'Kind of ugly': Bay Area businesses brace for Trump tariffs, some ready to beat them

PETALUMA, Calif. (KGO) -- In the North Bay, businesses large and small are reacting to President Donald Trump's sweeping trade tariffs set to take effect at midnight Saturday. From steel to furniture, some companies that do not rely on imported goods and materials could be better positioned for what's next.

It's busy inside Van Bebber Brothers, a family-owned steel distribution service center in Petaluma since 1901.

"Things are definitely changing day by day," said Royce Van Bebber.

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Fifth Generation owner Royce Van Bebber, referring to President Trump's sweeping trade tariffs on imported goods. Van Bebber says he sources his steel domestically, not from overseas but already - U.S. manufacturers are reacting with price hikes.

"Domestically prices have gone up 20% to 25% already, why? Well unfortunately, the big steel mills, when they see tariffs, it gives them a green light to raise prices," said Van Bebber.

He says, absorbing the higher steel costs will be challenging.

"All these costs that come, we just pass them along. We try if we can hold it because we are sitting on older inventory, but we have to look at replacement costs," Van Bebber added.

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There's a furniture delivery arriving at California Sofa in San Rafael, owner Chris Michna says. He's in a good position to beat the tariffs.

"We are virtually integrated, I have my own factory in LA," said Michna.

He says, that's allowed him to keep prices competitive and as far as new tariffs are concerned, he said:

"I would imagine we'll be more competitive in terms of price and deliverability and it's made in the U.S. It's less of a political issue, more patriotic to be honest."

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Meantime, multinational corporations with manufacturing in Asia like Apple, Tumbling more than 9% Thursday. Dell, Best Buy and Nike dropping 15% or more on Thursday. Corte Madera-based Restoration Hardware stock plummeting 40% on Thursday. CEO Gary Friedman reacting in real time during an earnings call.

"Oh really? Oh, (expletive) OK. I just looked at the screen. I hadn't looked at it. It got hit when I think the tariffs came out," said Friedman.

Businesses large and small bracing what's next on the economic roller coaster.

"It's kind of ugly right now," said Van Bebber.