Sweet Costs Rising at Economy Candy Due to Tariffs
NEW YORK — Economy Candy, a beloved candy store in New York’s Lower East Side, is facing the bitter effects of new tariffs on goods imported from around the world. The shop, owned by Mitchell Cohen, boasts a wide array of candies including gummies from Germany, lollipops from Spain, and chocolates from Japan. These treats are now under the shadow of tariffs recently announced by President Donald Trump.
Cohen estimates that nearly all of the store’s over 2,000 products will feel the pressure from these tariffs. The sweeping measures have touched nearly every part of the American economy, hitting small businesses like his particularly hard.
Before the tariff discussions began, Cohen had noticed a slight easing of rising prices due to inflation. However, the introduction of tariffs has him worried that prices will continue to climb. "I think it’s going to lead to another round of hyperinflation on certain items,” Cohen explained. “If we’re putting tariffs on everything, nothing is going to remain affordable.”
Stepping into Economy Candy is like walking into a retro candy wonderland, with brightly colored displays of candy from floor to ceiling. The iconic sign and nostalgic music create a cheerful atmosphere, reminiscent of simpler times. However, the store is now feeling the sting of price increases on raw materials like cocoa, which have already surged before tariffs were even implemented.
Recent data shows that candy prices have risen approximately 34% over the past five years. This uptick in cost is forcing consumers to reconsider their purchases, with price now being a leading factor in candy-buying decisions. With a significant portion of Economy Candy’s products imported, Cohen fears even more price hikes are on the horizon as tariffs take effect.
For example, unique treats like Snickers bars are caught in the crosshairs—those made with ingredients sourced from various countries are also subject to tariffs. Even items produced right here in the U.S. may see price increases because they rely on materials from abroad.
Andreas Waldkirch, an economics professor, highlights that almost everything we consume, even candy, has ties to the global supply chain. As tariffs elevate costs, Cohen finds himself wondering how he will keep prices manageable for his loyal customers.
The tradition of Economy Candy runs deep in Cohen’s family. He took over the shop from his parents, who inherited it from their parents. He recalls fond memories of growing up in the store, emphasizing the importance of affordability in the face of rising costs.
Many of the American products sold in Economy Candy also rely on foreign ingredients. Prices have already risen for some of the staple items, leading Cohen to reconsider the pricing strategy for the store’s selection. The “loss leader” items that he once sold at a discount now have increased price tags—a reflection of the tough reality facing small business owners.
As tariffs draw attention to larger issues, such as skyrocketing prices for vehicles and construction materials, there’s an important reminder that small purchases matter too. The financial strain can be felt deeply in shops like Economy Candy, where families strive to maintain a sense of joy amid economic challenges.
Cohen’s grandfather started the original business during the Great Depression, pivoting from shoe repairs to candy sales to survive tough times. Over the decades, Economy Candy has weathered its fair share of storms, including the impact of the September 11 attacks and the COVID-19 pandemic.
With the possibility of the average U.S. tariff rising to nearly 25%, the potential consequences weigh heavily on small business owners like Cohen. He understands the need to bring manufacturing back to America but struggles with the reliance on foreign materials for products that his customers love.
As he navigates these challenges, Cohen remains optimistic for his customers, wanting to keep the spirit of his store alive. “You travel back to a time when nothing mattered,” he said. “When you didn’t worry about anything.”
