Uncertainty over tariffs creates challenges for small pretzel business

President Trump’s tariffs are expected to cost the U.S. baking industry $454 million and will particularly impact small businesses like Uncle Jerry’s Pretzels in Pennsylvania. The new tariffs, which include additional tariffs on clothing, electronics, chocolate, packaging, and labeling, have already forced Uncle Jerry’s to discontinue some pretzel varieties and consider raising prices on their remaining products. Misty Skolnick, who co-owns Uncle Jerry’s, is worried about how the tariffs will affect their business and their ability to provide high-quality products at reasonable prices. Small businesses like Uncle Jerry’s, which rely on imported goods, are particularly vulnerable to the tariffs, as the increased costs may lead to reduced profitability or downsizing. Larger suppliers and the entire baking industry are also expected to be significantly impacted by the tariffs. The American Bakers Association estimates that the U.S. baking industry will incur $454 million in additional costs this year due to country-specific tariffs on imports from Mexico, Canada, and China. While larger companies may be able to absorb the increased costs, small businesses like Uncle Jerry’s do not have as much cushion. Skolnick is trying to navigate the uncertain business climate by considering strategies like stockpiling inventory and negotiating price agreements with suppliers. While Uncle Jerry’s has had to raise prices before, Skolnick is hoping to wait for more information before making any major changes to their business. Her father’s advice to not overreact and wait for the facts on the ground is guiding their decision-making process during this challenging time.