PRESIDENT DONALD TRUMP’S tariffs have begun to hit the economy, and one congressional lawmaker heard fear, frustration and anger from local businesses during his trip to San Jose.
Rep. Jimmy Panetta, who sits on the House Subcommittee on Trade, introduced legislation to ensure Congress, not the Trump administration, decides who imposes broad tariffs. In partnership with the San Jose Chamber of Commerce, Panetta hosted a discussion Friday with local leaders and businesses to learn more about the impact of these new trade policies. Increased tariffs have already disrupted supply chains and increased costs on imported goods and materials.
Panetta invited an array of businesses — from auto dealers and gas stations to housing developers, restaurants and grocery stores — to hear their stories. He vowed to take their input to Washington, D.C., to convince his colleagues to reassert their authority over trade policy.
“These mindless, careless and reckless policies from President Trump across the board, average out to 24% tariffs. It’s important to hear from people in the South Bay … about the impacts of that policy,” Panetta told San José Spotlight.
Fighting for survival
Connie Alvarez, president of the Alum Rock Santa Clara Street Business Association, wants to see the city step up and help small businesses fighting for survival.
“These businesses in our corridor, they are not going to last,” she told San José Spotlight. “They are not going to be able to stand two, three, four months. Who’s going to help the small businesses that … bring culture to the city?”
District 1 Santa Clara County Supervisor Sylvia Arenas said it’s important for the city and county to help stabilize small businesses, many of which are minority owned. Last year, she set up a business association in her district and recently established an Office of Economic Development.
“It’s important for us to have these small businesses voice their concerns directly to our congressman, so he can continue to have that ability to relay their stories on a national level,” Arenas told San José Spotlight. “When we have this friction with other countries, our small businesses are feeling it every which way. It’s important for us to continue to be supportive.”
Mark Normandin, president of Normandin Chrysler Jeep Dodge Ram FIAT, didn’t cut corners when he said the cost of cars will increase because U.S. automotive manufacturers rely on foreign parts — and those costs will end up being passed on to the buyers. He said production will slow down.
Small businesses are feeling the pressure. Owners and managers said after swallowing these additional costs, they have to pass them onto consumers or close their doors.
“I feel like they actually have dropped a bomb on small business,” Lupe Lopez, owner of Arteaga’s Food Center, said. “We already have so many challenges. We import from all over the world. Every single person nationwide is going to pay the price and it’s not fair.”
‘We are suffering’
Others like Zach Adelman, managing director of Sunset Fine Foods, said the tariffs have already affected business.
“We are suffering,” he said. “I’ve spent the last two weeks figuring out what we’re going to do about Mexican tariffs. On Wednesday, we get Peruvian tariffs. Now we have to quickly move … to figure out how we overcome a 10% hit. This can knock us out of business in a matter of months. We can’t wait. This has to change right now.”
Cosme Fagundo, a McDonald’s franchisee, expressed frustration Congress didn’t respond faster. Fagundo said accessing potatoes, produce and coffee will become more difficult. The fast-food industry is already hurting with the minimum wage increase and now faces raised costs for building materials and construction, Fagundo said.
“This can knock us out of business in a matter of months. We can’t wait. This has to change right now.” Zach Adelman, managing director of Sunset Fine Foods
Developers like Vince Cantore, vice president of development for the Core Companies, is concerned how cost increases will affect housing.
“We’re already starting to see the impacts. Building material price increases, yeah, that’s what we’re dealing with,” he said. “We’re getting notices warning of price escalation to come … from plumbers, electricians, framers. There’s going to be a depression in housing delivery, particularly with affordable housing.”
Contact Lorraine Gabbert at lorrainegabbertsjspotlight@gmail.com.
This story originally appeared in San Jose Spotlight.