AUSTIN, Texas — With President Donald Trump reaching a deal with both Mexico and Canada to delay tariffs by 30 days, the higher tax on imports from China is expected to go into effect Tuesday.
There is a wide range of products that will be impacted, from food and drinks to fuel and energy, as well as cars, steel, lumber, electronics, home appliances and toys.
In Central Texas, pressure is building for the construction industry with the possibility of a looming trade war.
Frank Fuentes is the chairman of the U.S. Hispanic Contractors Association. Before the pandemic, Fuentes said they were buying supplies from places in the Pacific like China and Korea.
“After the pandemic, we started looking towards Mexico – cement, steel, scaffolding, equipment, electrical parts like transformers, switchgear,” Fuentes said. “Now with these tariffs, American companies that produce these things in Mexico, we’re concerned that they might shut down because it’s going to increase everything by 25%.”
Fuentes is now concerned about how this will trickle down to the consumer.
“If the building costs more, you’re paying more for rent, or you’re paying more for your home,” Fuentes said.
Leaders in the restaurant industry are raising similar concerns, like Guadalupe Barragan, who manages Casa Chapala. Barragan said his team is making plans in case the tariffs go through.
“I think it’ll be a lot harder. You know or, we just probably have to work limited menus or things like that, you know, so be a little more selective,” Barragan said. “Improving our systems locally, right here and inside the restaurant and be just more conscious of what we buy and how we use it, and improving procedures in the kitchen.”
These leaders are keeping an eye on our nation’s capital as they wait to see how things play out.
“That’s a chess game that’s being played at much higher levels. All we can do is row, row with the waves, right?” Fuentes said.
The Texas Restaurant Association also sent a statement on the possible tariffs:
“The Texas Restaurant Association continues to monitor the evolving situation on tariffs. As trade policies shift, we remain committed to working closely with our partners at the National Restaurant Association to educate policymakers on the impact that specific tariffs could have on America’s food, restaurant equipment supply chain, and consumers—particularly since wholesale food prices already stand 35% above their pre-pandemic readings. Unfortunately, increased food costs will ultimately be borne by consumers at restaurants and grocery stores.
“In the meantime, we continue to urge foodservice businesses to regularly communicate with their suppliers about their products and potential alternatives so they can be as prepared as possible to maintain their guest experience while they continue to adapt to a changing marketplace.”