🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Under tariff threat, US wholesaler warns: 'People will pay'

Published 11/27/2024, 06:14 PM
Updated 11/27/2024, 11:00 PM
© Reuters. FILE PHOTO: A man arranges produce at Best World Supermarket in the Mount Pleasant neighborhood of Washington, D.C., U.S., August 19, 2022. REUTERS/Sarah Silbiger/File Photo

By Jackie Luna

LOS ANGELES (Reuters) - While most of Los Angeles sleeps, 58-year-old Melquiades Flores starts his day at 1 a.m., supervising the unloading of produce at M&M Tomatoes and Chile Company, the wholesaler he started in 2019.

But the business that Flores hopes to pass to his children one day is bracing for a disruption.

U.S. President-elect Donald Trump has pledged to impose a 25% tariff on all imports from Mexico and Canada when he takes office on Jan. 20, plus an additional 10% tariff on Chinese goods.

"Produce of Mexico" is stamped on almost all the boxes of tomatoes and chilies that arrive at Flores' downtown warehouse, destined for homes, hotels and restaurant kitchens across the city.

"People will have to pay a higher price. Whatever they charge us, we will pass on to the consumer," Flores said from his section of the larger complex, the Los Angeles Wholesale Produce Market.

No matter what happens in January, Flores says he has no option but to keep importing produce from Mexico, especially in the winter. The chili-growing season in California lasts four months, from August to November, he says. The rest of the year, he gets the produce from the Mexican states of Sinaloa, Baja California and Sonora.

His team stacks boxes upon boxes of tomatoes in every size and shade of red, plus some shiny green ones for making zesty tomatillo sauce.

"Any tariff is an added tax that impacts all of us, including those who buy a pound, two pounds, or a thousand or 10,000 pounds," said Flores, who has lived in Los Angeles for 40 years and is originally from the Mexican state of Morelos.

Trump has pronounced his love of tariffs, presumably for raising revenue and protecting U.S. industries against imports, but he avoids speaking about the inflationary effect or the impact of potential retaliation from the United States' top three trading partners.

Officials from Mexico, Canada and China and major industry groups have warned that the tariffs Trump proposes would harm the economies of all involved, cause inflation to spike and damage job markets.

© Reuters. Melquiades Flores, owner of M&M Tomato and Chile Company, speaks as he stands near boxes with produce, in Los Angeles, California, U.S., November 27, 2024, in this screengrab taken from a video. REUTERS TV/via REUTERS

"The president should have first seen how much this will impact everyone before speaking," Flores said.

(This story has been corrected to say 'chili-growing season,' not 'tomato-growing season,' in paragraph 6)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.