SAN DIEGO — San Diego’s border industry is thankful for the delay in some tariffs proposed by the Trump administration, but they are still preparing for the worst.
Bali Express Services owner Juan Baez said his transportation company specializes in moving electronics and medical equipment, connecting the factories in Mexico to the U.S.
“It is a big business,” Baez said. “We do between 300 to 400 border crossings a day.”
Baez is thankful that President Trump agreed to pause the 25% tariff against Mexico for 30 days after Mexico agreed to boost border security efforts. Baez estimates that the tax on imported goods would cost him half his business if levied against Mexico.
“We work for the biggest electronic companies in the world,” Baez said. “They have factories in Tijuana and they are planning to go back to Malaysia, Thailand and Vietnam in case this tariff goes into effect next month.”
President Trump imposed tariffs on all steel and aluminum imports that will go into effect next month, a decision condemned by the European Union, Mexico and Canada.
Joaquin Luken, with Smart Border Coalition, said Otay Mesa is California’s largest commercial land port of entry and does more than $68 billion in trade every year.
“We’re on the frontline of anything that affects us that’s either done in Mexico City or in Washington D.C.,” Luken said. “We’re a thousand miles away, but we’re feeling the effects right away. We’re on the front lines.”
He says the steel and aluminum tariff could hit consumers with an increase in the price of things like automobiles and electronics and could cause layoffs for the companies who operate in the region.
Luken believes President Trump will continue to use tariffs throughout his term, leaving this region bracing for the possibility of Mexican tariffs later this year.
“If tariffs are a negotiating tactic, I think that will continue to be the case to try to get smaller wins for the U.S. Administration,” he said. “We really, really need to focus on this symbiotic relationship that we have and just keep the economic prosperity flowing on both sides of the border.”
According to Mauricio Diaz, the president of the Otay Mesa Chamber of Commerce, they are confident that Canada, Mexico and the U.S. will negotiate a long-term agreement in the near future to strengthen trade between the three countries.
“The main issue that the trade community has with the tariffs is the uncertainty of what is to come,” Diaz said in a statement. “If there is not a long-term solution past the March 3rd deadline, this would potentially impact our trade community in Southern California. This would lead to higher prices on all goods for the American consumer and less service jobs in warehousing, freight forwarding, customs brokerage and trucking industries. This is evolving by the minute, with new tariffs and threats seem to come out daily.”
Baez has created a backup plan to move his trucks to Los Angeles and focus on domestic transportation, but he hopes he can continue operating in the region he loves.
“It’s not only about business. California and Baja are being connected in some cultural stuff, friendship that has been going on for over 100 years,” Baez said. “It is always a pleasure to deliver goods all over the United States from the factories in Tijuana. I love international business.”
President Trump stated that he delayed the tariffs because the Mexican president agreed to send 10,000 National Guard soldiers to the border to stop fentanyl trafficking.