'We're Going To Take A Loss': Local Businesses Taking The Impact Of European Tariffs
PITTSBURGH (KDKA) - The Parmigiano-Reggiano cheese comes straight from Parma, Italy and the olives at Pennsylvania Macaroni are grown in Spain.
These are two of many imported European agriculture products that are subject to a 25 percent tariff increase.
Pennsylvania Macaroni in the Strip is one of many businesses caught in the middle of a trade war between the U.S. and the European Union.
"Our cost went up on a number of English and Italian items. It's due to a dispute between Airbus and Boeing," Adam Ehrlichman, a cheese buyer, says.
"It has nothing to do with us and it's just totally going to hurt small, independent cheesemakers and small, independent grocers."
It all stems from a ruling by the world trade organization that the European Union was illegally subsidizing Airbus.
The ruling allowed the U.S. to impose a more than $7 billion tariff on E.U. goods.
The tariff usually results in businesses raising prices.
But for now, Pennsylvania Macaroni won't be passing those higher costs on to its customers.
"We're going to take a loss. We're going to hold our prices for the rest of the year and hope for the best."
Meanwhile, French and Spanish wines are also on the 25 percent tariff list along with single malt scotches.
Dreadnought Wines on Liberty Avenue sells a high volume of French wine to restaurants and wines and spirits stores.
Owner Debbie Mortillaro says everyone is involved in trying to keep prices down.
"They're talking to the wineries in France and saying, 'hey, you're going to have to take a cut, the importer takes a little bit of a cut, we take a little bit of cut, everybody doesn't take their full, full margin to cover this,'" she says.