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US, Mexican consumers concerned about tariffs

2025-02-08 19:47:40, Kosova & Bota CNA

The imposition of 25 percent tariffs on Mexican products has been postponed for now, but as Voice of America correspondent Victor Hugo Castillo reports, consumers and traders of Mexican products are concerned about the financial impact the tariffs could have if President Trump were to allow them to take effect.

Oscar Garcia is one of the 65 million retired Americans who live on income from Social Security benefits.

As he walks through the aisles of grocery stores, he worries about a possible price increase for Mexican products if President Trump's administration were to impose 25% tariffs.

"What will people with low incomes do? If we used to eat meat twice a week, now we will have to cut it down to once a week or maybe we won't be able to afford it at all," says Oscar García.

In the last two years, Mexico has been the United States' top trading partner, followed by Canada, according to US authorities.

The trade relationship between the two countries is evident at the border crossings, where thousands of trucks of goods pass through daily.

Mario Garcia, who works for Majef Produce in McAllen, Texas, which specializes in imports from Mexico, says he is concerned about the difficulties the tariffs could cause for his business.

"Most stores rely on Mexican products. So what happens if the prices of products imported from Mexico increase and the cost is passed on to the consumer? That would cause a chain reaction," he says.

President Trump has said he will use the tariffs to help his administration's plans to stem the flow of drugs and illegal immigrants into the United States.

On February 1, he announced 25% tariffs on Mexico and Canada, but temporarily postponed them after the leaders of those two countries agreed to strengthen border security.

Imposing tariffs would affect supply chains, warns Roberto Cruz Hernandez of the National Chambers of Commerce in Mexico.

"Many transnational companies, many of them American, that manufacture or assemble products in our country will also be affected by the additional costs that these tariffs would bring," he says.

While manufacturers and importers would feel the direct impact, American consumers like Hilda Gonzalez believe they will see the effects in higher prices.

"Businesses will raise product prices and who will pay the difference? We will pay," she says.

If the tariffs go into effect, retirees like Garcia fear they will have to cut their spending even further. For others, it means they will have to work harder to buy what they need./ VOA