Small Business Owners React to Supreme Court’s Tariff Decision
Small business proprietors, including Melkon Khosrovian of Los Angeles’s Greenbar Distillery, are adopting a cautious stance following the Supreme Court’s rejection of President Donald Trump’s significant tariffs. Many are still feeling the financial pinch from a challenging year and aren’t particularly hopeful about receiving rebate checks anytime soon.
“Honestly, I’m not very optimistic about getting any money back or avoiding the same duties in the future,” Khosrovian expressed, reflecting a common sentiment among his peers. “I really doubt it.”
Last year, various tariffs increased the costs of items essential to beverage producers, such as glass bottles from China, specialty spices from India, and coffee from Brazil, which are used in creating products like canned espresso martinis.
Despite these rising costs, Khosrovian chose not to increase prices, even as the tariffs cut into the distillery’s profit margins by approximately 20%. The distillery, which was co-founded in 2004, aims to offer classic spirits and unique canned cocktails.
In an effort to manage long-term expenses, Khosrovian invested $400,000 in equipment to automate labor-intensive tasks like bottling. This upgrade is expected to arrive soon, but it also led to the difficult decision to lay off three employees from a workforce of 15.
The uncertainty of the future looms large. With the Supreme Court’s ruling in a 6-3 decision regarding Trump’s tariffs, Khosrovian and countless others are left contemplating their next steps. “It’s unfortunate that we’ve had to let staff go. That’s not the outcome we wished for regarding these tariffs,” he noted. “Now, we’re having to import equipment to cut jobs in our own country. Who really wants that?”
The court’s decision doesn’t clarify whether the government will be required to refund any tariff revenue collected, and President Trump remains committed to a robust tariff strategy.
Regardless of how things unfold, Khosrovian mentioned that his company will persist in its automation plans, even if it means further reducing jobs.
