# The federal tariffs implemented today, how that impacts local businesses and consumers

MONTEREY COUNTY, Calif. (KION-TV) -- President Donald Trump's executive order, which imposes a 25% tariff on imports from Canada, China, and Mexico, went into effect today, setting off concerns for local businesses and consumers alike.

Tina Esparza, an economics professor at Hartnell College, states tariffs are essentially an "import tax" on foreign goods, which ultimately affects both the prices of products and the economy at large.

Data from the International Trade Association reveals that in 2023, China was the largest source of U.S. imports, with nearly $120 billion in goods. Mexico followed with approximately $62 billion, and Canada ranked seventh with $15.7 billion in imports.

Residents of Salinas are already starting to feel the effects. Lawrence Yee, a local resident, expressed concerns that the tariffs would lead to higher prices on everyday items. “I think I will be paying more for higher prices for items,” Yee said.

Claudio Capaccaing, another Salinas resident, added that agricultural products, including fruits and vegetables, could see a significant price hike. "Everything coming over from overseas is going to have an effect on these tariffs, especially on vegetables and fruits. So it's going to be a big impact, I feel."

While the tariffs may directly affect importers, the economic repercussions are expected to be widespread. Esparza explained that although the importers often front the cost of tariffs, the burden is frequently passed on to the consumer. "A portion, typically the largest portion, is paid by the consumer,” Esparza noted. “I don’t foresee these tariffs having a positive impact on our economy.”

In addition to consumer goods, products such as produce, lumber, and labor-intensive consumer items are also likely to experience price increases. "All these things that we are talking about are factors of production," Esparza added. "If we raise the price of those factors, then the price of almost everything else is expected to increase."

For local residents like Jose Luis Trujillo, the uncertainty caused by the tariffs is forcing them to rely on their savings in preparation for the months ahead. "We always prepare to have a little bit of savings for the rainy days, you know. And that's the way we are going to face this," Trujillo shared.

As tensions rise, Canada is now considering retaliatory tariffs on American goods, which could escalate the trade dispute even further.

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#### jose.romo

Bilingual Reporter

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