Iowa small businesses feel tariff squeeze
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Iowa business owners say they started feeling the pain of tariffs last year, and this year's Supreme Court ruling hasn't brought any clarity for the future.
Why it matters: Small business owners say their profit margins are too small to absorb tariff-related price shocks, making planning for the future difficult.
Catch up quick: Courts struck down President Trump's tariffs last month, noting the government needs to refund companies and consumers for their added costs. But it's unclear when those repayments will be made.
- Trump also instituted a 10% global tariff after the ruling.
State of play: In West Des Moines' Valley Junction, shop owners have shared growing concerns, especially since many of their products come from overseas, says Steve Frevert, executive director of the Historic Valley Junction Foundation.
- "Their vendors would hike the price astronomically to cover their tariff costs," Frevert says. "So that gets passed on to the businesses."
Zoom in: Velorosa, a local women's cycling apparel brand, is navigating the uncertainty carefully.
- The company launched in 2015 and sold clothing online, at events, and with nearby retailers like Scheel's.
- Co-owners Kim Hopkins and Lisa Carponelli chose to "press pause" for 2026, ordering no new inventory, largely because of tariff unpredictability, Hopkins says.
- Velorosa has so far avoided tariff costs by ordering inventory ahead of time and does not need to go through the refund process.
What they're saying: "We just made the decision it's not worth the risk for us to order a bunch of inventory that we think is going to be one price, and that could change by the time it arrives on our doorstep," Hopkins says.
Ben Jung, owner of Ingersoll Wine and Spirits, told the Des Moines Register that tariff costs started hitting his business in late 2025 on imports from countries like France, Germany and Italy.
- Even with the court ruling, ongoing uncertainty from Trump's latest 10% tariff means distributors continue raising prices, Jung says.
What's next: Updates in this case — no matter how incremental — are being followed closely by businesses waiting for, in some cases, large sums of money in refunds.
Disclaimer: Reporter Linh Ta has worked with Velorosa.