CARRBORO, N.C. — Businesses and customers may be feeling a pinch this holiday season from the Trump administration’s decision earlier this year to raise taxes on imported goods.
The owner of Ali Cat Toys, Bipin Shah, welcomes each customer. He’s been doing this faithfully for two years now.
When he first purchased the toy store, Shah said it was a no brainer, although he knew it would come with challenges.
“The prices of almost everything has increased, I would say, from 10% to 15%,” Shah said.
That’s because the Trump administration advocated for higher taxes on foreign goods earlier this year.
Small businesses like Ali Cat are feeling the impact.
“Anywhere from 90% to 95% of our items have been impacted by the tariffs,” Shah said.
Shad in an August interview said 70% of the products in his store are made in China.
This week, he said 85% of the products in the store come from overseas.
He said the price increases are still up at least 10%, as they were in August.
“So that is really something that we have to deal with right now,” Shah said.
Ali Cat Toys has been a community staple for nearly 40 years.
Shah recently opened a Morrisville location.
To help his customers, Shah said he’s been trying to use American manufacturers — that way he can keep his products at a reasonable price.
“If we can get some items that are made in the U.S., we would prefer that. Given that, we do not have to pay the tariff, and then if we do not have to pay the tariff, then we don’t have to increase the prices of those items,” he said.
Shah said whatever the federal government does regarding small businesses, he will try to be prepared.
He said Ali Cat Toys will be around for another decade or more.
The National Retail Federation’s holiday forecast predicted retail sales growth at around 4% this season, even with tariffs causing price uncertainty.
The report predicted that people would still spend money – just at higher prices.
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Jatrissa Wooten
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