SAN DIEGO (Border Report) — With the threat of 25% tariffs by President Trump on Mexican and Canadian products looming, business leaders in Baja California say it will lead to many firms closing down and higher unemployment.
Isaac Vega Álvarez, director of Baja’s commercial index, says the losses will be felt more along the border in cities such as Tijuana.
“It won’t be an immediate impact, but there will be effects in the short term and long term, particularly in regions heavily dependent on industry,” Vega Álvarez said. “Along the border, if tariffs are imposed, it will affect job opportunities and the price of many products will rise.”
He also said it’s unlikely Mexico will follow through and set similar tariffs on American products, calling it a “low probability.”
Vega Álvarez said consumers on both sides of the border will be the ones who will pay for the tariffs as “things will have to be overpriced.”
Trump says the tariffs are an incentive for both Mexico and Canada to do more to combat the flow of drugs into the United States, especially fentanyl.
Unless he changes his mind, the tariffs are to go into effect Feb. 1.
“Let’s hope both countries can have major negotiations instead of economic commercial battles because no one is prepared to deal with the consequences,” Vega Álvarez said.
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