How Trump Administration's Tariffs Could Raise Costs in CA
12/12/2024 | 2mVideo has Closed Captions
Proposed tariffs on imports from Mexico and China could raise costs and affect California’s economy.
As the Trump administration signals potential increases in tariffs on imports from key trade partners Mexico and China, California braces for economic impacts. These tariffs could exacerbate the state’s high cost of living by raising prices on essential goods. Economists warn of ripple effects on trade hubs like the Port of Los Angeles and the state’s interconnected supply chains.
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SoCal Matters is a local public television program presented by PBS SoCal
How Trump Administration's Tariffs Could Raise Costs in CA
12/12/2024 | 2mVideo has Closed Captions
As the Trump administration signals potential increases in tariffs on imports from key trade partners Mexico and China, California braces for economic impacts. These tariffs could exacerbate the state’s high cost of living by raising prices on essential goods. Economists warn of ripple effects on trade hubs like the Port of Los Angeles and the state’s interconnected supply chains.
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Those countries accounted for 40% of the state's imports in 2023.
Businesses that import goods must pay the tariffs.
They tend to pass on their increased costs to consumers.
Economists largely view tariffs as a tax, especially on the lowest and middle-income families in the nation.
Such tariffs could exacerbate California's already high cost of living and raise the prices of cars, tech and electronic products, medical devices, groceries, and more.
"The port and logistics complex in Southern California is a very important part of the economy, and directly tied to the countries he threatened," said Stephen Levy, an economist in Silicon Valley.
Trade activity at the Port of Los Angeles, which is the busiest port in North America and handles nearly 10% of all US imports, rose nearly 19% in September from the same month a year ago.
They totaled $27.9 billion, a 20% increase year over year.
Those numbers could head the opposite direction as a result of tariffs.
Kenia Zamarripa, a spokesperson for the San Diego Regional Chamber of Commerce, said, "The CaliBaja region is interconnected with a multibillion-dollar supply chain."
"The region helps facilitate 80% of the trade between California and Mexico," she said.
The nation's top imports from Mexico in September were petroleum and coal products, computer equipment, and motor vehicle parts, according to the Bureau of Economic Analysis.
Trade experts said they expect a near-term surge in port activity as businesses brace themselves for tariffs by importing more goods now.
With CalMatters, I'm Levi Sumagaysay.
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SoCal Matters is a local public television program presented by PBS SoCal