PITTSBURGH — The uncertainty surrounding global tariffs is already impacting businesses in the Pittsburgh region.
“Aluminum—such as aluminum foil, sheet trays, cookware, and to-go containers—is expected to increase by 28 to 30%,” explained Don Doherty, the manager of Gaucho restaurant.
On Wednesday, President Donald Trump announced a three-month pause on all “reciprocal tariffs,” except for those on China, where duties were raised to 125% effective immediately. The administration also stated that a 10% tariff would remain in effect for all other countries. This policy reversal came just days after many tariffs went into effect, leaving local businesses anxious and prices unstable.
>>> President Trump pauses tariffs on most nations for 90 days, raises taxes on Chinese imports
“We tried to buy as much as we could before the tariffs were implemented, but we simply don’t have enough storage,” Doherty said.
Gaucho, an Argentine steakhouse in the heart of Pittsburgh’s cultural district, is already feeling the effects. Since their food is authentic, their wine, produce, and other ingredients are primarily imported.
“We try to absorb as much of the cost as possible, but ultimately, it leads to raising prices on the menu, which falls back on our customers,” Doherty explained.
The coffee industry is also expected to be significantly affected by the tariffs. Earlier this year, economists predicted that coffee prices would rise, with potential increases ranging from 50 to 75 cents per cup due to factors like climate change, supply chain issues and global demand. Now, widespread tariffs will further elevate the already increasing prices of coffee beans.
“Almost all of our beans come from Central America,” said Seth Murphy, the owner of Wunderbar Coffee Shop in Bellevue. Due to the climate and costs related to coffee production, beans are not grown in the U.S. This makes America the second-largest importer of coffee in the world, with 80% coming from Latin America.
“I’m a little nervous; I’d be lying if I said this isn’t a nerve-racking time for our industry,” Murphy shared. While acknowledging the uncertainty, he is trying to remain optimistic. For now, he plans to absorb the additional costs but is uncertain about what the future holds.
“It fluctuates so quickly; we are just trying to react in real-time,” he said.
Meanwhile, Doherty mentioned that the restaurant may consider cutting back on business hours to save costs.
“It’s heartbreaking; we put so much time and energy into making this work. We struggled through COVID-19, and we made it to the other side, and now this. We will do what we can to get through it.”
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