Los Angeles Baker Faces Tariff Challenges Amid Growing Business
Los Angeles – In the heart of Los Angeles, Lara Adekoya has transformed her passion for baking into a thriving business. What began as a small operation during the pandemic has blossomed into a popular bakery, Fleurs et Sel, where customers eagerly line up for unique cookie flavors such as oatmeal chocolate chip walnut, peanut butter and Nutella, and matcha dark chocolate. However, Adekoya’s success is now overshadowed by the financial strain imposed by tariffs on imported ingredients.
The Impact of Tariffs on Small Businesses
Adekoya’s journey into the baking world started in the midst of the COVID-19 pandemic, when she began selling cookies to customers who approached her home wearing masks. As her reputation grew, so did her customer base, leading her to open a dedicated bakery. Yet, the joy of entrepreneurship has been tempered by rising costs. Adekoya reports that she is now paying between $50 to $100 more per bag for premium ingredients sourced from countries like France and Japan, a direct consequence of tariffs implemented during the Trump administration.
According to Adekoya, these increased costs translate to an additional $3,000 to $4,000 per month in expenses. Despite the financial burden, she has chosen not to pass these costs onto her customers, opting instead to absorb the expenses herself. “I guess the easy answer is like, raise your prices. I’m not at the point where I want to pass that on to my customers,” Adekoya stated in an interview with CBS News.
Legal Battles Over Tariffs
The situation is further complicated by ongoing legal disputes surrounding these tariffs. Two lower federal courts have ruled that the “reciprocal” tariffs, which range from 15% to 50%, are illegal. The Trump administration has appealed this decision to the Supreme Court, leaving many small businesses in limbo.
Brian Peck, executive director of the USC Center for Transnational Law and Business, emphasizes the dire consequences for small enterprises. “Mom and pop shops, they don’t have the resources to absorb these high costs imposed by these tariffs,” he explained. If the Supreme Court upholds the tariffs, it could grant the president unprecedented authority to impose tariffs on various countries, severely limiting small businesses’ options for sourcing ingredients.
Navigating Supply Chain Challenges
The rising costs have forced Adekoya to reconsider her business strategy. She has had to delay plans for expansion and limit the availability of certain cookie flavors that rely on imported ingredients. “I have those core flavors that I know I can get those ingredients. And then the specialty flavors, I can just throw them in and out based on being able to source them,” she explained. This adaptability is crucial for her survival in a challenging economic landscape.
Adekoya’s resilience is evident in her approach to business. “I have to find a way to persevere. If I didn’t have that mindset when I started my business, I wouldn’t have gotten this far,” she remarked. Her determination reflects a broader trend among small business owners who are navigating the complexities of a post-pandemic economy.
The Broader Economic Context
The challenges faced by Adekoya are not isolated. Many small businesses across the United States are grappling with similar issues as they attempt to recover from the pandemic’s economic fallout. The tariffs, initially intended to protect American industries, have inadvertently placed a heavy burden on small enterprises that rely on imported goods.
Historically, tariffs have been a contentious issue in American trade policy. The Smoot-Hawley Tariff Act of 1930, for example, raised duties on hundreds of imports and is often cited as a contributing factor to the Great Depression. In recent years, the trade war initiated by the Trump administration has reignited debates over the effectiveness and consequences of tariffs.
Conclusion
As Lara Adekoya continues to navigate the complexities of running her bakery, her story serves as a microcosm of the challenges faced by small businesses in America today. The ongoing legal battles over tariffs and the rising costs of ingredients highlight the precarious position of entrepreneurs who are striving to thrive in an uncertain economic environment. Adekoya’s commitment to her craft and her customers exemplifies the resilience of small business owners, even in the face of adversity. As the Supreme Court prepares to hear the appeal regarding the legality of these tariffs, the outcome will have significant implications for countless small businesses like Fleurs et Sel across the nation.
