How Tariffs are Chipping Away Profits for an L.A. Cookie Shop Owner: A Sweet Business Struggles

L.A. Baker Battles Tariffs and Rising Costs

Lara Adekoya started her cookie business, Fleurs et Sel, in Los Angeles during the pandemic. She baked cookies at home and sold them to masked customers. Now, her bakery has become a local favorite, offering unique flavors like oatmeal chocolate chip walnut and matcha dark chocolate.

But running her business isn’t all sweetness. Adekoya now faces higher costs for ingredients. Thanks to tariffs from the previous administration, she pays $50 to $100 more for each bag of premium supplies imported from places like France and Japan. This adds up to an extra $3,000 to $4,000 every month.

Despite these rising costs, Adekoya hasn’t raised her prices. “I want to keep my customers happy,” she says. However, this decision makes it tough for her to sustain her business. Two lower federal courts recently ruled against the legality of these tariffs, but the case is now heading to the Supreme Court.

Brian Peck, an expert in trade law, notes that small businesses can struggle under such financial pressure. “Mom-and-pop shops don’t have the resources to absorb these costs,” he explains. If the Supreme Court upholds the tariffs, businesses like Adekoya’s will have fewer options for sourcing ingredients.

The tariffs have already affected Adekoya’s plans for expansion. She limits her cookie flavors based on what she can afford to source. “I focus on the core flavors,” she explains, “while the specialty ones depend on availability.”

Many small business owners share Adekoya’s struggles. A recent survey found that over 60% of small businesses faced rising costs due to tariffs, and some, like Adekoya, are choosing to absorb these expenses for now.

In tough times, Adekoya’s positive mindset keeps her going. “If I didn’t have that when I started, I wouldn’t be here,” she reflects. Her story is a reminder of the resilience found in small businesses across America.

For more on this topic, you can read CBS News’ detailed coverage here.

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Los Angeles, Small Business, Tariffs