Goods from all over the world pass through California's ports of entry each day. It's a trade agreement with Mexico that has kept the flow of commerce going for three decades. So how does a 25% tariff on imports change the game?
"Twenty-five percent is too much," truck driver Edmundo Rojo said.
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Rojo says he's been hauling goods from China that he picks up in Long Beach to Mexico for 33 years. He says business has already slowed.
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SIGN UP Joaquin Luken, executive director for the Smart Border Coalition, says that in this case, the cure could be worse than the disease.
“The importer is just going to order less items from the exporter that creates an economic slowdown,” Luken said.
There are three commercial land ports of entry in Southern California. By far the busiest is Otay Mesa. Luken says of the 6,000 semi-trucks that go through those ports, 4,000 to 4,500 of them come through Otay Mesa.
Consumers buying cars, electronic appliances and produce will likely feel the immediate impact.
“There are things the U.S. sends to Mexico, and Mexico is planning on imposing reciprocal tariffs as well, and that just creates this trade war,“ Luken said.
President Donald Trump says the tariffs are to force the two U.S. neighbors to step up their fight against fentanyl trafficking and stop illegal immigration. But he also wants to eliminate the Americas’ trade imbalances and push more factories to relocate in the U.S.
“You fight fentanyl smuggling with technology and added staffing, which is much needed at ports of entry,” Luken said.
Rojo finds himself caught in the middle. He says an added 25% tariff could be the end of the road for him.
“I have been doing this most of my life, and I don’t know what is going to happen now,” Rojo said.
The Smart Border executive director expects a compromise will be reached before or shortly after tariffs are fully implemented.
