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Navigating tariffs feels like a "cat-and-mouse game" for this tea shop owner

Tariffs have raised the prices that tea shop owner Rachel Rozner pays. She’s now passing some of those costs on to customers.

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Above, a worker in Assam, India, plucks tea leaves at a tea garden. Stateside tea shop owner Rachel Rozner has stopped tea purchases from India in response to Trump's tariffs.
Above, a worker in Assam, India, plucks tea leaves at a tea garden. Stateside tea shop owner Rachel Rozner has stopped tea purchases from India in response to Trump's tariffs.
Arun Sankar/AFP via Getty Images

Tariffs go up, tariffs go down, new tariffs pop up, old ones are in limbo. For U.S. businesses, it is all just a lot.

So, we decided to once again check in with Rachel Rozner, the owner of Elden Street Tea Shop in Reston, Virginia. “We're kind of just holding on as much as possible, trying not to increase our prices,” she said back in July.

Rozner joined “Marketplace Morning Report” host Sabri Ben-Achour to update him on where business stands now. The following is an edited transcript of their conversation.

Sabri Ben-Achour: So last time we talked, you mentioned you were paying very high tariffs on tea coming in from China, but you do import tea from all over the world. But also you'd asked for some sort of exception to the tea tariffs. Are you still paying those same tariffs as you were in July?

Rachel Rozner: Yes, except India went up to 50%, so it's even worse.

Ben-Achour: Right, so you're actually paying more?

Rozner: Correct, yes. And actually, we are halting all purchases from India currently for tea. We're halting them until, I guess, the Supreme Court hearing on tariffs on Nov. 5, and it's become kind of a cat-and-mouse game of, "Can we buy things stateside, like our inclusions, like lavender and rose petals and things like that? Or is it cheaper for us to pay the tariff and bring it over?"

Ben-Achour: As we talked about last time, there's not a whole lot of tea grown in the U.S. It would basically be impossible to replace the global supply of tea with U.S. tea. But let me still ask, has the domestic tea industry here changed at all in response to tariffs?

Rozner: Yes, it has. It has gotten much more expensive. So any tea that's coming in through a middleman that sells it in the United States, it has gotten even more expensive.

Ben-Achour: In July, you mentioned that you had not yet started to raise prices for your customers. This is something that a lot of businesses have resisted doing, but at some point, it gets untenable. And I'm wondering, are you having to finally raise prices?

Rozner: Yes, we have raised prices on some of our teas. We will be 100% increased on our teas by the end of October, and coming into holiday season, getting different accessories that go along with tea is appearing to be impossible, just because of the markup that I'm going to have to make.

Ben-Achour: One year from now, where do you see yourself? Where do you see your business?

Rozner: I think a lot of it lays on the decision of the Supreme Court on Nov. 5 and what we're going to do with our business. I think we will probably consolidate what we're, what we have until the tariffs are lifted. And fortunately, our customers know that they are going to get delicious, good-quality tea, but it's going to be a little bit more expensive.

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