{"id":5662,"date":"2025-10-17T11:24:09","date_gmt":"2025-10-17T11:24:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-pa\/5662\/"},"modified":"2025-10-17T11:24:09","modified_gmt":"2025-10-17T11:24:09","slug":"lehigh-valley-small-businesses-try-to-ride-tariff-wave-without-wiping-out","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-pa\/5662\/","title":{"rendered":"Lehigh Valley small businesses try to ride tariff wave without wiping out"},"content":{"rendered":"<p>Walk into the Knitter\u2019s Edge in Bethlehem and you immediately find yourself immersed in a colorful world.<\/p>\n<p>The store on West Broad Street bills itself as the largest yarn shop in Pennsylvania, specializing in fine yarns, along with such things as needles, hooks, books, magazines and wool wash. It offers classes for both the beginner and advanced knitter or crocheter. Co-owner Amanda Evans says customers come from all over the country, but the Knitter\u2019s Edge primarily serves enthusiasts from the Lehigh Valley, Philadelphia, New Jersey and New York.<\/p>\n<p>Like many small businesses, the Knitter\u2019s Edge has been preparing for the potential effects of tariffs on its prices. So far, several Lehigh Valley companies said they haven\u2019t faced many adverse impacts or had to pass costs on to their customers, but they continue to try to get ahead of any problems.<\/p>\n<p><a href=\"https:\/\/www.washingtonpost.com\/business\/2025\/09\/02\/de-minimis-yarn-prices-backlog\/\" rel=\"nofollow noopener\" target=\"_blank\">According to The Washington Post<\/a>, knitters and crocheters are dealing with a recent tax repeal of low-value imports by the Trump administration.<\/p>\n<p>Parcels worth less than $800 are now subject to an additional 10% to 50% levy depending on the tariff rate of the country of origin. Because of the uncertainty, several countries have suspended deliveries to the U.S. Some of them are prime exporters of yarn, such as Denmark and the United Kingdom.<\/p>\n<p>Evans said the Knitter\u2019s Edge has yet to see any major changes in prices.<\/p>\n<p>\u201cWe have been stocking up on products before prices are impacted,\u201d said Evans, who co-owns the shop with her mother, JoAnne Turcotte. \u201cLuckily, most of our vendors give notice and we have been placing large orders so we can keep prices the same through the season. Honestly, a lot of the price increases we\u2019ve seen have been in line with yearly price increases.\u201d<\/p>\n<p>Evans said many of the Knitter\u2019s Edge\u2019s vendors have absorbed costs, which also helped keep prices down.<\/p>\n<p>Other small businesses that serve the Lehigh Valley \u2014 from pretzel makers to game designers \u2014 have noticed changes in recent months, and are trying to keep up with them.<\/p>\n<p>\u201cWe\u2019ve been fairly lucky, in that the tariffs we have experienced have been pretty minimal,\u201d said Misty Skolnick, co-owner of Uncle Jerry\u2019s Pretzels with her father, Jerry, who founded the company in 1988. The pretzels are made in Lancaster County and sold at locations in the Valley, including Whole Foods Market in Lower Macungie Township.<\/p>\n<p>\u201cI think some of our labels have increased in price, our boxes have increased in price,\u201d she said. \u201cWhen we get those price increases from our suppliers, they don\u2019t necessarily indicate that they\u2019re from tariffs. So if our flour goes up a little bit \u2026 it\u2019s a little bit unclear. We did have a price increase on our chocolate, again, from tariffs or other factors such as the general rising cost of things \u2026 so it\u2019s a little bit unclear.\u201d<\/p>\n<p>So far, Skolnick said, the company has yet to pass costs to customers, though it has had to absorb a 10% increase in wheat prices.<\/p>\n<p>\u201cMy dad\u2019s and my approach is, don\u2019t buy into the hype until you get a letter from your supplier saying your pricing is changing,\u201d she said. \u201cIf you buy into the panic, you will have anxiety over things that may or may not happen. I think it\u2019s very important to be aware of what\u2019s going on and understand what\u2019s going on, but to change your business on hypotheticals, we try not to do that.\u201d<\/p>\n<p>Evans said the Knitter\u2019s Edge also gives customers domestic options, carrying several American-made products such as Appalachian Baby and Feederbook Farm.<\/p>\n<p>\u201cWe love supporting other small businesses,\u201d she said. \u201cMany of our vendors are showing new yarn lines sourced from American mills.\u201d<\/p>\n<p>In an interview with The Morning Call <a href=\"https:\/\/www.mcall.com\/2025\/02\/07\/how-could-tariffs-affect-the-lehigh-valley-its-complicated\/\" rel=\"nofollow noopener\" target=\"_blank\">earlier this year<\/a>, Lehigh University economist Ahmed Rahman said consumers will feel the effects of tariffs as companies pass the cost to them. He called the tariffs a \u201cfluid\u201d issue with frequent changes in rates and policies.<\/p>\n<p>\u201cWe sort of forget that a tariff is just another way of saying a tax, and the consumer still bears a lot of that burden of the tax,\u201d Rahman said. \u201cBut it\u2019s not a tax that you see, it\u2019s just prices that go up and it\u2019s indirectly through this. So it\u2019s an inflation tax. The government might be getting some revenue, but rest assured, it\u2019s just another way of taking money from your average citizen.\u201d<\/p>\n<p>Avi Setton and his wife, Tanya Basu, co-founded Le Fou LLC, a company that designs and sells table games. The South Whitehall Township business <a href=\"https:\/\/www.mcall.com\/2023\/08\/09\/the-worlds-full-of-picky-eaters-a-lehigh-valley-couple-making-a-game-of-it-has-crowdsourced-nearly-65000-for-it\/\" rel=\"nofollow noopener\" target=\"_blank\">has produced the card game Picky Eaters<\/a>, where players compete to feed five guests the tastiest meal. The game also has expansion packs.<\/p>\n<p>Made in China, Picky Eaters is sold online after being successfully funded via the online site Kickstarter. Le Fou has about 1,000 customers, with about 62% in the U.S.<\/p>\n<p>Setton said Le Fou is \u201cdoing well\u201d and is expanding, working on a second game called Monarch and diversifying into filmmaking. The film \u201cThe Big Break\u201d is in post production. He said the company has been working toward \u201ca big launch\u201d for Monarch, but it has been postponed.<\/p>\n<p>\u201cHopefully it will launch soon, but the industry has really taken a hit, and so we\u2019re sort of trying to wait it out and see if it\u2019s going to get any better,\u201d Setton said.<\/p>\n<p>He added that while it was hard to draw a direct line to tariffs, the Chinese company Le Fou worked with, Panda, made some strange changes.<\/p>\n<p>\u201cImmediately after tariffs were announced, the person that was our contact there for years was suddenly gone,\u201d Setton said. \u201cHe was replaced with someone new, and a couple months later, that person was replaced with someone new. The entire manufacturing process is consistently delayed for no real clear reason.\u201d<\/p>\n<p>Setton said shipping companies have raised prices up to 25%, which he thinks is an attempt to recoup lost revenue.<\/p>\n<p>\u201cI don\u2019t think people really realize how much a process like this costs for shipping,\u201d he said. It\u2019s easier to come out ahead when customers buy multiple items in a single order. The margin is a lot smaller when the order is for just the base game.<\/p>\n<p>\u201cThere\u2019s really no way for us to predict margins,\u201d said Basu, a former Morning Call reporter. \u201cAs a small business, that\u2019s very difficult. I think that ultimately that is problematic, because even if tariffs were placed and they were kept, or we had some sense of exactly what the amount would be, that would be something we could work with. It\u2019s changing so often and with such variants, that it\u2019s very difficult for us to be able to have that sense of stability.\u201d<\/p>\n<p>Skolnick said small businesses have to make hard decisions about keeping steady profits or alienating customers.<\/p>\n<p>\u201cYou just have to keep pushing forward,\u201d she said. \u201cIt\u2019s always concerning to think about your product increasing in price for your customers, because ultimately that affects sales. So it\u2019s not that we are oblivious or turning a blind eye to it. We hate raising prices. We don\u2019t want people to be priced out of enjoying our product.\u201d<\/p>\n<p>Morning Call reporter Evan Jones can be reached at ejones@mcall.com.<\/p>\n<p>Originally Published: October 17, 2025 at 7:00 AM EDT<\/p>\n","protected":false},"excerpt":{"rendered":"Walk into the Knitter\u2019s Edge in Bethlehem and you immediately find yourself immersed in a colorful world. 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