NEW YORK — The shelves at Economy Candy are packed with sweet treats from across the globe. From German gummies to Spanish lollipops, Japanese chocolates, and various American candies, the Lower East Side shop offers a sugary paradise for connoisseurs. Owner Mitchell Cohen stands betwixt vivid jellybeans and rare Kit Kats, considering how the sweeping tariffs recently declared by President Donald Trump affect more than 2,000 items in his store. “I think all of them,” Cohen predicts amid the potential price hikes.
Virtually no sector of the American economy remains unaffected by these broad tariffs, influencing even small businesses like Economy Candy. Just as Cohen was recovering from inflation-induced price spikes, the looming tariffs cast a shadow over his ambitions to maintain affordability. As he attempts to keep prices reasonable, he worries they will inevitably climb higher.
Economy Candy is a nostalgic journey through time, adorned with vintage signage and a green-and-white striped awning. Inside, the aroma of candy mingles with oldies music, and patrons peruse assortments of retro snacks they may have forgotten. This small establishment is part of a $54 billion candy industry, which had already felt cost pressures before tariffs were introduced.
Candy prices have climbed significantly over the years, impacted by ingredient costs. Consumer Price Index data shows candy and gum prices have risen about 34% since five years ago and 89% since 2005. The National Confectioners Association notes that price is now the primary factor in candy purchases, overshadowing consumer mood.
Around a third of Economy Candy’s offerings are imported, with German Haribo varieties, French and Austrian gummies, Swiss Milka bars, Italian candies, and Japanese Kit Kats among them. Tariffs weighed heavily on many of these products, with Snickers bars from India now facing 26% tariffs and those from Portugal under a 20% EU levy.
American staples aren’t spared either. Snickers produced in Texas contain ingredients sourced globally, including chocolate from Guyana and sugar from Brazil. Their packaging comes from Canada, and all components are now subject to varying tariffs.
Economics professor Andreas Waldkirch from Colby College highlights how global supply chains inflate costs even for seemingly simple local products. Imports influence U.S. candies like Nerds, Sugar Babies, and Smarties, showcased prominently when you enter Economy Candy.
Cohen’s family has run the store for generations, and he recalls its transformation from a shoe repair shop during the Great Depression to a candy haven. As a child, Cohen enjoyed his first haircut there and worked behind its counter. As candy prices have increased over the years, Cohen strives to present affordability at his store.
Items on the centerpiece table, which used to cost 59 cents, now sell for $1.59. Despite wanting to keep prices low to maintain the “economy” in Economy Candy, he faces unavoidable challenges. “When your margins are coming down and your dollar doesn’t go as far at the end of the day, you really start to feel it,” he remarks.
The effects of tariffs, extending beyond expensive goods, profoundly impact small-dollar items and their sellers. Cohen’s store, once thriving, has had to pivot before, adapting in the aftermath of the September 11 attacks and the pandemic. Now, with potential tariff effects on the horizon, Cohen isn’t certain about the next steps, particularly concerning international sales amid complex regulations.
If fully implemented, U.S. tariffs could reach nearly 25%, marking a century high reminiscent of those exacerbating the Great Depression. President Trump claimed the tariffs would “liberate” the country from foreign dominance, asserting it as positive news for the U.S. Yet, Cohen questions how such measures benefit businesses like his, reliant on raw materials not native to the United States.
Recently, a French supplier informed Cohen of an immediate 5% surcharge due to tariffs but hoped for a swift resolution. Despite these challenges, Cohen endeavors to make Economy Candy a joyous retreat into the past. “You travel back to a time when nothing mattered,” Cohen shares, aiming for visitors to escape their worries, even amid economic uncertainties.