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(FOX 2) – Abe Mroue admits, if he didn’t have loyal employees who were willing to stick out the rough times, he would already be closed.<\/p>\n
That’s because the Coney Island owner in Southfield has been hammered by economic winds beyond his control. Tariffs deployed by President Donald Trump have sent prices high, forcing Mroue to spend more on produce and raise prices.<\/p>\n
Meanwhile, customers who are battling the same headwinds aren’t spending as much, hitting small businesses like Mroue’s even more.<\/p>\n
Local perspective:<\/p>\n
Providence Coney Island is located on Nine Mile, leveraging the popular brand to draw in customers looking for the same coney dogs and iconic food Metro Detroit is known for. \u00a0<\/p>\n
But its owner is having a harder time keeping afloat as larger influences over the economy dictate his business.<\/p>\n
“It\u2019s going to be passed on to every consumer that\u2019s out there and that\u2019s going to hurt,” he said. “Tomatoes went up sky-high and now you got lettuce that’s not even worth anything, that’s at $50 dollars, which is terrible. The meat – the tariff hit that too.”<\/p>\n
It’s also a problem for Michigan’s biggest business sector: the auto industry.<\/p>\n
“It\u2019s been a roller coaster because the tariffs have been on, they\u2019ve been off, they\u2019ve been high. They lowered, so again, we\u2019re still in a state of flux,” said George Glassman of the Glassman Automotive Group.<\/p>\n
The increase in vehicle prices thanks to tariffs on Canada and Mexico have made purchasing a car more expensive.\u00a0<\/p>\n
With Trump promising a 100% tariff on chip and semiconductor imports – unless they’re made in the U.S. – auto components will continue to drive up the price.<\/p>\n
Zoom Out:<\/p>\n
A political science professor at Oakland University sees no justification for the tariffs.<\/p>\n
“I think none of this was necessary. None of this had to happen,” said David Dulio at Oakland University. “We\u2019re having this trade war here that is entirely initiated by us, that’s going to hurt our consumers and our business and it was completely unnecessary.”<\/p>\n
As consumers make decisions based on affordability and businesses try to keep prices low, many wonder if the tariffs will provide any route for both sides of the trade game.<\/p>\n
“Well, the good could be, at some point in time, more manufacturing here in the states, which would assist in unemployment, but that is the end game,” said Glassman. “It’s nothing that’s going to happen overnight.”<\/p>\n
That means the slowdown within the economy could extend beyond the short-term pain that consumers are currently experiencing.\u00a0<\/p>\n
“I think people are already seeing the effect on their shopping cart already,” said Dulio.<\/p>\n
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