Local business owner and expert weigh in on pending tariffs

CHULA VISTA, Calif. (KGTV) – Another day and another new policy from the white house being announced on Friday.

“The president will be implementing tomorrow a 25 percent tariffs on Mexico, 25 percent tariffs on Canada, and a 10 percent tariff on China,” Karoline Leavitt, White House Press Secretary

"It's pure economic. We have big deficits with, as you know, with all three of them,” President Donald Trump said.

Trump also stated in the past the purpose of the tax on imports is to curb drug trafficking and illegal immigration into the U.S.

Still, there’s a reaction for every action.

The companies and distributors will have to pay more for those imported goods and products.

Faculty director of international business at USD Eileen Daspro told ABC 10News companies will have to decide to either take the loss or there’s another avenue.

“I think there’s a lot of concern that consumers will face the brunt of this import duty by paying higher prices for everything we buy from Mexico and Canada, which is pretty far-reaching,” Daspro said.

There’s also a wonder of what that means for small businesses that serve customers.

Kevin Rhodes is the owner of Lime in The Coconut on Chula Vista’s Third Avenue.

“We’re already in a tough environment,” Rhodes said.

He told ABC 10News they get a lot of products and produce that come from Mexico.

“So for that to go up 25 percent, I have to decide do I make new menus really quick and raise prices or do I just take the hit on the chin and hope for the best?” Rhodes said.

After rebounding from price increases following the pandemic and the cost of living being as high as it is, there’s a worry about what the future holds.

“We’re getting pressured from the bottom with higher prices and from the top with wanting lower costs for the customer. It just keeps getting compacted,” Rhodes said. “And so for the customers out there, just know if you want us to stay in business, work with us.”