How Long Can a Business Absorb the Cost?

For many producers, tariffs don’t just raise costs—they test how long a business can hold the line before something breaks. At St. George Spirits, an artisanal distillery with 35 employees, that pressure is already clear.

“We import hundreds of thousands of glass bottles directly from Germany. From previously no duty to the now 15% has added thousands and thousands of dollars to every container we import. Other imported items have had tariff surcharges added to our bill. We have, to date, absorbed the cost and not raised prices - but cannot continue to do so indefinitely. We paid $68,000 directly for the imported bottles.”

A key input—glass bottles—went from duty-free to a 15% tariff overnight. The result isn’t abstract. It’s thousands of dollars added to every shipment, and tens of thousands already paid out just to keep operations running as usual.

And like many small and mid-sized businesses, St. George Spirits made the difficult choice to absorb those costs rather than pass them on to customers. But that decision has limits.

Absorbing tariffs means tighter margins, less flexibility, and mounting pressure over time. It’s not a long-term strategy—it’s a temporary buffer. And eventually, businesses are forced to make a change. Raise prices. Cut costs. Delay investment. Rethink growth. None of those options are good—for the business, its employees, or its customers.

Tariffs aren’t just shifting trade flows—they’re shifting the burden directly onto businesses that are trying to produce, hire, and compete.

If your business is facing the same pressure, join us in calling for tariff relief and refunds. Add your voice today.