10% tariffs go in effect, spark concerns for Bay Area businesses, shoppers
10% of tariffs go into effect, causing concern for Bay area businesses
President Trump's new 10% baseline tariffs went into effect Saturday, raising concerns among businesses and consumers about higher costs. Tariffs are taxes Americans pay on imported products.
SAN FRANCISCO - President Trump's new 10% baseline tariffs went into effect Saturday, raising concerns among businesses and consumers about higher costs. Tariffs are taxes Americans pay on imported products.
Economists warn that while the tariffs may bring manufacturing jobs back to the U.S., they could also drive up labor costs and increase prices for everyday goods.
The impact on local businesses
Vendors at the Ferry Building’s Farmers Market in San Francisco say they are feeling uneasy as the universal tariffs took effect.
"At first, I thought it wouldn’t affect us, but it affects everyone. I don’t think it’s a good idea," said Norman Gunsell, who, along with his wife Aimee, operates Mountain Ranch in Calaveras County.
They sell locally grown fruits, vegetables, and meat.
Norman added that while their farm does not rely heavily on imports, they still need to buy essential items to support their business.
"Basic hardware items and things. We function on our farm that I've lived on since I was 15, so much of the infrastructure is already built. I built it when I was very young. But we do have to buy barbed wire, T-posts, plastic pipes - all these things are imported," he said.
Even though many products at the market are locally grown, raw materials and equipment like fertilizer and farming tools come from abroad, adding strain to small businesses.
Trump remained firm on his stance regarding the tariffs, calling it "an economic revolution" on social media and urging Americans to "hang tough." He argued that the tariffs will bring manufacturing jobs back to the U.S. and boost domestic production.
Shani Jones, owner of Peaches Patties, uses compostable to-go boxes and imported Jamaican seasoning for her fresh, homemade patties.
"Already before the current administration there was inflation, but the tariffs - most of the compostables and stuff, they come from China - and I know they're getting tariffs set upon them, so we're just going to wait and see," Jones said. "But it may impact our business, where we will have to go up with our prices," she said.
Jon Ramsey, a Carmel resident, expressed frustration about the increased costs.
"That's what disgruntles me, that we, the consumer, the average person, are going to pay extra for everything, and it wasn't my understanding that that was going to be the case when the new administration came into place," he said.
When asked if he expected prices to be lower, he responded, "I expected prices to be lower, that's exactly what was supposed to happen."
Ramsey is in the final stages of building a new home.
"Canada, I know a lot of our building materials come out of there. A lot of our appliances are assembled in Canada. So many goods come from out of the United States. That's great. I'm all for it, I'm all for ‘Made in America’, but I'm all for affordability."
The higher tariffs officially go into effect on April 9, so the economic ripple effects are just beginning to be felt.
The Source: KTVU Interviews, Associated Press