NEW YORK (AP) — The shelves of Economy Candy are filled to the brim with treats from around the globe – gummies hailing from Germany, lollipops from Spain, chocolates from Japan, and a multitude of candies sourced from various parts of the U.S.
Amidst this delightful selection, with vibrant jellybeans flanking him on one side and unique Kit Kats on the other, owner Mitchell Cohen quickly assesses the extent of the impact that the historic round of tariffs declared by President Donald Trump will have on the shop’s 2,000-plus products.
“I believe it affects all of them,” states Cohen, situated at his shop in New York’s Lower East Side.
Almost no aspect of the American economy remains unaffected, either directly or indirectly, by the sweeping tariffs imposed by Trump, not even a small store like Economy Candy.
Cohen had just started to see a reduction in the inflation-driven price hikes from suppliers when the threats of tariffs surfaced. With a name like Economy Candy, he strives to keep prices low but is anxious about how much prices might increase in the near future.
“I foresee another wave of hyperinflation on certain items,” Cohen, 39, comments. “When tariffs are imposed across the board, prices are bound to rise.”
Walking into Economy Candy feels like stepping back in time. Its name is prominently displayed on a sign in vintage, bold red lettering, and as you walk under its green-and-white striped awning, past bins filled with Smarties, butterscotches, and Lemonheads in the front window, an indescribable sweetness fills the air, accompanied by oldies music playing overhead and customers wandering around mounds of nostalgic candy bars they may have forgotten about.
This candy haven accounts for only a small fraction of the nation’s $54 billion candy market. However, it has already been experiencing the effects of rising prices for cocoa and other ingredients before additional tariffs were applied.
According to Consumer Price Index data, candy and gum prices have surged roughly 34% over the past five years and 89% since 2005. As per the National Confectioners Association, the price has become the primary consideration in consumers’ candy purchasing decisions, surpassing the customers’ mood.
Approximately one-third of Economy Candy’s inventory is imported, crammed onto shelves and tables towards the back of the store. Cohen proudly claims they offer “more varieties of German Haribo than the Haribo store in Germany,” along with gummies produced in France, Austria, and the UK.
The shop stocks every Milka bar available in Switzerland, all types of Leone hard candies from Italy, and as many exotic Kit Kats from Japan as can possibly fit.
The burden of tariffs is clearly evident on such products.
For instance, pistachio Snickers bars from India are now subjected to a 26% tariff, while passion fruit mousse Snickers from Portugal face a 20% tariff due to EU regulations.
Even an American-made Snickers isn’t spared.
While these bars may be produced in Texas, they depend on ingredients sourced globally. Sourcemap, a supply chain tracking company, indicates that Snickers bars utilize chocolate from Guyana, peanuts from Argentina, and sugar from Brazil, all packaged in materials from Canada, which are now subject to various tariff levels.
“There are numerous ingredients in there that originate from other nations,” states Andreas Waldkirch, an economics professor at Colby College who teaches international trade. “Unless you’re discussing a very basic item from your local farmers market, almost every product relies on ingredients from abroad. Those indirect costs are what will truly inflate prices.”
This scenario resonates across other American candies stocked in the store – boxes of Nerds, bags of Sugar Babies, and rolls of Smarties are all inevitably tied to the international supply chain.
A table overflowing with these domestic favorites takes center stage near the entrance of Economy Candy. Cohen inherited the store from his parents, who, in turn, took it from Cohen’s grandparents. He got his first haircut in this very shop, was behind the register as a child, and brought his wife here on their first date.
As a child, everything on that centerpiece table of American treats cost 59 cents. By 2020, that price rose to $1.29, although customers who purchased an entire box could buy at a reduced rate of $1 per piece.
Now, Cohen is unable to procure them wholesale at that cost.
Today, he offers the items for $1.59. Cohen refers to the selection as a “loss leader” yet believes it’s crucial to showcase the affordability of his store. Once the tariffs are fully in place, he is uncertain about his ability to avoid price hikes.
“When your margins shrink and your dollar doesn’t stretch as far as it used to, you begin to notice it,” he explains. “However, I don’t want anyone to walk into Economy Candy and feel like it’s not economical.”
The most significant implications of the tariff measures understandably attract the most attention – a car’s price may skyrocket by thousands of dollars, or tens of thousands may vanish from a retirement account in a single day. Yet among the root beer barrels and strands of licorice, it’s a stark reminder that small-dollar items are also affected, as well as the families who sell them.
When Cohen’s grandfather founded the business, it initially focused on shoe and hat repairs. However, during the Great Depression, when few residents in a neighborhood filled with tenements had money for such repairs, the business made a shift.
Candy, which was once sold from a cart out front, eventually dominated the store.
Throughout the 88 years since, business hasn’t always been a sweet treat. The Sept. 11 attacks deterred tourists, leaving sales in a slump, and the pandemic forced the store to pivot to online sales.
If tariffs disrupt operations, Cohen is unsure how he might adapt once more. He sells products not made in America, alongside American items crafted with globally sourced ingredients. He had just started making strides in launching international sales, but the complexities of tariff regulations could well make it impossible.
The average U.S. tariff could soar to nearly 25% if the import taxes Trump imposed on goods from numerous countries are fully enacted. This would mark the highest rate in over a century, reminiscent of tariffs often blamed for aggravating the Great Depression.
Trump proclaimed that the tariffs represent a “liberation day” for a nation he claims has been “looted, pillaged, raped, and plundered” by both allies and adversaries, asserting that it was “very, very good news” for the U.S.
Cohen, however, questions how that could possibly apply to a business like his.
“I can see the benefit of bringing manufacturing back to America, but we rely on raw materials that simply aren’t produced here,” he states. “And you can’t expect to find a green tea Japanese Kit Kat from an American company.”
As Cohen stood in front of a bounty of strawberry candies wrapped in shiny foil and small cubes of caramel encased in cellophane, he received his first indication of the tariff’s tangible impact. An email from a French supplier informed him of an immediate 5% surcharge being applied due to the tariffs, expressing regret over the necessary decision and hoping for a “swift resolution” to the situation.
Despite this, Cohen maintains a smile. He wishes for his store to remain a joyful destination for visitors.
“You step back into a time where nothing else mattered,” Cohen reflects, “when worries were non-existent.”
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Matt Sedensky can be reached at [email protected] and https://x.com/sedensky.
