Small businesses brace for financial impact of President Trump's tariffs on imports
Small businesses brace for Trump tariffs impact
As the tariffs near reality, some businesses are beginning to prepare for a rise in prices that consumers will likely see as well.
DALLAS - President Donald Trump is moving forward with his plan to place tariffs on imports out of Mexico, Canada and China as soon as Saturday.
As it nears reality, some businesses are beginning to prepare for a possible rise in prices that consumers will likely see as well.
What we know:
President Trump on Friday said he plans to move forward with tariffs on imports from Canada, Mexico and China starting Saturday.
"It's something we're doing and will possibly, very substantially increase it or not. We'll see how it is," he said. "But it's a lot of money coming to the United States.
The Trump administration is hoping the taxes reduce trade deficits.
Featured
10 things that could cost more under new tariffs
A 25% tariff on imports from Canada and Mexico, plus additional tariffs on China, could drive up prices on everything from gas and groceries to smartphones and cars.
White House Press Secretary Karoline Leavitt said the plan is to have 25% tariffs on Mexican and Canadian imports and a 10% tariff on China.
The president previously threatened tariffs to gain cooperation to stop the smuggling of fentanyl and to crack down on illegal immigration.
The affected goods range from fruits to auto parts.
Local perspective:
Locally, Mario Moya Sr. and Mario Moya Jr. own Mario Bros Tacos off Abrams Road in Dallas.
The family business is already facing inflation post-pandemic, plus another possible hit with the tariff price hikes.
Moya Jr. says their vendors have already sent out a warning.
"Currently, for a case of avocados, we are paying $30-$35, and now it’s upwards of $80. Limes coming in was $20. Now, it will be upwards of $60."
The Lake Highlands restaurant has been the Moyas’ livelihood for a decade. Their last resort — but one they must consider — is raising prices.
"We want to hold out as much as we can," Moya Jr. said. "At some point, it’s a business you are running, you know?"
Featured
US tariffs on Canada and Mexico begin Saturday—what it means for gas prices
President Donald Trump’s 25% tariffs on Canada and Mexico begin Saturday, but he hasn’t decided whether to include oil imports— a move that could affect gas prices despite his pledge to cut energy costs.
Big picture view:
SMU Economist Mike Davis says the tariffs invite retaliation.
"All of a sudden, we put tariffs on Canadian auto parts; it’s going to be more expensive for an American car company to build a car," he said. "If these tariffs get applied, and they stick, it will have a big effect on what we all pay for all types of things."
What's next:
Canadian Prime Minister Justin Trudeau posted on X that they are working hard to prevent the tariffs but warned if the U.S. moves ahead, "Canada’s ready with a forceful and immediate response."
The president also says it’s possible more tariffs on computer chips, steel and pharmaceuticals.
The Source: Information in this article comes from national news coverage, the White House press secretary and local interviews.