United States: in Washington, restaurateurs see their margins nibbled by customs duties
Opinion (with AFP)
Washington – Brazilian coffee, French champagne and Chinese teas: if drinks are a source of profit for American restaurants, the increase in import costs increases prices, three months after the salvo of customs duties announced by Donald Trump. A few steps from the White House, Clyde’s, a restoration group founded in the 1960s which has more than a dozen establishments in the capital and its surroundings were forced to increase the prices of its menus. “We have to pass up with part of the costs on our customers,” deplores John Filkins, drinking manager, although the group seeks to limit their impact. “It can be 50 cents to 1 dollar on certain wines on the glass, or on spirits, or on certain products from our menu,” he explains to AFP. “We have seen significant price increases for coffee and teas, and we are starting to see increases for certain foodstuffs,” he adds. Companies have seen their supply chains disturbed and have suffered higher costs since Donald Trump has decided to impose all-round customs duties on the United States business partners. The American president had caused a shock wave in early April by announcing “reciprocal” customs duties against the rest of the world: a minimum surcharge of 10%, which can go up to 50% for countries considered to be bad students, because they export more to the United States than they are important to American products. “Little money and weak margins” of managers like Mr. Filkins wait patiently next Wednesday, when the highest customs duties are expected to come into force. These surcharges are defined according to each partner, the European Union being imposed 20% of customs duties and Japan, 24% … unless they conclude agreements allowing them to avoid these customs duties. For Mr. Filkins, the maintenance of these customs tariffs would lead to a decrease in the number of small distributors and independent restaurants. “We hope that the final surcharge will not reach the levels we hear today,” he added. “The restoration is, ultimately, a sector where we have little money in stock and weak margins”, typically “to a figure”, he deplores. Reducing the margin of 10% to 15% for a glass of wine could therefore prove to be a real blow for restaurateurs. Increased from 20% to 30% Clyde’s is particularly in Brazil and Indonesia for his coffee in grains, China for its teas. In the past six months, Mr. Filkins has noted a 20% to 30% of the cost of these products. From Wednesday, struck by customs duties of 32% and 26% for India. Repercussions of all these costs on consumers who “are not ready to spend more in the current climate”, according to the leader in the world has shot the game after the COVID-19 pandemic, thanks to a solid job market that has allowed consumers to continue to spend. Largely on inflation this summer, households could become more selective in their purchases. Beiyi Seow © Agency France-Presse
