In U.S. capital, Trump tariffs bite into restaurant profits
By Beiyi SEOW
Brazilian coffee beans, French champagne and Chinese teas -- drinks are a profit driver for U.S. restaurants, but higher import costs have eaten into margins and fed into consumer prices in the three months since President Donald Trump unveiled sweeping global tariffs.
A stone's throw from the White House, a restaurant group that takes pride in dishing up fresh local meat and produce has found itself having to raise prices on its menus.
"The reality is, we have to pass along some of those to our guests," said John Filkins, corporate beverage director at Clyde's Restaurant Group. "Could be anywhere from 50 cents to $1 on certain wines by the glass, or spirits, or some of our food menu items."
"We've seen huge increases in coffee and in teas, and we're beginning to see some of those increases in food, as well as paper products coming on through as well," he added.
Clyde's, which opened in the 1960s in Washington, has more than a dozen restaurants in and around the U.S. capital.
One of them is The Hamilton in downtown Washington, where drinks prices have ticked up.
While management has tried to limit increases, Filkins said this has been tough.
Businesses have encountered snarled supply chains and higher costs since Trump imposed fresh tariffs after returning to the presidency in January.
In April, the president unleashed his widest-ranging salvo, a 10 percent duty on imports from most trading partners. This is expected to surge to higher levels for dozens of economies.
Leaders like Filkins are eyeing a deadline next Wednesday when the steeper tariffs are due to kick in.
These are customized to each partner, with the level for European Union products rising to 20 percent and that for Japanese goods jumping to 24 percent unless they strike deals to avert or lower the rates.
Filkins warned that the longer tariffs remain in place, the fewer small, independent distributors, importers and restaurants there might be.
"The hope is we don't see tariffs to the extent where we're seeing them any longer," he added. "Restaurants are, at the end of the day, typically low cash, low margin."
A typical outfit probably runs "in the single digits in terms of profit margin," he noted.
This means that cutting out 10 percent to 15 percent of their profit for wine by the glass, for example, could prove a significant blow.
Clyde's sources coffee beans from places like Brazil and Indonesia for its blends, while getting teas from India and China.
"Over the course of the last probably six months, we've seen about a 20 to 30 percent increase of that cost," Filkins said.
This is partly because suppliers and distributors are not only paying the 10 percent tariff but forking out more due to exchange rates.
Imports from China face a 30 percent tariff currently even though Washington and Beijing have temporarily lowered tit-for-tat levies on each other's goods.
Without a deal, products from Indonesia face a 32 percent duty come Wednesday, and the rate for India spikes to 26 percent.
"For liquor, beer and wine, most of the wine we import comes from the EU," Filkins said, noting the impact is biggest on products from France, Italy, Spain and Portugal so far.
Yet, his company is trying to hold off passing on additional costs entirely.
"Consumers are not comfortable spending more in the current climate," said Filkins.
The world's biggest economy has fared well after the COVID-19 pandemic, helped by a solid labor market that allowed consumers to keep spending.
But economic growth has slowed alongside hiring.
Economists are monitoring to see if tariffs feed more broadly into inflation this summer, and households become more selective with purchases.
With Trump's approach of announcing, adjusting and halting tariffs roiling financial markets and fueling uncertainty -- forcing businesses to put investments on hold -- Filkins hopes for an easing of levies.
"It's hard for all of us to forecast what's going to happen in the next eight days," said Filkins. "We can't base all of our decisions on speculation."
© 2025 AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yomiuri Shimbun
an hour ago
- Yomiuri Shimbun
Heirs to Kyoto Talent: Wooden Tub Craftsman Ensures Graceful, Flawless Curves; Charms Shared with Next Generation
KYOTO — Well-proportioned wooden tubs, called 'oke' in Japanese, are built with unparalleled precision, slowly and steadily crafting each one by hand with great care. Using a hand plane's cutting blade, Taichi Kondo meticulously shaves the gently curved surfaces of the planks on a stand, precisely adjusting their sizes. The planks are made from splitting Yoshino cedar and Kiso sawara cypress skilled wooden tub craftsman then aligns the planks side by side in a cylindrical shape. There cannot be any gaps between planks; not even a sliver of light can escape. This process requires years of experience to pull off, and there is no room for error. Kondo, 52, runs Okeya Kondo, an oke shop in Kyoto's Murasakino district, which is home to many of Kyoto's traditional industries, including textiles. When Kondo is busy breathing life into the wooden tubs, the workshop is filled with a tense atmosphere, as he is making 'lifetime pieces' for their future owners. Once the staves are finished, they are joined with rice glue and bamboo nails. All that is left to do seems to be fit the bottom panel in place for it to become a sturdy container, but it is not that easy. 'The upper edges of the staves need to be thin, while the bottom edges need to retain more thickness to maintain strength,' Kondo said about his self-set oke tub does not have a simple cylindrical shape. It has varying curvatures in different areas, requiring the use of planes of different shapes. He occasionally runs his hand over the surface to verify that it is smooth as he continues to give it a graceful curve. 'Oke are simple tools, but here in Kyoto, rough and rugged products won't be accepted,' he said. According to Kondo, elegant shapes and delicate styles are preferred in ryotei, Japanese restaurants, and ochaya, teahouse facilities providing entertainment by geiko and maiko. Kondo uses 300 different planes depending on the sizes of the products, which range from guinomi drinking cups to bathtubs. However, there are almost no metalwork craftspeople capable of manufacturing the planes he uses, so Kondo spent about 10 years collecting the tools from such places as an antique market at Toji temple in Minami Ward. The walls of his workshop are lined with planes of all sizes. Love at first sight Born in Osaka Prefecture, Kondo studied art and design at Kyoto Seika University. After completing his graduate studies there, he worked as an assistant at Osaka University of Arts and was involved in sculpture. A turning point came shortly after the end of his four-year term. Kondo was invited by an older graduate of Kyoto Seika University to work part-time at his family business. The person was Shuji Nakagawa, whose family runs an oke tub shop in Sakyo Ward, and whose father Kiyotsugu Nakagawa was designated as a living national treasure in the time, Kondo had thought that plastic buckets and bowls were the norm and was not familiar with wooden tubs. However, when he saw a wooden bath bucket crafted by a woodworker, he was struck by its beauty. It was love at first sight. The woodworker was known as the most skilled in Kyoto and would later become his teacher and mentor. Kondo gradually learned the craft while helping at the shop. He trained for about seven years from 2002. In 2009, at the age of 36, he opened his own workshop in the Murasakino district and became independent. In the past, wooden tubs were used as cooked rice containers, laundry tubs and other essential everyday items. In Kyoto, each local community had one oke tub shop, and in the 1960s there were 300 in the city. Today, only a few remain. Nevertheless, as an oke specialist, Kondo chooses wood and other materials that are appropriate for the tub's intended use. Kiso sawara cypress, which is used for sushi containers, absorbs excess moisture to help the cooked rice maintain its proper luster. Yoshino cedar, which is used for guinomi sake cups, has a fragrance that complements Japanese sake. He accepts various custom orders, ranging from Shinto shrine utensils to ladles for scooping sauce for grilled eel. Unique products Kondo buys wood in Nara and Nagano prefectures. He then exposes it to rain, wind and sunlight for several months, which causes the water-soluble resin contained in the wood to dissolve. As it dries, the wood expands and contracts repeatedly. 'As oke are used continuously under harsh conditions, they must be finished in a way that minimizes warping during use,' Kondo for his technical expertise and dedication, Kondo was selected as an up-and-coming craftsperson with particularly high skills by Kyoto Prefecture in 2012. He became a master of traditional crafts in 2017, certified by the Tokyo-based Association for the Promotion of Traditional Craft Industries to those with exceptional skills. Believing in the potential of wooden tubs, Kondo also creates unique products such as wine coolers and 'oke mugs,' the latter of which can be used as both a cup and a small bowl. These products are popular, as they are more likely to keep their contents hot or cold due to the insulating properties of the wood. To allow people to experience the charm of wooden tubs, Kondo demonstrates his craftsmanship at department stores and other venues. 'Many young people take the time to pick up and look closely at my products,' Kondo said. 'Without people using the tubs, I cannot continue making them. I want to do my best to pass on my tub-making skills.' ***If you are interested in the original Japanese version of this story, click here. Related Articles Heirs to Kyoto Talent: Metal Ornament Craftsmen Responsible for Cultural Properties Has Impressive Workmanship Heirs to Kyoto Talent: Lacquer Artisan Sees Beyond Buddhist Utensils; Developing Skills for Future Generation Heirs to Kyoto Talent: Noh Masks Carver Gives Deep Expression to Face Heirs to Kyoto Talent: Hakuoshi Leaf Stamping Artisan Works to Infuse Japanese Soul in His Kyo-sensu Folding Fans Heirs to Kyoto Talent: Maki-e Artisan Uses Brilliant Skill to Preserve Traditional Lacquerware Craft Heirs to Kyoto Talent / Artist in Japan Adds Modern Touch to Traditional Straw Craft; Fujii Shows Off Potential of Straw Through Various Works Heirs to Kyoto Talent / Handweaving Artisan Uses His Skill to Repair Cultural Properties Heirs to Kyoto Talent / Sculptor Creates Buddhist Statues Filled with Unchanging Beauty; Artist Makes Exquisite Works
Kyodo News
3 hours ago
- Kyodo News
Kyodo News Digest: July 5, 2025
TOKYO - The following is the latest list of selected news summaries by Kyodo News. ---------- Japan's ruling bloc not yet assured of upper house majority: poll TOKYO - Japan's ruling coalition is locked in a fierce battle with the opposition to secure a majority in the House of Councillors in the July 20 election, a Kyodo News poll and analysis showed Friday, leaving Prime Minister Shigeru Ishiba's goal of maintaining control of the chamber uncertain. The ruling Liberal Democratic Party is expected to lose ground from its pre-election strength in the 248-member chamber, as the Constitutional Democratic Party of Japan and the Democratic Party for the People are likely to gain seats. The ultraconservative Sanseito party also appears to be gaining momentum. ---------- M5.4 quake shakes southwestern Japan islands as temblors continue TOKYO - A quake with a preliminary magnitude of 5.4 rattled islands in southwestern Japan on Saturday, the latest in a series of temblors that have prompted some residents to evacuate. The quake struck off the Tokara island chain at 6:29 a.m. at a depth of about 19 kilometers, though no tsunami warning was issued, according to the Japan Meteorological Agency. It measured upper 5 on the Japanese seismic intensity scale of 7. ---------- TSMC to delay Japan plant, prioritizes U.S. to avoid tariffs: report TAIPEI - The world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co., plans to delay construction of its second plant in Japan to prioritize investment in its U.S. operations to avoid tariffs, The Wall Street Journal reported Friday. Construction was initially scheduled to begin early this year but was pushed back, and further delays to the second plant in Kumamoto Prefecture are likely, with the start of construction no longer predictable with accuracy, the WSJ reported citing people familiar with TSMC's plans. ---------- Gov't to hold "golden share" in Rapidus to guard chip technologies TOKYO - The Japanese government plans to strengthen its support for chip venture Rapidus Corp. by holding a "golden share" in the company and gaining veto power on important management decisions, it said Friday. The Ministry of Economy, Trade and Industry expects the government's close involvement in the chip company's operations to prevent leaks of next-generation chip technologies. ---------- Japan PM counters Trump's view on rice imports ahead of election TOKYO - Prime Minister Shigeru Ishiba on Friday pushed back against U.S. President Donald Trump's claim that Japan is not importing U.S. rice, saying the misconception should be corrected. Ishiba's comment, made during a meeting with farmers on the second day of campaigning for a nationwide parliamentary election, followed his remark the previous day that Trump may be misinformed about Japan's imports of rice and cars from the United States. ---------- Sales of cooling goods picking up in Japan amid sweltering heat TOKYO - Intense summer heat in Japan is prompting more people to buy items to prevent heat stroke and heat exhaustion, ranging from parasols for children to workwear with built-in cooling functions. Ogawa Co., an umbrella and parasol manufacturer in Nagoya, said sales of its mainstay products among all-weather umbrellas for children increased 1.7-fold in the first half of this year compared with a year ago. ---------- Tennis: Osaka beaten by Pavlyuchenkova in Wimbledon 3rd round LONDON - Japan's former World No. 1 Naomi Osaka was beaten by third-round opponent Anastasia Pavlyuchenkova at Wimbledon on Friday, exiting the tournament 3-6, 6-4, 6-4 in a thrilling 2-hour, 3-minute battle. The 27-year-old Osaka was aiming to reach the fourth round of the grass court Grand Slam for the first time in her career. ---------- Video: Painted cypress fans aired out at World Heritage-listed shrine
Japan Today
4 hours ago
- Japan Today
Japan plans 'world first' deep-sea mineral extraction
The Chikyu, pictured here in 2013, will drill around the remote island of Minami Torishima Japan will from January attempt to extract rare earth minerals from the ocean floor in the deepest trial of its kind, the director of a government innovation program said Thursday. Earlier this week the country pledged to work with the United States, India and Australia to ensure a stable supply of critical minerals, as concern grows over China's dominance in resources vital to new technologies. Rare earths -- 17 metals difficult to extract from the Earth's crust -- are used in everything from electric vehicles to hard drives, wind turbines and missiles. China accounts for almost two-thirds of rare earth mining production and 92 percent of global refined output, according to the International Energy Agency. A Japanese deep-sea scientific drilling boat called the Chikyu will from January conduct a "test cruise" to retrieve ocean floor sediments that contain rare earth elements, said Shoichi Ishii, director of Japan's Cross-ministerial Strategic Innovation Promotion Program. "The test to retrieve the sediments from 5,500 meters water depth is the first in the world," he told AFP. "Our goal... of this cruise is to test the function of all mining equipment," so the amount of sediment extracted "doesn't matter at all", Ishii added. The Chikyu will drill in Japanese economic waters around the remote island of Minami Torishima in the Pacific -- the easternmost point of Japan, also used as a military base. Japan's Nikkei business daily reported that the mission aims to extract 35 tonnes of mud from the sea floor over around three weeks. Each tonne is expected to contain around two kilograms of rare earth minerals, which are often used to make magnets that are essential in modern electronics. Deep-sea mining has become a geopolitical flashpoint, with anxiety growing over a push by US President Donald Trump to fast-track the practice in international waters. Beijing has since April required licenses to export rare earths from China, a move seen as retaliation for U.S. curbs on the import of Chinese goods. Environmental campaigners warn that deep-sea mining threatens marine ecosystems and will disrupt the sea floor. The International Seabed Authority, which has jurisdiction over the ocean floor outside national waters, is meeting later this month to discuss a global code to regulate mining in the ocean depths. © 2025 AFP
