President Donald Trump’s sweeping tariffs of 10% on all imports and higher rates on key trading partners, such as China (34%) and the European Union (20%), has sparked concerns across Louisiana industries. Louisiana Restaurant Association President Stan Harris says it could cost more to eat out.
“If they remain over the longer term, we do expect to see higher costs that could result in increased menu costs for guests, because the expense of running the business is going to be higher, there’s no question about it,” Harris said.
Economists are concerned the tariffs could slow the U.S. economy, and Harris says the restaurant industry is bracing for increased costs for essential goods.
“We expect it’s going to have an impact to our members across a wide range of items. Some of the increases are going to occur more quickly, others are going to be seen when they replace inventory or replace equipment,” Harris explained.
Harris says with the potential of costs going up, low-margin profitable businesses like restaurants like will have to do some belt-tightening.
“It makes it even harder to turn a profit and make sure you’re taking care of your guests, make sure you’re taking care of your staff, and keeping your facilities up to date. It’s going to definitely be a stressor for a period of time,” Harris said.
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