Asheville, N.C., September 8, 2025
News Summary
Small businesses in Asheville are facing heightened challenges following the federal government’s removal of the de minimis rule, which allowed tariff-free imports valued under $800. This new tariff policy has led to increased costs for local entrepreneurs, prompting some to raise prices for their customers. Business owners voice concerns over the impact of these tariffs, which include a 50% tariff on Indian goods and a 15% tariff on imports from Europe, affecting various sectors from retail to agriculture. The economic strain is also impacting community celebrations, raising questions about their future viability.
Asheville, N.C. – Small businesses in Asheville are facing significant challenges after the federal government eliminated the de minimis rule, which previously allowed them to import goods valued under $800 tariff-free. This change has raised serious concerns among local business owners about the future viability of their operations.
Many Asheville entrepreneurs report they are now grappling with increased costs due to tariffs. Hector Diaz, owner of Modesto, Salsa’s, and Cafe Bomba, has noted that the elimination of the exemption has resulted in him paying double for supplies, prompting him to raise prices for his customers. Similarly, Vivian Morgani, who runs Vida by Vivian, sources around 80% of her clothing inventory from international suppliers. The increased tariffs have placed her business in a precarious position as she navigates the rising costs of imported goods.
The current tariffs are particularly impactful, with a 50% tariff on Indian goods and a 15% tariff on imports from Europe. Morgani has stressed that this policy shift has hit small businesses like hers especially hard, as they often rely on importing smaller quantities of goods. Moreover, shipping prices have significantly increased as the postal service enforces tariff collections, further burdening these businesses.
In an effort to express their concerns, local business owners recently held a news conference. This event coincided with announcements from federal officials regarding planned additional tariffs affecting approximately 60 countries. Leah Wong-Ashburn, president of Highland Brewing, reported a 17% increase in aluminum prices, which has ultimately affected their production costs by raising the prices for cans. Other business owners, like Vincent Tursi, III from Dssolvr Brewery, highlighted the pressure to produce goods domestically, a situation exacerbated by current tariff policies.
Farmers are also feeling the pinch. Mary Carroll Dodd of Red Scout Farm indicated that the rising costs due to tariffs could lead to price increases on produce by 25 to 50 cents. Additionally, Wendy Brugh from Dry Ridge Farm expressed her concerns that the inflated prices might alienate their customer base. In another sector, Benjamin Colvin, founder of Devils Foot Beverage Company, expressed worries about how tariffs on essential materials like steel and aluminum are affecting both machinery and packaging costs.
The impact of these tariffs extends even to community celebrations. For instance, the cost of fireworks for Independence Day has surged, with prices in Black Mountain more than 2.5 times higher than in 2019. This has forced the Weaverville Town Council to reconsider continuing their annual fireworks displays due to budget constraints driven by rising costs. The American Pyrotechnics Association noted that 99% of fireworks in the U.S. are produced in China, which has made the increased tariffs particularly burdensome on local celebrations.
While Asheville’s Fourth of July fireworks show has not yet seen significant price increases, local officials remain concerned about the economic repercussions of ongoing tariff policies. Discussions are ongoing regarding possible adjustments to community fireworks events as businesses and officials evaluate the long-term viability of celebrating amidst escalating costs.
Background Context
The de minimis rule was established to make it easier for small businesses to import goods without incurring excessive fees. The recent removal of this exemption has been a point of contention among entrepreneurs across key sectors in Asheville. As small businesses try to cope with rising costs, the broader implications for the local economy and community events remain a hot topic. Increased prices on goods and services could lead to shifts in consumer spending habits, further complicating the recovery and growth of small businesses in the region.
FAQ
What is the de minimis rule?
The de minimis rule allowed small businesses to import goods valued under $800 without incurring tariffs, making it easier for them to access international markets.
Why was the de minimis rule eliminated?
The federal government eliminated the rule as part of broader tariff policies, aiming to protect domestic industries. However, it disproportionately affects small businesses reliant on international imports.
How have Asheville small businesses been affected?
Local business owners report significant cost increases due to tariffs on imports. Many are forced to raise prices to cover the additional expenses associated with importing goods.
What specific tariffs are currently affecting local businesses?
Current tariffs include a 50% tariff on goods from India and a 15% tariff on imports from Europe, impacting a wide array of products, from clothing to food and beverages.
How are rising costs impacting community celebrations like fireworks shows?
Rising costs due to tariffs have led to increased prices for fireworks, placing strain on local budgets and forcing some councils to reconsider their annual celebrations, such as Independence Day fireworks displays.
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Additional Resources
- WLOS: Asheville Businesses Face Price Hikes
- New York Times: Trump Tariffs and China
- WPDE: Asheville Business Owners Concerned About Tariffs
- Mountain X: U.S. Tariffs Threaten Fireworks Shows
- Wikipedia: Tariff
- Britannica: Tariff
Author: STAFF HERE ASHEVILLE WRITER
The ASHEVILLE STAFF WRITER represents the experienced team at HEREAsheville.com, your go-to source for actionable local news and information in Asheville, Buncombe County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Asheville Bread Festival, LEAF Festival, and mountain sports tournaments at Biltmore Estate. Our coverage extends to key organizations like the Asheville Area Chamber of Commerce and Explore Asheville Convention & Visitors Bureau, plus leading businesses in hospitality and brewing that power the local economy such as the Biltmore Estate and Sierra Nevada Brewing Company. As part of the broader HERE network, including HERECharlotte.com, HEREGreensboro.com, HERERaleigh.com, and HEREOBX.com, we provide comprehensive, credible insights into North Carolina's dynamic landscape.
