(NEW YORK) — Alphabet’s Google illegally dominated two markets for online advertising technology, according to a federal judge.
Judge Leonie Brinkema of the U.S. District Court for the Eastern District of Virginia said in a ruling Thursday that Google had broken the law to build its dominance over the largely invisible system of technology that places advertisements on pages across the web.
“Plaintiffs have proven that Google has willfully engaged in a series of anticompetitive acts to acquire and maintain monopoly power in the publisher ad server and ad exchange markets for open-web display advertising,” the judge wrote in his ruling. “For over a decade, Google has tied its publisher ad server and ad exchange together through contractual policies and technological integration, which enabled the company to establish and protect its monopoly power in these two markets.”
The Department of Justice had sued Alphabet claiming Google had a monopoly in ad technology that allowed the company to charge higher prices and take a bigger portion of each sale. The Justice Department has said Google should have to sell off at least its Google Ad Manager, which includes the company’s publisher ad server and its ad exchange.
“We won half of this case and we will appeal the other half,” Lee-Anne Mulholland, Google’s vice president for regulatory affairs, said in a statement. “The Court found that our advertiser tools and our acquisitions, such as DoubleClick, don’t harm competition. We disagree with the Court’s decision regarding our publisher tools. Publishers have many options and they choose Google because our ad tech tools are simple, affordable and effective.”
ABC News has reached out to Alphabet for comment.
Google is now facing the possibility of two different U.S. courts ordering it to sell assets or change its business practices. A trial will be held this April in Washington on the DOJ’s request to make Google sell its Chrome browser and take other measures to end its dominance in online search.
This is a developing story. Please check back for updates.
(WASHINGTON) — President Donald Trump on Thursday sharply criticized Federal Reserve Chair Jerome Powell, urging the central bank to lower interest rates and saying Powell’s “termination cannot come soon enough.”
It was not clear whether Trump’s comments indicated a desire to remove Powell from his position or an eagerness for the completion of Powell’s term as Fed chair in 2026. The Fed is an independent government agency established by Congress.
The remarks came a day after Powell voiced alarm about Trump’s tariffs policy, saying it would likely hike inflation and slow economic growth. Powell indicated that the Fed may approach interest rates with restraint as policymakers observe the economic effects of Trump’s tariffs.
“Jerome Powell of the Fed, who is always TOO LATE AND WRONG, yesterday issued a report which was another, and typical, complete “mess!” Trump said Thursday morning in a post on Truth Social.
Powell should “certainly lower” interest rates, Trump added.
Since Trump took office he has criticized Powell on multiple occasions, despite a longstanding norm of political independence at the central bank. The sentiment echoes repeated criticism of Powell that Trump voiced during his first term in office.
On Wednesday, Powell raised the possibility of what economists call “stagflation,” which is when inflation rises and the economy slows.
If the Fed raises interest rates as a means of protecting against tariff-induced inflation under such a scenario, it risks stifling borrowing and slowing the economy further, experts previously told ABC News.
On the other hand, experts said, if the Fed lowers rates to stimulate the economy in the face of a potential slowdown, it threatens to boost spending and worsen inflation.
Last month, Trump urged the central bank to reduce interest rates, hours after it chose to leave borrowing rates unchanged. In January, Trump also advocated for interest-rate cuts in response to what he described as the prospect of lower oil prices.
In November, days after Trump’s election victory, Powell struck a defiant tone when asked whether he would resign from his position if Trump asked him to.
“No,” Powell said, pausing to let the one-word answer register with the reporters assembled at a press conference at the Fed headquarters, blocks away from the White House.
When asked whether Trump could fire or demote him, Powell responded: “Not permitted under the law.”
Powell has repeatedly affirmed the Fed’s political independence. During a press conference at Fed headquarters last month, Powell was asked again about threats to the agency’s political independence.
“I did answer that question in this very room some time ago, and I have no desire to change that answer and have nothing new for you on that today,” Powell said.
The Federal Reserve Act, which founded the central bank in 1913, granted the central bank a measure of independence from the White House.
Federal law allows the president to remove a Federal Reserve governor, including the Fed chair, “for cause.”
Experts who previously spoke to ABC News acknowledged that some legal ambiguity surrounds what type of conduct warrants sufficient cause for removal, but they said a policy dispute is unlikely to meet such a standard.
(WASHINGTON) — Election denier and MyPillow CEO Mike Lindell continues to refuse to pay more than $50,000 in sanctions he has been ordered to pay to voting software company Smartmatic over “frivolous” election claims — alleging he’s left with no money after numerous legal battles.
“I’m in ruins,” a teary Lindell said through a Zoom screen during a motion hearing in the U.S. District Court in Washington on Wednesday, pleading to Judge Carl Nichols to allow him to wait until after the final judgement comes out to make any payment in the case, which he has already lost.
Last month, Smartmatic filed a motion to hold Lindell in contempt, alleging the MyPillow CEO has been dodging his court-ordered payment of $56,369 to Smartmatic for months.
Lindell, however, insisted that he does not have the means to pay the amount due to various financial difficulties he has suffered over the last few years due to what he again claimed was “lawfare” waged against him for trying to “secure the election.”
“I borrowed everything I can. Nobody will lend me any money anymore,” Lindell claimed. “I can’t turn back time … but I will tell you, I don’t have any money.”
Lindell claimed he was recently forced to lay off hundreds of MyPillow employees, lost multiple MyPillow warehouse units over the past two years and even owes millions of dollars to the IRS for what he described as a COVID-era employee retention credit.
He claimed he has “nothing” except for two houses, which he claimed are in the process of being liquidated, and a truck.
He even claimed he can no longer adhere to a previously proposed plan of making monthly installments of $5,000.
After listening through Lindell’s plight, Nichols acknowledged that these claims are “non-verifiable representation” at the moment and gave Lindell until Friday to file under seal financial statements and other documents to prove his claims.
“I have nothing to hide,” Lindell said as he agreed to do so and added he wants Smartmatic to see the financial situation he’s in as well.
Smartmatic’s attorney said his client would prefer to see the payment made in a lump sum as soon as possible but acknowledged he would respect the judge’s ruling.
(WASHINGTON) — Federal Reserve Chair Jerome Powell said Wednesday that he expects President Donald Trump’s tariffs policy to cause higher inflation and slower economic growth, complicating potential central bank efforts to ease the fallout.
“The level of the tariff increases announced so far is significantly larger than anticipated. The same is likely to be true of the economic effects, which will include higher inflation and slower growth,” Powell told the audience at the Economic Club of Chicago.
Powell’s remarks immediately sent stocks lower as investors digested the top central banker’s concern about the tariffs.
Within minutes, the Dow Jones Industrial Average fell 690 points, or 1.7%, more than tripling losses suffered over the course of the day before Powell’s comments. At the close of trading, the Dow dropped 1.7%.
The S&P 500 dropped 2.2% at market close, while the tech-heavy Nasdaq plunged 3%. Both indexes deepened losses suffered earlier in the day.
Stocks had fallen in early trading on Wednesday after chipmaker Nvidia disclosed it was recording a $5.5 billion charge in accordance with a new Trump administration restriction on exports to China.
Wednesday’s address marked Powell’s first public remarks since Trump last week paused his so-called “reciprocal tariffs” on most countries for 90 days. Stocks soared minutes after Trump’s announcement, recovering much of the losses suffered in the aftermath of the “Liberation Day” tariffs start a week earlier. It amounted to one of the most volatile weeks in the history of Wall Street.
“Markets are struggling with a lot of uncertainty and that means volatility,” Powell said on Wednesday. Still, he added, the volatility reflected the significance of the policy changes, rather than abnormal behavior in the markets.
“They’re functioning just about as you’d expect them to function,” Powell said.
At the same time Trump paused some tariffs last week, he also increased tariffs on China, bringing levies on Chinese goods to a cumulative level of 145%. In response, China hiked tariffs on U.S. goods to 125%, escalating a trade war between the world’s two largest economies.
Powell said earlier this month that he expected Trump’s tariff policy would hike prices and slow economic growth, while noting that key indicators “still show a solid economy.”
Policy changes implemented by the White House have contributed to a “highly uncertain outlook,” Powell said.
Last month, the Fed opted to hold interest rates steady, even as the central bank said it expected higher inflation and slower economic growth than it had forecast in December. The Fed will announce its next interest-rate decision on May 7.
Powell on Wednesday indicated that the Fed may approach interest rates with restraint as policymakers observe the economic effects of Trump’s tariffs.
“The U.S. economy is still in a solid position,” Powell said. “For the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance.”
(NEW YORK) — U.S. stocks closed down slightly on Tuesday as investors weathered ongoing uncertainty about President Donald Trump’s tariff plans.
The Dow Jones Industrial Average ticked down 156 points, or 0.3%, at the close of trading. The S&P 500 fell 0.1%, while the tech-heavy Nasdaq declined 0.05%.
The U.S. has received about 15 proposals for trade agreements, White House Press Secretary Karoline Leavitt told reporters on Tuesday. Trump issued a 90-day pause of so-called “reciprocal tariffs” last week, saying he plans to negotiate trade agreements with roughly 75 countries targeted by the levies.
The remarks from Leavitt came a day after Trump signaled a willingness to ease auto tariffs, while saying he plans to impose new tariffs on computer chips and pharmaceuticals
Trump’s administration said on Friday that many consumer electronics would be exempt from his wide-ranging reciprocal tariffs, an announcement that sent global markets higher on Monday.
Trump on Monday also indicated a willingness to further ease tariffs, saying he is looking to “help some of the car companies” in the aftermath of 25% auto levies.
The White House also took steps on Monday that may result in new tariffs on pharmaceuticals and semiconductors, posting notices online about national security investigations into those products.
Markets in Europe also traded higher midday on Tuesday, after European Commission President Ursula von der Leyen’s 90-day pause on planned tariff countermeasures went into effect.
Germany’s DAX climbed about 1.21% midday and Britain’s FTSE 100 traded up about 0.90% midday.
South Korea’s KOSPI index closed up 0.88% on Tuesday, posting its second day of gains. And Tokyo’s Nikkei 225 climbed 0.84%.
Markets in China, where Trump’s reciprocal tariffs are still in place, showed less enthusiasm. Shanghai’s Composite Index rose just 0.15% and Hong Kong’s Hang Seng Index climbed 0.23%.
ABC News’ David Brennan contributed to this report.
(NEW YORK) — U.S. stocks were little changed in early trading on Tuesday, a day after President Donald Trump signaled a willingness to ease some tariffs but also impose new ones.
The Dow Jones Industrial Average ticked up 52 points, or 0.1%. The S&P 500 climbed 0.2%, while the tech-heavy Nasdaq increased 0.05%.
Trump’s administration said on Friday that many consumer electronics would be exempt from his wide-ranging reciprocal tariffs, an announcement that sent global markets higher on Monday.
Trump on Monday also signaled a willingness to further ease tariffs, saying he is looking to “help some of the car companies” in the aftermath of 25% auto levies.
The White House also took steps on Monday that may result in new tariffs on pharmaceuticals and semiconductors, posting notices online about national security investigations into those products.
Markets in Europe also traded higher midday on Tuesday, after European Commission President Ursula von der Leyen’s 90-day pause on planned tariff countermeasures went into effect.
Germany’s DAX climbed about 1.21% midday and Britain’s FTSE 100 traded up about 0.90% midday.
South Korea’s KOSPI index closed up 0.88% on Tuesday, posting its second day of gains. And Tokyo’s Nikkei 225 climbed 0.84%.
Markets in China, where Trump’s reciprocal tariffs are still in place, showed less enthusiasm. Shanghai’s Composite Index rose just 0.15% and Hong Kong’s Hang Seng Index climbed 0.23%.
ABC News’ David Brennan contributed to this report.
(WASHINGTON) — Lawyers for Meta told a federal judge on Monday that the social media company founded by billionaire Mark Zuckerberg is not a monopoly, countering a landmark lawsuit brought against it by the Federal Trade Commission accusing the tech giant of gobbling up its competitors to corner the market.
“Meta has no Monopoly,” Mark Hansen, an attorney for the company argued in U.S. District Court in Washington, D.C., as the trial got underway.
The case marks the first significant opportunity for President Donald Trump’s administration to follow through on the president’s campaign promise to take on Big Tech.
In court filings, the FTC argued that Meta purposefully and illegally undercut smaller rivals to “neutralize perceived competitive threats.”
The FTC lawsuit, originally filed in 2020 when Meta went by Facebook, alleges that the company bought Instagram and WhatsApp to establish an illegal monopoly.
“Unable to maintain its monopoly by fairly competing, the company’s executives addressed the existential threat by buying up new innovators that were succeeding where Facebook failed,” the FTC’s attorneys wrote in the court documents.
FTC lawyers called Zuckerberg as their first witness on Monday. Zuckerberg faced questions about his company’s inner workings and how it has evolved in recent years to respond to competition from other social media platforms.
If Meta loses, the lawsuit could force a dismantling of the company by forcing it to break off the two apps, Instagram and WhatsApp, it purchased over a decade ago.
Meta’s legal team argued in court that the case centers on broader “industry issues” — not just issues concerning Meta. They claimed that many of Meta’s innovations and acquisitions were in response to moves by “peer” tech companies.
During Monday’s court proceedings, Meta’s lawyers said the company has been “pro-competitive,” arguing the government “doesn’t want to talk about” TikTok, a rival that they contend “rocked the world,” and sent Meta into “a crisis.”
In opening statements, Meta’s lawyers claimed that “consumer welfare” is not the central issue in the case.
The company said it had to adapt after TikTok’s explosive growth during the pandemic.
“Meta didn’t even have a short-form video feature” when TikTok was launched in 2016 by the Chinese technology company ByteDance, Meta’s lawyers argued.
Meta’s legal team added that many creators were initially skeptical of Instagram Reels, a product launched in response to TikTok, because short-form videos tended to monetize significantly less than longer traditional videos.
The social media company’s lawyers pointed to other platforms adapting short-form videos like YouTube shorts, Snapchat, X (formerly known as Twitter) and LinkedIn as examples of similar responses to TikTok’s success. Meta, they said, had to “move with the times or end up like MySpace,” the now-defunct social media site that dominated the industry two decades ago.
Meta’s lawyers also cited a 2021 Meta outage, during which users turned to other platforms. TikTok saw an 11% increase in users and YouTube gained 8%, Meta’s lawyers argued, presenting the figures as proof that competitors have substantial influence. They added that Meta accounts for less than 20% of total time spent on social media platforms.
Much of Zuckerberg’s early testimony Monday focused on the Facebook News Feed and how users interact with friends, something he said has shifted as people moved from desktop computers to mobile devices.
He acknowledged that the emphasis on friendship had declined as users began to share content differently. He noted that by 2018, there was growing discourse over whether time spent on social media was beneficial.
“The friend part has gone down quite a bit, it’s still something we care about,” Zuckerberg testified. However, he added that friendship is now “one part of what we do.”
Later Monday, the FTC lawyers questioned Zuckerberg about his company’s acquisition of Instagram. The deal occurred after Facebook’s own camera app, Snap, failed to compete, the government’s lawyers noted.
In emails from February 2012 read in court by the FTC lawyers, Zuckerburg wrote, “Snap might be a good first step but we’d be very behind in both functionality and brand core use cases of Facebook will develop in the mobile world, which is really scary and we might want to consider paying a lot of money for this.”
When questioned about the 2012 Instagram purchase, Zuckerberg said his company had just gone public and had the capital. He characterized the email as an example of his desire to do a build-versus-buy analysis.
When asked about his “scary” remark, Zuckerberg testified that he “read this as trying to analyze, I think, where the value is with Instagram.”
“Some of the stuff is simply hypothetical, that this could potentially be scary. I’m not sure if I read this as I was really scared at the time,” Zuckerberg said.
Zuckerberg said that when he wrote the email, he was thinking about whether it was the best approach to buy Instagram.
“By this point, I was leaning toward we should buy them if we could,” he testified.
Shortly after the conversation in February 2012, Meta bought Instagram in April for $1 billion.
In a statement released on Monday, Meta said, “The evidence at trial will show what every 17-year-old in the world knows: Instagram, Facebook and WhatsApp compete with Chinese-owned TikTok, YouTube, X, iMessage and many others.”
The company added, “More than 10 years after the FTC reviewed and cleared our acquisitions, the Commission’s action in this case sends the message that no deal is ever truly final. Regulators should be supporting American innovation, rather than seeking to break up a great American company and further advantaging China on critical issues like AI.”
Zuckerberg is expected to return to the witness stand on Tuesday.
(NEW YORK) — Major stock markets in Asia and Europe rose in Monday trading following the U.S. announcement that key consumer electronics would be temporarily exempted from President Donald Trump’s reciprocal tariffs.
Hong Kong’s Hang Seng index led the regional gains, closing 2.4% up with the Hang Seng Tech Index up more than 2%.
On the mainland, Shanghai’s Composite Index rose 0.76% and Shenzen’s Component Index rose 0.51%.
In Japan, the Nikkei 225 in Tokyo rose 1.18% while the broader Topix index rose nearly 0.9%.
Elsewhere, South Korea’s Kospi index grew 0.95% and Australia’s S&P/ASX 200 closed 1.34% higher. Taiwan’s Taeix index slipped by 0.08%.
Tech stocks performed particularly well. Tokyo Electron grew 2%, Advantest — a testing equipment maker — rose 5.4% and South Korea’s Samsung Electronics gained 1.4%.
In Europe, the pan-continental STOXX 600 rose 1.8% on opening. Germany’s DAX index rose more than 2%, France’s CAC 40 rose 1.9% and Britain’s FTSE 100 rose 1.95%.
U.S. futures were also trending up. Dow Jones futures were up 0.71% as of Monday morning, S&P 500 futures were up 1.19% and Nasdaq futures up 1.57%.
Smartphones, computers, flat panel TV displays, memory chips, semiconductor-based storage devices and other electronics are among the items excluded from the Trump administration’s reciprocal tariffs, according to a bulletin from the U.S. Customs and Border Protection published Friday night.
The news suggested possible relief for tech companies concerned by Trump’s 145% tariffs on all goods from China. But the president and his economic advisers stressed over the weekend that any reprieve would be temporary, with specific tariffs to be imposed on goods put under a new national security classification.
Trump posted to Truth Social on Sunday saying there was “was no Tariff ‘exemption’ announced on Friday” and that semiconductor tariffs will “just be moving to a different Tariff ‘bucket.'”
“NOBODY is getting ‘off the hook’ for the unfair Trade Balances, and Non Monetary Tariff Barriers, that other Countries have used against us, especially not China which, by far, treats us the worst!” Trump wrote.
“We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations,” Trump added.
Trump did not push back Saturday night when a reporter asked for details on “exemptions.”
“I’ll give you that answer on Monday. We’ll be very specific on Monday,” Trump said. “We’re taking in a lot of money. As a country, we’re taking in a lot of money.”
ABC News’ Selina Wang, Fritz Farrow and Joe Simonetti contributed to this report.
(NEW YORK) — U.S. stocks climbed on Friday, shrugging off new Chinese tariffs on American goods that intensified a trade war between the two largest economies in the world.
The Dow Jones Industrial Average jumped 440 points, or 1.1%, while the S&P 500 surged 1.4%. The tech-heavy Nasdaq increased 1.6%.
Meanwhile, a selloff of 10-year Treasuries sent yields climbing to 4.46%. That figure neared a recent high attained hours before President Donald Trump announced on Wednesday a 90-day delay of so-called “reciprocal tariffs” for most U.S. trade partners.
A University of Michigan survey of shopper sentiment on Friday showed consumer attitudes fell more than expected in April, dropping to a level lower than any recorded during the Great Recession.
The market turmoil Friday morning came after China issued a 125% U.S. tariff, though Beijing said it would not increase tariffs further. The move came in response to a 145% tariff on Chinese goods announced by Trump earlier this week.
Larry Fink, the CEO of financial firm BlackRock, which manages about $11.5 trillion in assets, warned that the U.S. economy is poised for a downturn.
“I think we’re very close, if not in, a recession now,” Fink told CNBC.
In a social media post on Friday, Trump signaled confidence.
“We are doing really well on our TARIFF POLICY. Very exciting for America, and the World!!! It is moving along quickly,” Trump said on Truth Social.
U.S. markets closed Thursday with notable losses, a reversal from the enthusiasm unleashed by Trump’s Wednesday decision to pause some tariffs.
Several Asian stock markets slid back into the red on Friday morning, reversing gains made on Thursday amid continued uncertainty as to whether nations would be able to secure deals with Trump to avoid long-term tariffs — and as China announced new retaliatory tariffs on American goods.
Tokyo’s Nikkei 225 index slipped 3.8% and Japan’s broader TOPIX index fell 3.5%. In South Korea, the KOSPI dropped nearly 1% and Australia’s S&P/ASX 200 dipped 0.95%.
In China, markets fluctuated as investors responded to the White House clarifying that the level of tariffs on Chinese goods is now 145% — not 125% as previously believed.
Hong Kong’s Hang Seng index rose 2%, Shanghai’s Composite Index rose 0.6% and Shenzen’s Component Index rose 1.2%, with investors buoyed by Beijing’s announcement of stimulus measures to bolster the economy against the escalating American tariffs.
Other prominent Asia indices in the green on Friday included Taiwan’s Taiex index up 2.7% and India’s NIFTY 50 up 1.9%.
European markets appeared hesitant upon opening and slipped after China announced it would increase tariffs on U.S. goods from 84% to 125% from Saturday.
On Thursday, Trump again hinted at the resumption of his sweeping tariffs.
“If we can’t make the deal we want to make or we have to make or that’s, you know, good for both parties — it’s got to be good for both parties — then we go back to where we were,” Trump said.
When asked if he would extend the 90-day pause, the president responded, “We’ll have to see what happens at the time.”
Marcus Wells, a barista at Float Coffee in Hollywood, Calif., speaks, April 8, 2025, about the impact the global tariff war will have on his business. KABC
(NEW YORK) — Americans’ love affair with coffee and chocolate could soon get a lot more expensive.
Baristas and confectioners say the beans they need to make their products are mostly grown in countries targeted by the Trump administration’s tariffs.
According to the U.S. Department of Agriculture, the United States is the world’s second-largest importer of coffee. In a reflection of how much Americans love chocolate, U.S. businesses import about $5 billion worth of cocoa beans a year, according to the USDA.
Some owners of small businesses dealing in coffee and confections say they fear the tariffs imposed by President Donald Trump will leave them with no choice but to pass the added costs on to their customers.
“So while the tariffs are being imposed to try to up the production of goods in the United States, that’s a good we just simply cannot make in the United States,” Marcus Wells, a barista at Float Coffee in Hollywood, California, told ABC Los Angeles Station KABC of the coffee beans he imports from Central and South American countries that are currently are under a 10% baseline tariff imposed by the Trump administration.
Trump announced on Wednesday that he was pausing reciprocal tariffs on most countries for 90 days, except China.
Wells said the baseline tariff of 10% will likely translate to a 10% increase in a cup of coffee at his shop.
“We’re always looking for ways to maintain customers and it’s hard to do that when you’re constantly having to raise prices in order to keep your business open,” Wells said.
Cason Crane, CEO of Explorer Cold Brew, a company that sells bottled and canned coffee at stores across the nation, told ABC News that he hopes the 90-day pause will allow enough time for countries to negotiate deals with the White House to stave off the higher reciprocal tariffs.
“Coffee has actually been exempt from tariffs in the United States since the 1800s. So, my hope is that, with this 90-day pause, while it’s not ideal to still have 10% tariffs, that the administration can negotiate some more targeted deals that recognize things like the United States cannot grow coffee outside of Hawaii or Puerto Rico, which account for half a percent of worldwide coffee production,” Crane said.
Before Trump put a pause on reciprocal tariffs on Wednesday, Bill Ackman, the billionaire CEO of the hedge fund Pershing Square Capital Management and a supporter of Trump, posted a lengthy message on social media, saying, “If the president doesn’t pause the effects of the tariffs soon, many small businesses will go bankrupt.”
In his post, Ackman shared an email he received from Crane, whose company he has invested in. In the email, Crane said the price of glass bottles he sources from China for his coffee will go up 50%, while chai sourced from India will increase by 26% and coffee imported from Ethiopia, Peru and Canada will climb by 10%.
“Will my clients tolerate a near doubling of their contract costs overnight, or will they expect me to absorb the increases my vendors are already threatening?” Crane wrote in the email. “If clients resist price hikes and my employees demand higher wages to offset their rising cost of living, we end up in a lose-lose scenario — no spending and no jobs.”
On Thursday, Crane told ABC News that he likely won’t be able to raise prices.
“Small businesses have way fewer options than big businesses. We don’t really have the capability to raise our prices,” Crane said. “Think about going to a farmers market; you’re already paying a little bit more. So, we’re already priced at the top range and we don’t really have the power to negotiate with our suppliers like the big businesses do. So the best I can do is keep holding on and hope for a better policy, and urge people to look out for those small businesses.”
New Hampshire chocolatier Richard Tango-Lowy, owner of Dancing Lion Chocolate in Manchester, said he imports some of his cocoa beans from Vietnam, which Trump says faces a 46% reciprocal tariff if it doesn’t bargain with the White House. Tango-Lowy said he also gets beans from Bolivia, which is subject to the baseline 10% tariff.
“We have about 600 kilos of beans on the way from Bolivia. We have no idea what they will cost right now,” Tango-Lowy told ABC affiliate station WMUR in Manchester.
Tango-Lowy said much of his packaging comes from Hong Kong, which is subject to China’s tariffs.
“We work domestically where we can, but a lot of what we do is not available domestically,” Tango-Lowy said. “It just doesn’t exist.”
Tango-Lowy is bracing to have to absorb the tariffs, saying, “We’re going to need the beans at some point.”
As food and beverage companies contemplate if they will or can’t cover the tariffs without raising prices on customers, Andrew Sinclair, owner of Mad Lab Coffee in Los Angeles, said his prices will stay the same.
“If you had to pay $9 for a cup of coffee I probably wouldn’t see you every day, and I like seeing people every day,” Sinclair told KABC. “So we’re going to keep our prices the same.”
Sinclair said he trusts his longstanding partnerships with growers in Colombia and Ethiopia will help him weather the economic turmoil.
“If you can afford a good cup of coffee, go to your local coffee shop and grab a good cup of coffee,” Sinclair said. “And if you can’t afford it, please don’t buy a cup of coffee and end up not being able to pay your rent. That’s just not responsible.”
