While some see tariffs as a sign of trouble for local economy, some see opportunities
Mar. 8—President Donald Trump once again delayed imposing tariffs on Canada and Mexico on Thursday, but local businesses are still worried about the consequences if the taxes take effect in the coming weeks.
Sam Lee owns Chop Chop, located at 910 W. Lodi Ave., and the aluminum containers he uses to hold takeout orders are imported from China.
Lee said a case of 1,000 containers costs about $150. Trump's proposed tariffs could add another 10% to the cost over the next few weeks, and another 10% after April 2.
"Last year, everything went up in price," he said. "But then Trump won (the election), and said 'I'll do better. Everything's going to go back to normal.' I said I'll keep the same prices, let's see how it goes. And now? This tariff stuff ... I don't know."
Lee said he prefers to use aluminum containers because they keep your food warm for as long as two hours, and the sauces he uses in his dishes will not ruin the material like it does to paper or cardboard takeout boxes that other businesses use.
He added that he orders his containers from China because there are very few domestic distributors, and those that do produce the the units are more expensive.
Despite the potential for his costs to increase, Lee said he thought Trump did the right thing.
"It's not fair," Lee said. "A lot of countries tax a lot of money. Some are as high as 100% or 200%."
Trump announced on the day of his inauguration that he intended to impose tariffs on Canada Mexico and China on Feb. 4.
He delayed the levies against the former two nations for a month on Feb. 3 after the countries pledged sending troops to their respective borders with the U.S. to help curb illegal immigration and the flow of drugs across the border.
However, the 10% tariff against China went into effect as scheduled.
Last Thursday, Trump said the levies would go into effect on March 4, and they did, as all three nations had 25% tariffs enacted against them.
But on March 6, Trump again delayed the tariffs against Canada and Mexico, stating they would go into effect April 2.
Throughout his 2024 campaign, Trump ran on the pledge that he would impose tariffs, telling his supporters that foreign nations pay the fees for goods coming into the country.
Tariffs are typically charged as a percentage of the price a buyer pays a foreign seller, and are collected by Customs and Border Protection agents at 328 ports of entry across the country, according to pbs.com.
"It is importers — American companies — that pay tariffs, and the money goes to the U.S. Treasury," the outlet reported. "Those companies typically pass their higher costs on to their customers in the form of higher prices. That's why economists say consumers usually end up footing the bill for tariffs."
In the fiscal year that ended Sept. 30, the government collected around $80 billion in tariffs and fees, compared to the $2.5 trillion that comes from individual income taxes and the $1.7 trillion from Social Security and Medicare taxes, PBS reported.
Trump's tariffs are also worrying those who export their products, like many of Lodi's winemakers.
In response to the president's tariff's Canada announced it would be removing all American-made alcoholic beverages from store shelves, denying revenue streams to winemakers, breweries and distilleries.
According to Trading Economics, the United States exported more than $300 million worth of spirits to Canada last year, as well as $422 million worth of wine and $41 million in beer.
"The tariff issue is complicated and nuanced," Lodi Winegrape Commission Executive Director Stuart Spencer said. "Canada is our number one export market, and removing California wines from the shelves is a real problem. We have several wineries that do a lot of business in Canada and this a big concern."
And it isn't only the alcohol vintners produce that will be impacted, Spencer said, adding that historically, the majority of winery packaging supplies are imported from Europe, Mexico, and China.
The potential tariffs on those products will increase costs for most vintners, he said, and depending on the product, it is not always easily sourced domestically.
"Our farmers are feeling the ground shifting beneath their feet," Rep. Josh Harder, D-Tracy, said. "I'm deeply concerned about how this escalating trade war will increase costs and cut off market access for our local growers. Our economy depends on exporting our world class crops — we need a return to stability, not another fight that we cannot afford."
San Joaquin County Supervisor Steve Ding said he sees the tariffs on Mexico and Canada as an opportunity for California growers.
He noted that when he worked for Rep. Richard Pombo decades ago, the Congressman was opposed to international trade deals such as NAFTA and believed that such deals decimated local asparagus and tomato growers.
Ding says if the tariffs go through, Americans will have to source locally, which will lead to fresher, higher-quality food on the shelves that will be healthier for residents and boost the local economy.
The changes can be scary, he said, but there are also opportunities.
"It can give you a little bit of heartburn," Ding said of the proposed changes. "People don't like change."
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