It’s not clear exactly how New Yorkers may be affected by new tariffs the Trump administration says will take effect Saturday, but there are concerns about potential price hikes on imported goods.
Hector Flores has been a sales vendor at Reyes Produce in the Hunts Point section of the Bronx for 25 years, selling fresh produce — mainly from Mexico — like avocados, tomatoes, bananas, limes and tomatillos, that ends up in the city’s restaurants, grocery stores and bodegas.
What You Need To Know
- Concerns are growing among some Bronx-based wholesale distributors about potential price hikes on imported goods from Mexico
- Following through on a campaign promise, President Trump moved toward 25% tariffs on goods from Mexico and Canada. Plus, 10% on goods from China
- Hector Flores, who sells fresh produce from Mexico to the city's restaurants, grocery stores and bodegas, believes Trump’s tariffs will force wholesale distribution companies to increase their prices, which would likely also increase grocery prices for New Yorkers
- The president insists the tariffs won’t lead to higher prices at home, however some economists believe there will be some pain for consumers
Following through on a campaign promise, President Donald Trump moved toward 25% tariffs on goods from Mexico and Canada, plus 10% on goods from China.
Trump says these new tariffs on major U.S. trading partners are in response to migrants and fentanyl coming across the border.
“No good,” said Flores, who spoke to NY1 in Spanish. “We’re talking about 25%. Can you imagine that? It’s too much. It won’t hold. The economic situation of this country can’t take it. It’s a high tariff.”
Flores believes Trump’s tariffs will force wholesale distribution companies to increase their prices, ultimately passing the new tax to New Yorkers who will have to grapple with even higher grocery prices.
“The tomatillo right now is $23 [per box]. And with the 25% tariff, it’s going to increase to $30, $32. And that’s going to affect the community. The buyers and also the distributors,” Flores said.
Truck driver Victor Barreto, who delivers produce from Mexico to the city’s bodegas, says businesses are already hurting as is — even without new tariffs.
“They’re ordering much, much less, that’s what I’m [telling] you. They order less because it’s too expensive,” Barreto said.
The president insists the tariffs won’t lead to higher prices at home. Some experts, however, believe there will be some pain for consumers.
“These tariffs are ultimately designated to raise $1.5 trillion for the U.S. Treasury over the next 10 years, so in the long run, they could be beneficial to the U.S. economy, but in the short run, they’re going to hurt consumers,” Caleb Silver, editor-in-chief of Investopedia, said.
Trump says he also plans to add tariffs on oil and gas later this month, so grocery prices may not be the only potential cost increase for New Yorkers.