President Donald Trump says he is placing a 5% tariff on all Mexican imports, effective June 10, to pressure the country to do more to crack down on the surge of Central American migrants trying to cross the U.S. border. These tariff threats will be impacting San Diego businesses.
Businesses like LiVa Market, in Otay Mesa, sells papayas, tomatoes, and other brand products from Mexico.
It imports about 75 percent of its goods from across the border. And if the price to bring those items into the country goes up, the owner said he'll have to raise his prices.
Some who advise companies on imports believe it’s going to happen.
"In my view, I think the tariffs are a done deal. I think they're coming,” said Juan Moreno, from Western Trade Maquiladora Association.
Moreno helps clients follow trade rules when importing their goods and he said business owners are panicking.
“My email was blowing up this morning. I had 12-15 different emails with clients saying these 'tariffs are going to kill us',” said Moreno
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That's not just on products that sell at Mexican markets like fruits and vegetables there are many other goods that are produced in Mexico.
Moreno predicts that prices will rise on imported goods, just like they did when the US imposed tariffs on China.
“It's really the US consumer at the end of the day. It's you and me that are buying their computer, the iPhone, that piece of clothing and that shoe. Whatever that item is, prices are going to go up for us,” said Moreno.
One example that Moreno pointed out was TVs. Many are made in Mexico and some only cost $300 now. He anticipates that by the end of the year, that cheap television will cost $500 if high tariffs are imposed.
