Days after former President Donald Trump announced a 25% tariff increase on imports from Mexico, Canada, and China, Mexico secured a temporary 30-day exemption.
Mexican President Claudia Sheinbaum agreed to deploy 10,000 soldiers to her country’s border to curb drug trafficking, a move that helped secure the short-term relief. However, concerns remain for businesses that rely on imports from Canada and China.
Local 3 spoke with business owners who say uncertainty looms as they await further negotiations.
“I spoke with about 40 businesses, and most are concerned about the unknown,” Harris said. “Owners say they are unsure how the tariffs will impact their bottom line, and they hope an agreement is reached to prevent financial strain.”
Jess Aldridge, owner of Notch Wood Fab, expressed the cautious stance many businesses are taking.
“We’re just waiting to see what happens,” Aldridge said.
Aldridge, whose timber and wood company primarily relies on domestic imports, noted that even businesses not directly importing from affected countries could experience price hikes.
Brent Smith, owner of Evan’s Lumber, said the potential for inflation in the local economy could drive costs higher.
“If there are inflationary measures put forward into our local economy, I would imagine our prices would reflect that,” Smith said.
Smith has previously experienced the effects of tariffs during Trump’s presidency and said the administration followed through on trade threats.
“He’s a man of his word,” Smith said. “If he says he’s going to do it, he’s more than willing to carry it out. Last time, people thought it was a threat, and he carried out a 25% tariff on China.”
Smith explained that the lumber business operates on high volume and low margins, making tariffs particularly challenging. He warned that industries beyond timber—such as alcohol, oil, and gas—would also be affected.
“If you’re building a house and you haven’t contracted your prices yet, that’s a risk you’re going to have to take,” Smith said. “Prices will go up, our costs will go up.”
While some businesses may try to source materials from other countries to bypass tariffs, Smith cautioned that the process is neither quick nor easy.
“You have to go visit the manufacturer, do a quality assurance analysis, find a manufacturer—that could take a year,” Smith said. “You have to get samples shipped back and forth and then get your customer’s approval.”
Business owners remain hopeful that negotiations will lead to a resolution before the increased tariffs take effect. If no agreements are reached with Canada and China, consumers could start seeing price increases within weeks.
“It’s always wait and see,” Smith said. “You’re really defenseless. There’s not much you can do.”
For now, businesses are bracing for potential cost increases while keeping a close eye on trade developments.
