How Trump’s Tariffs Are Impacting NYC’s Iconic Sweet Shop: A Deep Dive into the Sweet Fallout

Economy Candy in New York is a hidden gem filled with sweets from around the globe. From German gummies to Spanish lollipops and Japanese chocolates, this shop offers over 2,000 candy options. Owner Mitchell Cohen is no stranger to the challenges of running a small business, especially with the recent tariffs affecting prices.

Cohen believes that rising costs will force him to hike prices, potentially pricing out some customers. “Every item could face price increases,” he says. This is a daunting thought for a store known for affordability. Over the last five years, candy and gum prices have shot up about 34%, according to recent Consumer Price Index data. Since 2005, prices have ballooned by 89%, influenced heavily by the economic climate and global supply chains.

As a business that imports roughly a third of its products, Economy Candy isn’t insulated from these changes. Many of its popular items, like imported Snickers bars, face significant tariffs. A Snickers from India incurs a 26% tax, while the European Union tax on certain goods reaches 20%. Even American-made candies aren’t safe, as they rely on globally sourced ingredients. For instance, Snickers bars come packed with chocolate from Guyana and sugar from Brazil—both affected by tariffs.

Economist Andreas Waldkirch from Colby College emphasizes the interconnectedness of today’s supply chains. “Almost every product relies on ingredients from elsewhere,” he points out. This reliance means that any disruption can significantly impact prices, making for a tough business environment.

Cohen has deep roots in Economy Candy, taking over a business originally started by his grandfather. Over the decades, the store has adapted through crises, from the Great Depression to 9/11 and more recently, the pandemic. Just when Cohen started to see his costs stabilize, tariffs have complicated things again.

In a historical context, tariff rates are climbing to levels not seen in over a century, reminiscent of the Great Depression era. This drastic increase is a cause for concern among small business owners. While President Trump claims these tariffs are beneficial for America, many like Cohen worry about the realities on the ground.

Despite these challenges, Cohen tries to maintain a sense of joy in his store. He wants it to remain a place of nostalgia and happiness for visitors. “You travel back to a time when nothing mattered,” he reflects, trying to focus on what makes Economy Candy special amidst the looming economic uncertainties.

For more insights into the candy economy and the impact of tariffs, you can check resources from the National Confectioners Association.

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New York City, International trade, Donald Trump, Mitchell Cohen, Retail and wholesale, Economic policy, Government policy, Germany, General news, Tariffs and global trade, AP Top News, New York City Wire, U.S. news, World news, Business, Matt Sedensky, Andreas Waldkirch, Spain, Lifestyle, U.S. News, World News