Local businesses still worried over potential tariffs of imported produce from Mexico, Canada
QUEENS (WABC) -- U.S. tariffs on products from Canada and Mexico have been paused for 30 days as both countries met President Trump's demands to increase border security and address drug trafficking, the White House said.
However, some local businesses are still worried over what could happen if those tariffs to take effect next month.
Tariffs on China went into effect overnight and now all imported goods from China face a new 10% tax. The executive order also adds import taxes to small packages -- meaning shopping on online stores like Temu and Shein will become more expensive.
Those retailers were previously exempt by a loophole that allowed shipments of packages worth less than $800 into the U.S. duty-free.
Overnight, China announced a retaliatory 15% tariff on U.S. coal and natural gas products, plus 10% on crude oil and certain machinery.
And as a trade battle heats up between the U.S. and China, trade tensions are on a low simmer between the U.S. and Mexico and Canada, after Trump paused his 25% tariff plan for 30 days.
On Tuesday, Gov. Kathy Hochul met with Canadian Consul General Tom Clark in Albany in a show of unity -- neither wanting a trade war.
"The trade relationship is critical," Hochul told Clark. "The amount of trade, I don't think people appreciate how that impacts the cost of living in a place like New York."
She told him there is "a sense of anxiety ... about the cost of everything going up."
She told him proposed 25% tariffs could drive costs for a family of four up anywhere from $1,300 to $3,000.
New York imports $22.8 billion in goods from Canada annually and conversely exports $19.5 billion.
Also still in limbo is the American food and grocery industry that gets nearly half of its imported vegetables from Mexico and Canada.
In New York, Hunts Point is the largest wholesale market of fruits and vegetables in the country and sure to feel the impact of tariffs if they happen.
Produce there is sent to local grocery stores, bodega and other markets.
Matthew D'Arrigo is the CEO of D'Arrigo Brothers Company, one of the 25 wholesalers at Hunts Point. He says the market is made for price fluctuations of supply and demand, but the possibility of a 25% tariff on imports from both Mexico and Canada worries him -- as nearly half our produce comes from both countries.
"In the end, it's very bad news for whoever is the producer, the original person that owns the dirt, that grows the produce, it's very bad news for them because it makes the product more costly and therefore less demanded," D'Arrigo said.
America is in its off-season for growing, so Canada's major greenhouse industry steps in to give us much of our greens and Mexico is a huge wintertime supplier that provides gigantic volume.
"You're eating Mexican product every day, eggplants, peppers, cucumbers, they're all coming from Mexico right now," D'Arrigo said.
That includes the avocado.
"If that tariff had hit, much of the avocadoes would have all of a sudden jumped 25% in value and everyone's guacamole would have been that much more expensive," D'Arrigo said.
There is also the impact on what is sold at the store and tariffs could result in tough decisions.
"What will happen is the buyer and the owner of that bodega will weigh out do I still want to buy this apple from Canada when I can buy the New York State apple that doesn't have a tariff and therefore is cheaper," D'Arrigo said.
The tariffs are now set to go into effect on March 4.
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