Tariffs can’t ‘make tea great again’ in US, Michigan tea business owner says

(17 Apr 2025)
RESTRICTION SUMMARY:

ASSOCIATED PRESS
Ann Arbor, Michigan – 17 April 2025
1. Various of TeaHaus owner Lisa McDonald preparing a cup of tea
2. SOUNDBITE (English) Lisa McDonald, TeaHaus:
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“So, my name is Lisa McDonald. And I own TeaHaus, here in Ann Arbor, Michigan. TeaHaus has been around now for almost 18 years – in December, we’ll be here for 18 years. And we sell tea and everything about tea.”
3. Various of McDonald preparing a customer’s order for loose-leaf tea
4. Various of a TeaHaus employee placing cookies in a jar
5. SOUNDBITE (English) Lisa McDonald, TeaHaus:
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“I’m not sure what to do. I have the most amazing customer base. I’m one of a very few, very high-end tea stores in America, and I have customers from all over the U.S. and the world. And they support me. They also support my community. But at some point, tea and loose-leaf tea is a little bit of a luxury item. Therefore, there is only a certain amount someone can spend. So, as much as my customers would want to support me, I don’t think I can charge $75 for a 50-gram bag of tea, no matter how amazing that tea is.”
6. McDonald prepares a customer’s order
7. SOUNDBITE (English) Lisa McDonald, TeaHaus:
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“Thus far, it’s basically just put a big pit in my stomach. I can equate it to the COVID pivoting pit, because I’m not exactly sure what is happening.”
8. McDonald puts on her glasses to look at a computer screen with a wall of tea behind her
9. Tea sizes and prices are listed on a chalkboard affixed to a wall
10. An employee does some cleaning with a cup of tea in the foreground
11. SOUNDBITE (English) Lisa McDonald, TeaHaus:
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“We can’t grow tea in the U.S. to the extent that we need. We can’t just flip the industry and ‘make tea great again’ in America. It just can’t happen. So, if tariffs are placed on items which we in the U.S. can quickly make up by producing or sourcing here, I understand that. That is good for America. However, it has to be something that companies can very quickly pivot to produce or source here. We can’t do that with tea, for example.”
12. An employee makes sure the front door is unlocked and switches on the lights as the store opens for business
13. Various of a worker making change for a customer
14. SOUNDBITE (English) Lisa McDonald, TeaHaus:
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“I do stay up night wondering exactly how this is going to all come out in the end.”
15. McDonald finishes making the cup of tea and places it on the bar
STORYLINE:
A tea shop in a Michigan college town is caught in the middle of the ongoing tariff fight between the United States and China.

“It’s basically just put a big pit in my stomach,” said Lisa McDonald, owner of TeaHaus (TEE’ HOUSE’), located in Ann Arbor, home to the University of Michigan.

McDonald has owned TeaHaus for going on 18 years and sells tea to customers across the U.S. She imports loose-leaf tea from China, India, Kenya, Sri Lanka and other countries. Very little tea is grown in America.

China faces 145% taxes on exports to the U.S., while the White House gave dozens of other countries a 90-day reprieve for most duties. Beijing has hit back with 125% tariffs on American exports.

President Donald Trump has said the tariffs are designed to spur U.S. manufacturing.

McDonald said she understands the rationale, but that it doesn’t apply to the tea industry.

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