Chicago businesses uncertain as tariffs, trade war loom on the horizon

CHICAGO – Local business owners that sell imported goods are bracing for the impact of President Trump’s tariffs, adjusting their orders as they try to anticipate how the higher costs will impact supply and demand.

For the last 50 years, Alcala’s Western Wear has been in business in West Town, importing most of their goods from Mexico and Canada.

Those products are now subject to 25% tariffs.

“Something like this goes for now about $500, and with the increase you can tax on another $50, $100,” Mani Alcala, owner of Alcala’s Western Wear, said. “There are certain exotics that come from Mexico, like gator boots, and all that already fetch a pretty penny for what they go for and just wit importing it, you’re looking at about another $100.”

Some boots, depending on material, are in the two-three-thousand-dollar range and could go up in price even more as business owners, who rely on manufacturers outside the U.S., brace themselves for an international trade war.

“Until we know where this is going, we are going to be a little more conservative with our ordering and where we’re going to be spending as well,” Alcala said.

Other stores, meanwhile, have preemptively stocked up.

“Our inventory is almost double more than double what it is usually this time of year in preparation for tariffs and prices going up,” head shopkeeper of Timeless Toys, Scott Friedland, said.

At Timeless Toys in Lincoln Square, they are also worried about the impact.

“Lego is made in Denmark so they’re not made in China, but we’re still feeling the tariff on something like that, a European brand manufacturing in Europe. People have talked about how expensive Lego is and it’s about to go up even more,” Friedland said.

The European Union was also hit with a 20% tariff on goods like Lego and Timeless Toys is hoping they can offload the product during a time of year that’s not as busy for toy buying.

“There’s a real fear right now that you could make a purchase that’s called inventory, and then the very day after you make your purchase, what if the tariffs get cut down? That means you overpaid,” said Craig Bolanos, founder and wealth adviser at Vestgen.

Businesses are now left navigating uncharted waters, doing what they can to stay afloat.

“We’ve been talking to our manufacturers about getting some more favorable terms for larger orders. Our inventory this time of year is double what it usually is. We’ve put a lot more money up front, hoping people continue to shop throughout the year,” Friedland said.

Store owners also said even if they sell U.S. made products, prices could go up as well with increased shipping costs or if some parts they use are made outside the U.S.