These days, any storage space at Reston’s Elden Street Tea Shop is full.
That’s not solely due to the success of the business, which first opened its doors in 2017, but rather the result of precautions taken as the tariffs cloud the shop’s future.
“I was expecting the tariffs to go through the first time in February, so I preemptively bought a ton of tea to kind of hold us over until we knew what was going on,” owner Rachel Eisenfeld said. “I haven’t had to purchase again from my suppliers yet, [but] I suspect by June I will have to purchase again.”
All 88 teas in the store’s selection come from outside the United States, making the import of each item subject to the latest tariffs imposed by the Trump White House.
That includes teas imported from as close as Canada, whose exports are subject to a 25% tariff, to teas imported from the Far East, where tariffs on Chinese goods run as high as 245%.
As the United States is far behind in the world’s race in tea production, a local solution is extremely hard to come by.
“I know one tea farm that is in Virginia,” Eisenfeld said. “They have about 20 acres of land, and they produce about 25 pounds of tea a year. I go through about 25 pounds of tea a month.”
Tariffs come fast and furious
Shortly after his inauguration on Jan. 20, President Donald Trump stood in the rotunda of the U.S. Capitol and made his approach to tariffs clear.
“I will immediately begin the overhaul of our trade system to protect American workers and families,” Trump said. “Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens.”
It didn’t take long for the President’s words to become action. Twelve days after taking office, Trump signed executive orders imposing 25% tariffs on imports from Mexico and Canada, as well as 10% tariffs on imports from China.
Trump’s “reciprocal tariffs” were announced shortly later, impacting imports from nearly 90 countries. Those tariffs, which will all be effect later this summer, range between 11% and 50%.
Though the current tariff policy is expected to generate more than $2.1 trillion in revenue over the next decade based on analysis from the Tax Foundation, the tariffs are expected to have a severe impact on the pockets of taxpayers.
Estimates for this year predict an increase in federal tax revenues by $166.6 billion — the largest jump in more than 30 years.
What’s next?
Eisenfeld, obviously, finds herself between a rock and a hard place.
Foot traffic to the shop, located in Reston’s Lake Anne Plaza, is already down — federal mass layoffs partly to blame, she suspects. — and any moves she makes to combat the increased tariffs could have an equal and opposite reaction.
Like if Eisenfeld was to narrow the shop’s expansive inventory, which could alienate some of the shop’s patrons, she believes.
“We have an extensive, unique list of teas that a lot of places don’t carry in the area,” Eisenfeld said. “[Customers] want to be supportive of us and, when we cut teas, it’s a loss of income for us because they’re going to buy it online somewhere.”
And its not just Eisenfeld’s store. Tea shops across Northern Virginia, even those that cater to bubble tea and boba as opposed to traditional tea offerings, are aligned to make some tough choices without additional federal action or, simply, some breathing room.
“Worst case scenario is that we are unable to afford buying more product and we have to close,” Eisenfeld said. “That’s not something to take lightly.”
