightmer, an associate professor of teaching of global supply chain management at Wayne State University, explained that businesses like coffee shops are particularly vulnerable.

“You think about some of those places, they’re operating on very thin margins, 1% in some cases. An increase in cost can really affects their bottom line,” Rightmer said.

Hear more from the small business owners speaking at The Peacock Room in the video player below:

Small business owners speak on impact of tariffs

The concerns extend beyond individual businesses, to advocacy organizations representing small business interests.

“We are screaming that we need change,” said Charity Dean, owner of Rosa Coffee and president of the Michigan Black Business Alliance.

Dean has a message for lawmakers at both the state and federal levels.

“What I’m asking is for every elected official to hear the voice of the small businesses that employ the communities that you serve,” Dean said.

Customers are also aware of the challenges facing local businesses. Josette Hejka, a customer at Rosa Coffee, expressed her commitment to supporting local establishments.

“I make my coffee at home if I can’t afford it and I’m frugal when I can but if I go get coffee, I want to support local, especially where I grew up,” Hejka said.

Lutz emphasized the importance of continued community support during this challenging period.

“Consumers have to ask themselves how appreciated and needed in the communities… because if we don’t survive, they’re going to have their neighbors lose jobs, less tax revenue,” Lutz said.

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