McMinnville small business owners wondering if they will see tariff refunds: 'We don't have Wall Street backing'

MCMINNVILLE, Ore. — Small business owners in McMinnville say they're doing everything they can to avoid passing on extra costs to their customers, but they're questioning when and if they'll ever see relief from federal tariff rebates reportedly on the way.

The Velvet Monkey tea shop says they've seen imported tea prices boil over.

"Our products are getting more expensive — over 200% in some cases," owner Richard Savage said.

He added that he hasn't been able to hire people locally in McMinnville or expand the business due to tariff uncertainty. Most imported products are facing about a 10% baseline tariff, with some goods taxed at a higher rate.

"Prices have increased, and the increases have been dramatic," said Linda Hayes of Hopscotch, a toy store on Northeast Third Street. "By the time they hit the consumer, my families are spending more for less." 

Hayes says many small businesses stocked extra inventory to get ahead of the tariffs and burned up their credit, like with Entwined, a yarn shop also on Third Street.

"We don't have large lines of credit. We don't have Wall Street backing. We are absorbing those increases on our own," said Leah Hayes, adding that knitting needles are up by more than 40%.

"So, something we were able to sell to our customers for $10 dollars is now costing them $14, $15 each needle, and that's causing a real impact I can see in my customers when they come in to pick out their projects," Hayes said. 

Those businesses owners shared their struggles with Democratic Congresswoman Andrea Salinas, who represents Oregon's 6th District.

"These are more than just small businesses; these are what make up the fabric of the community, and they consider customers part of their community and part of their families," Salinas said.

She said that federal tariff rebates approved by the U.S. Supreme Court are most likely headed to distributors and manufacturers — essentially, those in the middle — and it remains to be seen if any of that relief will actually trickle down to small businesses.