NEW MEXICO — Small businesses across New Mexico are grappling with a sharp rise in operating costs as new international tariffs take hold, particularly those importing products like tea, coffee, and packaging materials.
At Corrales Teas and Chocolates, owner Janelle Boyle says the cost of doing business has become unpredictable. “What used to be a manageable five to ten percent increase annually has now doubled in some cases,” she explained. Boyle said the volatility is largely due to high import tariffs, especially on goods coming from China, where rates can reach up to 300%. “It changes by the day. I have to monitor prices constantly and rush to place orders before the next hike,” she added.
To stay afloat, Boyle has shifted her tea house to a reservation-only model. This adjustment, she said, allows the staff to better control food preparation and limit waste. “Knowing who’s coming in lets us plan what to cook and reduces how much we throw away, particularly with imported ingredients,” she noted.
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Meanwhile, Burning Daylight Brewing Company in downtown Albuquerque is taking a different approach. Co-owner Charles Baca said the brewery is choosing to absorb the additional costs instead of raising prices. “We know consumers are more hesitant to spend on non-essentials like specialty drinks and dining out, so we’re focusing on building trust through price consistency,” Baca said.
To offset the impact, the brewery has started sourcing more cost-effective supplies, such as cheaper cups and packaging. “We’ve been able to hold off on passing costs to our customers so far, and we’re cautiously optimistic we can continue to do so,” he added.
The situation is compounded by challenges in the global coffee market, including weather disruptions in Brazil, the largest exporter to the U.S. A 50% tariff on Brazilian coffee is expected to take effect Wednesday, further straining supply chains.
For both tea and coffee sellers, the path ahead may require a blend of creativity, flexibility, and resilience as they navigate an increasingly unpredictable market.
