PHOENIX, AZ (3TV/CBS5) -- The growing trade dispute between China and the U.S. is impacting both what Arizona businesses buy from China and what they sell. They fear that could be passed onto consumers.
WATCH VIDEO: Trade war with China impacts local business
The Beer Research Institute has already seen the impact of tariffs from their steel drums to the aluminum cans they use. The owner tells us he wants to see this deescalate.
"Pretty much everything we put beer into is affected," said co-owner Matt Trethewey. After seeing a global tax on steel and aluminum imports last March, he's worried the administration is now considering increasing the tax rate on Chinese goods.
"Most small businesses operate on a 10% to 20% return on revenue and when have an additional 25% taken out on that return on revenue, it is potentially crippling," Trethewey said.
China responded, saying it will retaliate with its own tariffs. It's Arizona's 3rd-largest exporter.
"China consumes a lot of meat products, they consume a lot of cotton so that's going to be a great impact," said Stephanie Smallhouse, the President of the Arizona Farm Bureau. She said long-term, consumers could see prices go up if farmers and ranches are forced to close up shop.
"We need these issues to be resolved faster than we're going out of business, and right now those two things are catching up with each other," Smallhouse said.
Back at the Institute, Trethewey said he wants to expand but won't be able to now at the pace he wanted.
"Sooner or later the consumers are going to wind up paying for that as well," he said.