Georgia business owner says tariffs forcing him to raise prices

MILLEDGEVILLE, Ga. — Georgia’s economy depends heavily on international trade, and new numbers from the Georgia Chamber of Commerce highlight just how big of a role it plays. The chamber reported $198.7 billion in foreign trade in 2024, making Georgia the sixth-largest state for international trade.

The chamber said Georgia is well-positioned to benefit from global investments and trade partnerships. But tariffs, it warns, are raising costs for businesses and consumers alike.

Arthur Merchant has seen the effects firsthand at Milledgeville Liquidation Depot. It’s a store he’s owned for nearly a decade. His business model is built on selling flooring, appliances and furniture at bargain prices, but those deals are getting harder to keep.

For the third time this year, Merchant’s supplier, Shaw Floors, has raised the cost of imported flooring from China, Vietnam and Indonesia. The tariffs have brought prices up for Merchant more than 20% in 2025. In February, tariffs pushed his imported flooring prices up 4%. In April, another 10% tariff hike. And September will bring an increase of 8%.

“It’s just self-destructive behavior on the government’s part because it is inflationary and the costs are gonna have to be passed on to the customer,” Merchant said. “The margins that small businesses make is very small, anywhere from 4% to 14%.”

Meanwhile, the Trump administration hopes the tariffs help revive American manufacturing, generate government revenue, and pressure trade partners to negotiate policies more favorable to the United States.

But at the same time, Merchant says its impacting his business and his customers.

Merchant has already cut back on services — no delivery, no extra employees, and cash-only transactions — to keep his prices as low as possible. But he says the tariffs are forcing his hand.

“It’s gonna cost more money. I want people to understand that the costs that are coming are not from the people that own the businesses,” he said. “It’s because of the tariffs. The tariffs are gonna raise your prices.”

Johnny Simpson, a contractor with Total Construction and a regular customer, said discount stores like Merchant’s have long helped keep projects affordable.

“The flooring, I think it helps because you can get it pretty much half price and it kind of offsets the installation times,” Simpson said.

Merchant said the pressure of rising costs is also shaping his future. He hopes to sell the business by the end of this year and retire earlier than planned.

What’s happening in Milledgeville reflects a broader picture, the Georgia Chamber noted. While the state continues to break records in international trade, local businesses are being squeezed between booming exports and rising import costs.