NORTH TEXAS — A trade war is emerging between trade partners, and consumers appear to be stuck in the middle.
CBS News Texas
President Donald Trump imposed 25% tariffs on imports from Mexico and Canada. A tariff is essentially a tax placed on goods made outside of the United States that are imported into the country.
On Saturday, Mexico ordered retaliatory tariffs, and a Canadian leader called on residents to stop buying liquor from some U.S. states.
Kandy Queen Dulceria owner Yesi Noyola spent her Saturday giving customers a taste of Mexican traditions at her mom-and-pop store in North Richland Hills.
“I’m from Chihuahua, Mexico, and I grew up in Mexico with all the traditional Mexican candies with the traditional birthday parties,” Noyola said.
Noyola has concerns about how the 25% tariffs ordered by President Trump on imports from Mexico could affect her business.
“I’m afraid we’ll have to close our doors because people won’t have the money to come and shop for things like piñatas and all the traditional Mexican candy that people love,” Noyola said.
Latin Business Association Chairman Dr. Ruben Guerra is sounding the alarm over the potential economic effects of the tariffs.
“This is an advantage now for other countries to become Mexico’s largest trader,” Guerra said.
Guerra said Mexico has been the United States’ largest trading partner.
“That happened because of tariffs that were done with China, so what happens now? Now we’re putting tariffs on Mexico, and we’re putting tariffs on Canada, so everything’s going to start going up,” Guerra said.
About 95% of all the products at Noyola’s store are imported from Mexico. She said she’s already heard from her distributors that prices will go up within 30 days due to the tariffs.
“Suppliers will have to raise their prices, which in turn will cause retail locations like me to raise our prices, hurting the consumer. The consumer is the one that’s going to hurt the most,” Noyola said.
Noyola opened her store three years ago and thought it would take her to a sweet retirement. Now, her future is uncertain.
“If you don’t see Candy Queen in six weeks, then you know what the tariffs did to small Hispanic businesses,” Noyola said.
The tariffs are set to go into effect at 12:01 a.m. Tuesday.