Farmers and Small Business Owners Urge Iowa’s Congressional Leaders to End the ‘Chaotic’ Tariffs

By Cami Koons

Small business owners and farmers are already feeling the increased costs and decreased consumer purchasing power resulting from foreign tariffs imposed at the federal level.

During a Tuesday press conference in West Des Moines’ historic Valley Junction, local business owners said they placed orders in January for holiday products that are becoming more expensive by the day as manufacturers and even local creators have to increase prices due to the additional tariffs.

Val Voicek, the owner of Bing’s, a store in the business shopping district, said one of her best-selling products, Nee Doh, a squishy sensory toy, has jumped from $5.95 at the beginning of the year to $6.95 now. Some orders, including her holiday order for the popular product, have been canceled because, as she said, the company has “priced themselves out of the market.”

Voicek said that means kids aren’t spending their allowances on these toys as readily, and adult shoppers are holding off on extra purchases when they come in the store to shop. 

“I’ve been in business for eight years, and this time is really uncertain for us,” Voicek said. “It’s even harder than COVID, because it’s something that people and politicians in Washington could make a difference and take care of right now, but instead, we’re left in our communities trying to figure it out on our own.”

Voicek and Meredith Wells, another Valley Junction business owner, said about 70% to 80% of their inventories are imported products. Wells said for the orders she has already placed for the holiday season, vendors have warned her could cost 10% to 30% more to account for the associated tariffs throughout the supply chain. 

Wells said she tries to buy from local producers to stock her store, MoMere, but most local producers source packaging and other materials overseas and are similarly impacted. 

“The truth is, we’re not a big corporation, we can’t absorb these added costs,” Wells said. “We run on tight budgets, and every disruption cuts deeper. These tariffs aren’t being paid by foreign governments, they’re being paid by small businesses like ours, and ultimately, by our customers.” 

Impact on Iowa Farmers

Aaron Lehman, president of Iowa Farmers Union said the tariffs and the ever-changing uncertainty are also having an impact on Iowa farmers. 

“We’re seeing falling prices for what we grow — and, on the other hand, farmers see higher prices for what we have to purchase, like fertilizer and other inputs that have to be imported into this country,” Lehman said. “Farmers already have few choices in the marketplace, and a chaotic trade policy makes a bad situation even worse.” 

Lehman said the tariffs also disrupt farmers’ established foreign trade relationships, because American farmers can no longer be seen as a “reliable” country to buy from. 

The trickle-down effect is that farmers put off equipment upgrades, which hurt ag-adjacent industries. He said it also means farmers delay a transition to the next generation, even though the average age of a farmer keeps going up and up. In some cases, it could even mean the end of a family farm, he said. 

“We need to demand better from our elected leaders,” Lehman said. “Iowa members of Congress need to speak loudly about the impact here on the ground, in our fields and in our communities. They need to demand that Congress should have a say in fair trade policy.” 

Lehman said U.S. Sen. Chuck Grassley has made some comments in favor of this action, but that there is “not enough momentum.” 

Lehman said foreign trade policy needs to prioritize fair trade, build relationships over time and allow farmers, and businesses, to import what they need. 

“A well thought out, reasonable trade policy can include a targeted tariff and be quite effective to help farmers and workers,” Lehman said. “But a chaotic trade policy that uses tariffs and that, in a way, puts farmers at the front lines of a retaliatory tariff, makes no sense at all.”

Iowa Capital Dispatch is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Iowa Capital Dispatch maintains editorial independence. Contact Editor Kathie Obradovich for questions: [email protected]. Follow Iowa Capital Dispatch on Facebook and Twitter.