China tariffs force layoffs at Moonlight Meadery, owner says
Owner says he had to lay off wife after deal fell apart
Owner says he had to lay off wife after deal fell apart
Owner says he had to lay off wife after deal fell apart
As President Donald Trump threatens to expand a trade battle with China and impose tariffs on all $505 billion worth of imports into the U.S., one New Hampshire small business said it has already been forced into layoffs.
Moonlight Meadery of Londonderry has won acclaim and medals for its meads and ciders. But it hasn't avoided fallout from the $34 billion trade war between the United States and China.
The brewery had agreed to ship 100,000 bottles per year to China. After the business bought supplies and hired additional help, tariffs killed the deal. Owner Michael Fairbrother said the scuttled deal with China means half of Moonlight Meadery's barrels are sitting empty.
"The 16 percent increase in cost was nothing I could take on my shoulders or my exporter could take on his shoulders," Fairbrother said.
The costs forced Fairbrother to sell his house and fire five employees, including his wife.
"That was the hardest thing I've ever done in my entire life, and it's still pretty painful and difficult to even think about," he said.
U.S. Sen. Jeanne Shaheen said the tariffs, especially on steel and aluminum, could result in 1,900 net job losses in New Hampshire.
"Last year, we had more exports than ever in New Hampshire history," Shaheen said.
The senator said she agrees with Trump that countries take advantage of the U.S. when it comes to trade, but she said there's bipartisan support for finding a better solution.
"We should take them to the WTO, the World Trade Organization," Shaheen said. "We need to beef up our enforcement in a way that allows us to win in those cases. What the president is doing is using an ax for something that we really need a scalpel for."
Fairbrother said he hopes a better way is found. He said he has taken some precautions, but he and other small business owners are preparing for the worst.