Businesses face a tough decision this holiday season: Run a Black Friday promotion and see their profits drop, or charge full price and risk turning off buyers.

Some business owners said sharply higher U.S. tariffs on imports are raising their costs, giving them less room to roll out aggressive holiday sales.

Lisa Cheng Smith, founder of Yun Hai Taiwanese Pantry, a New York City-based retailer that imports products from businesses and farms in Taiwan, said her costs have jumped 20% to 50% this year from 2024 because of U.S. tariffs on imports from Taiwan and other Asian countries.

In past years, Yun Hai has offered a 15% Black Friday discount as a way to drive holiday purchases, with Cheng Smith telling CBS News that the annual promotion "is a really important thing for us." This year,

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