New York (CNN) – The steady stream of customers walking into Di Palo’s on a recent afternoon were greeted by giant cheese wheels, meat hanging from the ceiling and bottles of olive oil lined up on the shelves — a century-old array that’s at risk because of President Donald Trump’s trade wars.
Most of the products sold at the 109-year-old specialty shop in Manhattan’s Little Italy neighborhood are from the old country, and attract customers from all over. The store has lasted through two world wars and the Great Depression. But because of a Trump administration fight with the European Union, Di Palo’s customers could soon be paying up to double the price, testing their loyalty.
The Trump administration has proposed a tariff of up to 100% on $25 billion in European items. Romano, Parmesan, provolone and Gouda are all on the list. But it’s not just cheese. The tariff is proposed to hit a variety of items that pair well with cheese, as well — like wines and meats, olive oil, olives and pasta.
While Trump’s tariffs against China threaten to raise prices on an array of consumer goods, this lesser-known trade dispute has cheese lovers up in arms and cheese sellers like Lou Di Palo worried about how potential new tariffs could hurt sales.
Di Palo says the tariff could hit about 95% of the items his store sells, and he’s skeptical that customers will pay double for everything. He plans to take a hit to his profit margins rather than raise prices to cover the cost of the tariff.
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The Trump admin has proposed a tariff of up to 100% on $25 billion in European items. Romano, Parmesan and Gouda are all on the list. But it's not just cheese. The tariff is proposed to hit a variety of items like wines, meats, olive oil, olives and pasta. https://t.co/73zb8AEi4a
— Kyle Griffin (@kylegriffin1) September 7, 2019
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