As new global tariffs take effect, the impact is being felt on local businesses in Las Vegas, particularly in the souvenir retail sector.
A recent report highlighted the implementation of reciprocal tariffs ranging from 10% to 50% that took effect on Thursday for 70 countries, with more than 150 countries facing a baseline tariff of 10% established earlier in April.
According to the nonpartisan Yale Budget Lab, these tariffs are now the highest seen in the United States since 1935, with U.S. households potentially facing an average increase of $2,400 due to rising prices.
Local shop owner Jimmy Singh, who operates Las Vegas Souvenirs & Gifts, has already begun experiencing the effects of these tariffs.
Singh emphasized that increased costs are affecting his ability to purchase merchandise and, in turn, are leading to higher prices for customers.
“So the prices are going higher and I can’t buy too. The customers, the same thing. They cannot buy also for expensive items,” he stated.
Singh sources much of his merchandise from China but also imports items from countries like India, Thailand, Bangladesh, Vietnam, and Mexico, which are also now subject to new tariffs.
The tariffs imposed range significantly; for instance, Vietnam and Bangladesh are facing 20%, Thailand is at 19%, India and Mexico at 25%, while tariffs on Chinese goods soar to 55%.
Singh is particularly concerned about the tariffs affecting India, as the Trump Administration has placed a 20-day review period before potentially implementing a 50% tariff on Indian goods.
“When they put to 50%, I don’t think that we can pay that much for the t-shirt and dresses,” Singh expressed, anticipating significant price increases.
The price hikes are already evident; items that were once affordable are now reaching new heights.
According to Singh, a popular item he sells, which was previously priced at $10 for a shot glass, has recently jumped to $13.99 within the span of just three months.
The increasing costs are not isolated to Singh’s shop. Other local businesses are also feeling the crunch, with many either increasing prices or preparing to do so due to the ongoing tariff situation.
Local economists are raising alarms about inflation and the additional financial strain placed on consumers due to these tariffs.
Customers, as well, have noticed the upward trajectory of prices. Ray Arreola, visiting from Fort Worth, Texas, shared his shopping experience in Las Vegas.
He noted that a key/knife that cost $5.99 in March has now risen to $7.99.
Similarly, a bottle cap opener keychain increased from $1.99 to $3.99, further highlighting how rapid price changes are creating challenges for shoppers.
In response to the rising costs, Singh stated that he is doing his best to absorb some of the expenses, admitting that he has been left to shoulder about 60% of the cost increases without transferring it all to consumers.
To counteract the diminishing sales and rising costs, Singh has attempted to diversify his inventory by adding trendy items, but this strategy has not significantly alleviated the financial burden.
Instead of stocking more items, he has found it necessary to reduce the quantity of products he buys, stating, “We had to bring less because we can’t sell it.”
Currently, Singh reports that business is down approximately 30%. He, like others in the community, is on alert for additional cost increases which may force him to revise his prices further.
If costs exceed a rise of 30% to 50%, Singh may have no option but to raise many of his prices, likely further straining the budget of his customer base.
As new tariffs remain in place, Singh and his clientele hope for swift relief and new trade agreements that may ease current tensions and economic challenges in the retail landscape.
image source from：ktnv
