With just a week to go before tariffs are reinstated, San Diego City Councilmember Raul Campillo and local business leaders are calling on the Trump administration to reverse course on tariffs on key trading partners.
On April 2, a blanket 25% tariff on imports from Mexico and Canada is scheduled to go into effect. Officials said during a Wednesday press conference that the levies could have a major effect on everything from food to manufacturing to building materials to medicine.
A tariff is a tax on an imported good paid by companies and usually passed onto consumers — in this case American buyers. The theory behind them is simple: Raise prices on imported goods, and domestic industries will thrive.
Tariffs tried in the United States in the past have led to widespread economic hardship, such as the Smoot-Hawley Tariff Act instituted in 1930, which sparked retaliatory tariffs and collapsing trade. That tariff act was intended to protect American business and became one reason the Great Depression worsened.
“The president calls April 2nd `Liberation Day.’ But let’s be honest – – there’s nothing liberating about raising prices on hardworking San Diegans and putting local jobs at risk,” said Campillo, chair of the San Diego City Council’s Economic Development and Intergovernmental Relations Committee.
“These tariffs threaten everything from groceries to housing to health care costs at a time when many families are already struggling.”
A blanket 10% tariff was put in place against China on Feb. 4 and doubled to 20% on March 4 — affecting around $430 billion in imports, according to the Tax Foundation, a Washington, D.C.-based nonprofit think tank. Additional tariffs have been announced but not enacted against the European Union.
“As an elected representative, I am standing with San Diego’s business community to say loud and clear — this trade war is reckless, and it must stop,” Campillo said.
Local business leaders agreed.
“Tariffs create unnecessary economic barriers that disrupt cross- border trade, increase costs for businesses, and threaten jobs in our region,” said Kenia Zamarripa, the San Diego Regional Chamber of Commerce’s vice president of international and public affairs.
“San Diego thrives on seamless trade with Mexico, our top trading partner, and these tariffs will harm businesses of all sizes.”
For the tariffs going into effect next week, the Petersen Institute for International Economics estimates the cost to the average American household will go up by at least $1,200 annually, although Campillo’s office said that locally, the cost could be up to $2,000 per household.
Investment bank Jefferies‘ experts said the cost of an average vehicle could go up by around 6%, or $2,700, due to the tariffs.
White House Press Secretary Karoline Leavitt on Wednesday announced that Trump was going to impose two more tariffs on imported vehicles this week, likely increasing the above figures.
For an area with a sky-high cost of living like San Diego, those speaking with Campillo Wednesday said the effects could be devastating locally.
“New tariffs on Canada, Mexico and China — America’s largest trading partners — are projected to raise the cost of imported construction materials by more than $3 billion, increasing the price of a new home by $7,500 to $10,000,” San Diego County Building Industry Association chief executive Lori Pfeiler said.
“That’s exactly the wrong approach, especially in San Diego, where we’re already facing a severe housing affordability crisis. We urge President Trump to roll back these tariffs to help build more housing, not less.”
San Diego’s proximity and close economic ties to Mexico is another reason the region is so susceptible to trade wars going wrong. In 2023, more than $63 billion in imports and $33 billion in exports flowed through San Diego, according to Campillo’s office.
“The climate of uncertainty driven by ever-changing trade policies and rising tariffs discourages investment, as companies struggle to plan ahead and San Diego consumers face higher prices on a range of products,” said Alejandra Mier y Teran, executive director for the Otay Mesa Chamber of Commerce.
China has hit the United States with retaliatory tariffs, with Canadian politicians threatening the same. Campillo and the business leaders urged Trump’s administration to pursue alternative solutions before a tipping point is reached.
“San Diego thrives because of trade,” Campillo said. “From our small businesses and manufacturers to our healthcare providers and construction industry, we depend on strong economic partnerships with Mexico, Canada, and beyond.
“These tariffs threaten the economic stability of our region, putting jobs at risk, raising prices on everyday goods, and making it even harder for working families to afford to live here. This is not about partisan politics — it’s about protecting San Diego*s economy. President Trump still has time to change course, and we urge him to listen before it’s too late.”
City News Service contributed to this report.
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