By supplychainreport
Businesses across Pittsburgh are facing significant challenges as new U.S. tariff policies alter the cost of goods and disrupt established supply chains. From local breweries to technology companies, the uncertainty surrounding trade regulations is beginning to resemble the instability experienced during the pandemic, some business leaders say.
Matt Katase, co-founder of Brew Gentlemen, a craft brewery in Braddock, likened the current situation to previous supply shocks. “So many things are getting disrupted so quickly,” he said. The brewery’s chief operating officer, Alaina Webber, noted that for the first time in the company’s nearly 15-year history, suppliers are sending notices of steep price hikes—sometimes exceeding 100% on existing orders.
The brewery is not alone. Tariffs of 10% on general imports, 25% on materials like steel and aluminum, and up to 145% on select goods are affecting businesses throughout the region. Brew Gentlemen, for example, is currently negotiating with a supplier over beer tap handles from Asia that are being held at customs due to pricing concerns.
The changes come at a time when many small businesses had hoped for a return to pre-pandemic normalcy. However, the costs of core inputs such as hops from New Zealand, malt from Canada, and materials for traditional brews from Germany are now fluctuating unpredictably.
Other sectors are also adjusting. Joy Lu, manager of Lotus Food, an Asian supermarket, has already raised prices on several items due to rising import costs. “Some fresh noodles have gone from $6.99 to $8.49,” she said. While dry goods are buffered by existing inventory, one supplier has started rationing orders to five cases per customer.
In Pittsburgh’s Strip District, Pennsylvania Macaroni Company owner Bill Sunseri confirmed that price increases are already arriving ahead of potential reciprocal tariffs scheduled to take effect after a 90-day review period ends in July. Sunseri, however, believes the situation may resolve through negotiation.
While some industry advocates see tariffs as a mechanism to strengthen domestic production, others warn of the broader economic risks. Tom Croft, executive director of the Steel Valley Authority, noted widespread uncertainty among manufacturers. “Prices and the supply chain are the big concerns. People are comparing it to the Covid shutdown,” he said.
At Carnegie Mellon University, economics professor Lee Branstetter echoed concerns about investment slowdowns caused by policy unpredictability. “When businesses don’t know whether tariffs will be 60% or 5%, they delay decisions. That can lead to a significant slowdown in investment and hiring,” he explained.
High-tech firms like Astrobotic, which builds lunar landers for NASA, are also monitoring developments closely, even if their exposure to tariff-related costs is limited. CEO John Thornton said the company is watching government funding decisions that could impact space-related programs.
Amid these uncertainties, there is currently no clear timeline for resolution. While administration officials have indicated that new trade deals are in the works, businesses continue to operate in an unpredictable pricing environment, forcing many to reevaluate their supply chain strategies in real time.
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