Business Owners in Chicago Still Concerned About Increasing Costs Despite President Trump Delaying Some Tariffs

CHICAGO (WLS) — President Donald Trump suddenly declared on Wednesday a 90-day halt on specific tariffs; however, a 10% base tariff remains in place for most countries universally.

Following the announcement, the Dow surged by over 2,000 points in a matter of minutes. Nevertheless, it remains lower compared to the levels prior to President Trump’s introduction of global tariffs one week earlier.

The tariff whiplash also impacting business owners in the Chicago area.

Some individuals expressed their feelings of being in a state of uncertainty, stating their beliefs that the situation has left them in a bind. ABC7 revisited a specialty grocery store owner previously interviewed after the initial tariff news. The store owner mentioned that although there is a sense of relief, expenses are expected to rise.

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Experts are saying it’s too soon to know what the impact will be to consumers’ pockets.

The owner of Gene’s Sausage Shop says as we wait to see how world leaders will resolve the trade war, the battle now is trying to keep the customers they already have.

“It’s a lot of uncertainty and I believe that’s where the problem lies,” Gene’s Sausage Shop co-owner Derek Luszcz said.

The majority of the products that line the aisle of Gene’s Sausage Shop bring a taste of the world to customers in Lincoln Square. Seven days ago, tariffs threatened their ability to keep international delicacies on the shelves.

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“It’s really hard for a small business like us, employing 25 people on average, to be able to suck those costs up,” Luszcz said.

While Luszcz said Wednesday’s tariff turnaround was welcome news, he said it is not going to turn things around, in terms of profit, just yet.

“Because people are going to now wait 90 days before they make any kind of move, whether it be up or down, and that is the problem,” Luszcz said.

Luszcz said, for the most part, his shop’s prices have held firm since amidst the tariff turmoil, but not so much for consumer spending.

“People’s discretionary spending has gone down tremendously, and we see this,” Luszcz said.

READ MORE | Illinois leaders, economists, businesses criticize President Trump’s sweeping new tariffs

Now Luszcz is hoping the reverse course steers world leaders in a new direction.

“To have another impact of tariffs hit us when we already see inflated prices from COVID, from transportation cost going up… this would be another roadblock,” Luszcz said.

Luszcz said all he can do is wait and see and hope in the 90 days that consumer confidence in the trade rivalry comes with a resolution.