For this tea shop, it's not just tariffs weighing on business

We're continuing to check in with businesses across the country about how they're navigating tariff refunds and the shifting tariff landscape.

The U.S. government has so far issued at least $100 billion in refunds. This has been a windfall for big businesses like Walmart and Target, who are getting billions of dollars back.

But the same can't be said for everybody else — including Rachel Rozner, owner and founder of Elden Street Tea Shop in Reston, Virginia. She spoke with “Marketplace Morning Report” host Kimberly Adams for more on this. The following is an edited transcript of their conversation.

Kimberly Adams: The last time you joined us, you said your business was still considering whether or not to apply for tariff refunds. Where did you land with that?

Rachel Rozner: We did apply. We are still waiting for the next steps, so we're just kind of — great if we can get it sooner rather than later. But we have had success from our vendors reaching out to us, saying that they have gotten refunds, and they are going to be working with the vendor accounts to distribute funds that way.

Adams: It feels like your business is particularly sensitive to tariffs. Why is that?

Rozner: Well, most of the products that we buy are not grown here in the United States. In this newest round of tariffs with Canada, tea is actually exempt from the tariff schedule. However, that does not make us safe and free and clear from these tariffs.

Things like packaging, paper products, as well as July tariffs that went into effect around the world. We are dealing with supply chain issues and trying to get those spices and herbs that we get from all around the world to come in at a reasonable, workable price, and it's becoming very, very hard. The amount of time that I have to sift through vendors for cardamom or for lavender or chamomile, it takes time away from my daily tasks, and money.

Adams: How much time are you spending sorting through just what tariffs you even have to pay?

Rozner: Oh, I would definitely say about three hours to four hours a day.

Adams: Every day?

Rozner: I would say most days, five out of seven. We order things on a regular basis, and it changes daily — what our vendors can offer as prices. When we run out of a product, that vendor might not have it in, and so then I have to go and maybe work with a different vendor that I have never worked with before. Make sure that they're organic compliant … different fair trade practices. You know, we have a long list of rules that we set for working, for vendors, and so it takes a long time to source those products.

Adams: What does this mean for the prices that you actually charge to your customers?

Rozner: Right now, we are holding steady at our prices. We did increase them slightly last year, but we are holding steady at our prices. We have had to level out the playing field, because our customers are also feeling this impact. You know, everything they buy is much more expensive now, and so we want to make sure that they are still able to enjoy their daily cup of tea that they like getting from our shop. And we're kind of just weathering the storm as long as we can.

Adams: Right now, we're also dealing with just overall elevated inflation and the economic ramifications of this ongoing war in the Middle East, which is causing higher fuel prices. How's that showing up for your business?

Rozner: The price of herbs and spices, cardamom especially, has gone up about 30%. And as we come into tea season — fall is very much tea season. Masala chai — those spices and herbs are going to cost us a lot of money. And quite honestly, it's going to make holiday season very tough for us to get where we need to be for the beginning of the year.

Adams: I can hear the frustration in your voice.

Rozner: It is frustration, but it's also like becoming the norm, which is not good. But we just — as small business owners do — we kind of try to figure out the new piece to the puzzle and keep going. And at some point, we might have to make decisions on the direction that our business is going at this time. It's really frustrating, and in order to grow, we need stability, and that's just not something that's happened in this administration.

Adams: When are you going to have to make those hard choices?

Rozner: That is a very good question. I'm not ready to make that choice right now, but we will see where it goes with the tariffs. Hopefully, we might be able to see these tariffs kind of go away — my hope is before the holiday season. I know that's very optimistic, but I have no other choice right now.

Adams: A lot of people, when they're stressed out, will drink a cup of tea to calm down. What do you do?

Rozner: [Laughs] I mean, I do drink a stronger cup of tea. Let's just put it that way.