Bay Area businesses are preparing for the fallout after President Donald Trump placed a sweep of new tariffs on Canada, China, and Mexico.
Ricos in Campbell uses fresh avocado as a main ingredient in many of its dishes. The manager told NBC Bay Area she's already paying $80 per box and worries that the price will increase significantly because of the newly ordered 25% tariff.
Builders across the Bay Area are also bracing for increased lumber costs after Trump ordered a 25% tariff on goods from Canada. The vice president of A.Dariano Construction in San Jose said the tariff will likely increase the cost of new construction and remodels.
"We would try to do the best we can to not to bring it over to the customer, but it's not an overhead cost," said Brandon Dariano. "We can play with as much, so at the end of the day, the customer would probably see an 8% increase as well."
President Trump took to social media to acknowledge that there would be some pain and added that "it will all be worth the price that must be paid."
The president also reacted to Canada's Prime Minister announcing a 25% retaliatory tariff on U.S. goods.
"We subsidize Canada to the tune of $200 billion a year and for what? What do we get out of it? We don't get anything out of it," Trump said.
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The White House said the tariffs would help with border security and reduce the flow of fentanyl into the U.S.
Now, Mexico said it plans to implement new tariffs on the U.S. Meanwhile, China said it will file a lawsuit with the World Trade Organization to take countermeasures.
However, local businesses question how they will handle the possible increase in day-to-day costs.
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The tariffs are set to go into effect on Tuesday.