Memorial Day marks the unofficial start to summer, but this year, it may also kick off a season of higher prices. Small businesses that sell beer, fireworks and other summer staples told CNN they are grappling with higher costs amid new tariffs that the Trump administration placed on nearly all imports to the United States last month. Here’s what you should know. What could cost more — and what could cost less While many economists expect prices to rise from President Donald Trump’s tariffs, it’s certainly true that not all items are seeing price increases — yet. In fact, US inflation in April slowed to its lowest rate in more than four years. That means some summer products may still be spared from an inflationary squeeze as tariffs work their way through the economy, said Ernie Tedeschi, the former chief economist at the White House Council of Economic Advisers during the Biden administration and the director of economics at the Budget Lab at Yale University, which has been tracking the tariff impact on consumers. But if you’re planning a cookout, tariff-induced price increases could hit your grocery bill sooner than other price hikes. “Perishable goods like food are the imports that turn over more quickly,” Tedeschi said. “So the price that you see at any given time is more likely to reflect tariffs.” The cost of buying a new barbecue to grill that food might still be stable, though, he said. “Where there’s more of a delay on tariffs are things like durable goods, like a barbecue or grill,” Tedeschi said. “The reason is that retailers like Home Depot and Best Buy generally still have a large pre-tariff inventory. They will likely sell through that first before they start selling the tariffed goods that cost more.” Another key ingredient to most barbecues also hasn’t been spared by tariffs: beer. In April, President Donald Trump placed a 25% tariff on imported aluminum and steel, including empty aluminum cans and imported canned beer. About 38.5%, or 16.1 million barrels of imported beer, came in cans in 2024, according to the Brewers Association, a trade association for brewers. Even local, US-based brewers are feeling cost pressures rise. Sheila Malone, a manager at Long Ireland Beer Company in Riverhead, New York, told CNN that rising expenses have left the future of her business uncertain. Malone said she’s seen the cost of everything from hops to plastic cups rise over the last few years. Now, she estimates the cost of the aluminum cans her company purchases has risen between 10% and 15% this year. “Every day we open up our social media and we see another brewery that we follow saying they are closing their doors, and that’s a really scary reality for us,” Malone said. Long Ireland Beer Company recently raised its prices for the first time in years to keep up, said Malone, who added that the company is searching for lower-cost aluminum suppliers and seeking new ways to grow profits to stay afloat. Memorial Day weekend also kicks off the busy season for fireworks businesses. Douglas Burda, the CEO of Red Apple Fireworks, said the majority of fireworks are imported from China, which has been producing fireworks for hundreds of years. There are very few businesses that manufacture fireworks in the United States, Burda noted. On April 10, tariffs on nearly all Chinese imports, including fireworks, climbed as high as 145% as a tit-for-tat trade conflict between China and the United States escalated. About a month later, the Trump administration announced it would temporarily lower the tax on Chinese imports to 30%. Burda said he hasn’t had to raise prices yet, since his company has stockpiled enough fireworks to last through the summer in its large warehouse and retail spaces. However, Americans who buy fireworks at roadside stands will likely face higher prices this summer due to tariffs, Burda said. “Consumers by and large buy fireworks at the last minute on the side of the road. You’re always going to see higher prices when you do that,” Burda said. “But now, for certain, those already-high prices are going to be even higher.” However, there may be one place to find savings if you are one of the nearly 40 million Americans traveling by car this Memorial Day. The national average price of a gallon of gasoline is expected to be $3.08 on Memorial Day, according to projections released Tuesday by fuel savings platform GasBuddy. That is the lowest gas price for Memorial Day weekend since 2021. American-made For many Americans, Memorial Day is about more than pool parties and picnics. It is a day dedicated to honoring and remembering the people who died while serving in the US military. Americans who may be looking to purchase an American flag this holiday weekend will have a harder time finding cheaper flags produced overseas this year, said Reggie VandenBosch, who works at Valley Forge Flag Company, one of the largest American flag manufacturers. That’s because earlier this month, a major shipping loophole, known as the de minimis exemption, which allowed shipments of goods worth $800 or less to come into the United States duty-free, expired. Now those lower-cost shipments are taxed between 30% and 54%. Before the loophole was closed, e-commerce sites like Amazon had been flooded with cheaper flags claiming to be American-made. “Many Americans don’t think of an American flag as being an American flag if it’s made offshore,” VandenBosch said. “Now that the de minimis loophole was eliminated, we’re already starting to see sales return on those platforms back to the domestic players.”
Your Memorial Day cookout might be more expensive this year – thanks to tariffs
TruthLens AI Suggested Headline:
"Higher Prices Expected for Memorial Day Cookouts Due to New Tariffs"
CNN
7.8
TruthLens AI Summary
Memorial Day, traditionally seen as the unofficial start of summer, is expected to usher in a season of heightened prices for various consumer goods due to recently imposed tariffs by the Trump administration. These tariffs, which affect nearly all imports to the United States, have led small businesses that sell summer staples, including beer and fireworks, to confront increased costs. While some economists note that overall inflation in the U.S. has slowed, making it possible for certain products to remain unaffected by rising prices, perishable goods like food are likely to see price hikes sooner as they are more directly impacted by tariffs. Ernie Tedeschi, a former chief economist, pointed out that while durable goods such as barbecues may not see immediate price increases because retailers are still selling pre-tariff inventory, food items and beverages, particularly canned beer, are at risk of price surges. The Brewers Association indicates that a significant portion of beer consumed in the U.S. is canned, and local breweries are already feeling the financial strain from rising costs of ingredients and packaging materials, including aluminum cans, which have seen price increases of 10% to 15% this year.
The fireworks industry is also bracing for potential price increases as many fireworks are imported from China, and tariffs on these imports have fluctuated dramatically. Douglas Burda, CEO of Red Apple Fireworks, has managed to maintain current prices for consumers by stockpiling inventory. However, as the summer progresses, roadside stands may see higher prices due to the tariffs. In contrast, travelers might find some relief at the gas pump, with projections indicating a decrease in gas prices to their lowest levels since 2021. Additionally, Americans looking to purchase flags for Memorial Day will face challenges finding affordable options, as the expiration of a shipping loophole has led to increased costs for imported flags. This change is expected to shift consumer purchases back towards domestic manufacturers, such as Valley Forge Flag Company, which is already noticing a positive impact on sales as cheaper, offshore products become less accessible.
TruthLens AI Analysis
The article examines the potential impact of recent tariffs imposed by the Trump administration on consumer prices, particularly during the Memorial Day holiday. It highlights how these tariffs may affect summer staples like food, beer, and fireworks, raising concerns over increased costs for consumers. While some economists predict a general rise in prices, they note that effects may vary across different categories of goods.
Economic Implications
The piece suggests that certain items, especially perishable goods, will reflect the effects of tariffs more significantly and sooner than durable goods. This is because perishable items have a quicker turnover in the market, which means they are more likely to show price increases related to tariffs sooner. In contrast, retailers still have a substantial inventory of durable goods, which could delay the impact of new tariffs on prices for items like barbecues.
Consumer Sentiment
By focusing on the immediate impact of tariffs on popular summer products, the article aims to create awareness among consumers about the potential for increased expenses. This could lead to a perception of economic strain as families prepare for holiday gatherings. The mention of a 25% tariff on aluminum and steel, affecting beer cans, serves to underscore how deeply these tariffs can penetrate everyday purchases.
Hidden Narratives
While the article provides a clear overview of the tariff situation, it may also be glossing over the broader economic context, such as the potential long-term effects on consumer spending and business operations. The nuanced discussion about inflation rates and the mixed predictions on pricing could suggest a more complex economic landscape than what is presented.
Reliability of Information
The article appears to present factual information, drawing on expert opinions regarding the effects of tariffs. However, the focus on specific products may lead to an oversimplified view of the overall economic situation. The framing of the story could influence public perception, particularly regarding the implications of tariffs on common consumer goods.
Societal Impact
This news piece may resonate particularly with middle-class families who are planning summer activities and may feel the pinch of rising prices. It could foster a sense of frustration or concern among consumers, potentially influencing their spending habits and overall sentiment towards economic policies.
Market Reactions
The discussion surrounding tariffs has the potential to affect stock prices, especially for companies involved in consumer goods, retail, and manufacturing. Investors may react to anticipated changes in consumer behavior and costs, leading to fluctuations in stock market performance for companies that rely on imported materials.
Global Context
On a broader scale, the article touches on the implications of trade policies and tariffs on international relations and market dynamics. Tariffs can lead to retaliatory measures from other countries, which could further complicate the global economic landscape.
Regarding the use of artificial intelligence in crafting this article, it's possible that AI tools were employed to analyze data trends or consumer behavior patterns. However, the writing style appears to be human-generated, focusing on clarity and direct communication of economic issues.
In conclusion, while the article provides important insights into the impact of tariffs on consumer prices, it also raises questions about the broader economic implications and the potential for public sentiment to be influenced. Its reliability is rooted in factual reporting, yet the framing may lead to a narrow understanding of the economic complexities involved.