Businesses of all kinds are trying to keep up with constant market shifts and effects on prices that are sometimes out of their control. As new tariffs take hold, South Dakota’s small business community is pivoting, with owners trying to limit higher costs for customers while protecting their bottom line.
Economists say the latest tariffs announced by President Donald Trump could lead to higher costs for products like food, electronics and clothing.
Deanna Muellenberg, who owns The Purple Pigeon Coffeehouse in Chamberlain, says coffee prices for her have increased by 40% since she opened her doors last year.
“You know, I want to keep prices affordable for people that live in these small towns, but in order to be able to keep the doors open too, I might have to increase my costs.”
So far, she’s had to resort to a small price hike, using other popular items to help offset the rising price of coffee supplies.
Nathan Sanderson of the South Dakota Retailers Association acknowledges President Trump’s argument about the need to “reset” the global trade market to establish fairness. He says with the constant uncertainty, policymakers need to set a tone that emphasizes buying from local businesses.
“[Small] businesses are absolutely the heartbeat of rural communities. I mean, they are the entities that are supporting the local baseball team or the FFA chapter, or the dance troupe or what have you.”
Beyond tariffs, Sanderson says another challenge facing Main Street economies is older business owners nearing retirement, with no next generation standing by to take over.
According to federal data, South Dakota is home to nearly 90 thousand small businesses.
Story courtesy of the Greater Dakota News Service.
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