PHOENIX – The federal government’s 25% tariffs are now in place, impacting businesses abroad, in the US and in Phoenix.
One food producer explained just how much produce we get from Mexico, everything from avocado, to watermelon and even corn.
Those prices could soon be going up, impacting suppliers and Phoenix consumers.
“Watermelons come from Mexico. Oranges come from Mexico,” said owner Sonia Rivera.
Will a generational business be at risk?
The backstory:
The roots of RS Produce run deep. The family business started three generations ago, when her grandfather sold produce out of the back of his truck in Tucson.
“It’s been around the family for years,” Rivera says. And for years, they’ve reaped the fruits of their labor through economic recessions and a pandemic.
What’s next:
This week, a new obstacle is in their way.
“We are now having to pay 25% of what any imported load costs us,” said Rivera.
This week, the Trump administration smacked three of the US’s biggest importers – China, Mexico and Canada with tariffs on many imported goods.
President Trump argues the move will protect US industries and prevent the flow of fentanyl into our borders.
“Tariffs are not just about protecting American jobs, but they are about protecting the soul of our country. Tariffs are about making America rich again, great again, it’s happening and it’s happening quickly. There will be a little disturbance, but we are OK with that,” Trump said in his address to Congress on March 4.
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The disturbance is already felt in the market as the Dow plummeted by nearly 700 points Tuesday, causing some business leaders to worry and infuriating leaders like Canada’s Justin Trudeau.
“This is a very dumb thing to do, having two friends fighting is exactly what our opponents around the world want to see,” he said in a recent public appearance.
Local perspective:
For Phoenix businesses like Rivera’s there’s also some panic.
“We have definitely had to do a last-minute scramble and see what we are going to do,” she said.
The majority of her business’ produce is sold to customers like street vendors or Mexican desert shops and restaurants and it comes from across the southern border.
“Watermelons, mangos, so many different types of produce is brought in from Mexico,” said Rivera.
Dig deeper:
She waits for the full impact of the 25% import tax, she says they have no choice but to raise prices.
“A lot of what people don’t realize is that a lot of these costs will just be added to the product itself. Already we are on a very small margin in that we import these products and sell them. So we are having to increase our prices, and unfortunately, the customers – like ourselves – will have to take a hit,” she said.
More tariffs could be coming, including tariffs on foreign cars, aluminum and steel.
They are set to be announced in early April.