Trump’s trade war is back on. Here’s how tariffs could hit your wallet
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Good morning. Here’s what you need to know to start your day.
- Trump’s tariffs are here. What it means for some of California’s most beloved products.
- Rain — and a small chance of weak tornadoes — is coming to Southern California this week.
- The best L.A. spots to sip a classic martini in style.
- And here’s today’s e-newspaper.
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How Trump’s trade war could hit your wallet
After earlier threats and a last-minute pause in February, President Trump’s North American trade war has begun while the tariff battle with China escalated.
The president on Tuesday imposed 25% tariffs on imports from Mexico and Canada, though Canadian gas and oil imports will be taxed at 10%. Trump also doubled his earlier tariff on Chinese products, which now stands at 20%.
Despite Trump’s insistence that tariffs are paid by the foreign countries they’re imposed on, the reality is that importers — U.S.-based businesses — will be paying these tariffs. And to offset paying 25% on imports of the same products, those businesses are expected to start charging customers more.
As the nation’s most populous state and one that consumes a lot of products from our neighbor to the south, experts warn Californians should brace for sticker shock on food, drink, cars, housing and more. Here’s what to expect.
Some nuts, vegetables and fruits — including the beloved avocado — will cost more.
The U.S. imports a lot of Mexican-grown produce. While California is an agricultural giant, it can’t meet the nation’s demand for fruits, vegetables and nuts alone.
With it now costing U.S. importers more to bring that produce across the border and into stores, you may soon be paying more for tomatoes, strawberries, raspberries, peppers and avocados.
Not our avocados! The beloved, temperamental fruit is a staple in Mexican cuisine, sushi and brunch.
“Californians are the nation’s top consumer of Mexican avocados, importing $602 million of the Hass varietal in the 2023-24 fiscal year,” Times reporter Seema Mehta explained this week, citing a report by Texas A&M professors for the Mexican Hass Avocado Import Assn.
Your next margarita or Mexican beer could run up your tab faster.
Americans — but especially Californians — drink the most tequila, which can be called tequila only if it’s grown in Mexico. Modelo has been the top-selling beer in the U.S. since June 2023.
That means sipping that tequila- or mezcal-based cocktail or grabbing a six-pack of your favorite Mexican lager will likely set you back more soon.
(Sidenote: There’s an emerging agave spirits industry in California, and it will be interesting to see if their bottles start taking more shelf space in the coming weeks — or however long this trade war lasts).
Canadian whisky is also subject to the new tariffs, so brace yourself as you pick up that bottle of Crown Royal.
Car prices, homebuilding and Chinese-made products will be affected soon.
“U.S. auto manufacturing is deeply intertwined with Mexico and Canada, with parts crossing the border many times,” Times foreign correspondent Kate Linthicum explained this week. “Now, those parts will be taxed 25% every time they enter the U.S.”
As current inventories are sold off and new cars come off the lines, prices at dealerships will likely increase, she noted.
Canada is the largest supplier of lumber to the U.S., which worries homebuilders, since it will now cost more to address the housing crisis in California — especially as thousands prepare to rebuild after January’s devastating L.A. County fires.
And with so many household items made in China, prepare to pay more for a variety of appliances, toys, electronics and more.
Our biggest trade partners are slapping back.
China was quick to retaliate Tuesday, announcing broad new tariffs on U.S. agricultural, dairy and meat products.
That same day, Canadian Prime Minister Justin Trudeau imposed 25% tariffs on $20 billion of U.S. goods produced in Republican-controlled states. He said a broader round of tariffs was in the works.
Mexican President Claudia Sheinbaum also said tariffs on U.S. goods will be coming. But she won’t share details on what products will be affected until Sunday, telling reporters she hopes to speak with Trump before then.
As Kate reported this week, Mexico will likely be hit hardest by the trade war.
“The country’s economy is already on shaky ground. Mexico faces its largest budget deficit since the 1980s,” she wrote. “Analysts say that if tariffs drag down the Mexican economy, more Mexican workers without proper documentation will seek to enter the U.S.”
Today’s top stories
Transgender Americans weigh leaving U.S. over Trump’s policies. Some already have
- Transgender Americans fear a slate of Trump administration policies targeting gender-affirming medical care and U.S. passports that recognize their identities.
- Many are now making plans to flee the country, or have already done so. They are saving money, getting travel documents in order, considering foreign jobs and even applying for asylum abroad.
Asylum requests surge in Mexico amid the U.S. border crackdown
- Over the last decade, the annual number of asylum applications in Mexico has grown a hundredfold.
- There are growing fears that Mexico’s asylum system is unprepared to deal with the increase.
Takeaways from Trump’s speech to Congress
- Trump’s address featured a slew of false claims, such as the assertion that U.S. citizens that are hundreds of years old are receiving Social Security checks.
- He also said that the prosecutions against him in his four years out of power fueled his return to the White House.
- Read more on Trump’s address to Congress in which he gave himself high marks.
What else is going on
- Rain — and a small chance of weak tornadoes — is coming to Southern California this week.
- Cal State Long Beach athletics staffers stole thousands from the school, D.A. says.
- 30 L.A. County probation officers have been indicted over ‘gladiator fights’ at juvenile halls.
- A California lawmaker seeks to expand protections for temporary migrant workers.
- New test score labels seek positivity, ditching the term ‘standard not met’ for ‘below basic.’
- ‘Just a regular guy’: Gene Hackman enjoyed a quiet, simple life in Santa Fe, until tragedy struck last week.
- The Trump administration dramatically cuts staff at a water agency in California.
- A California deputy seized fentanyl during an arrest, then OD’d while on duty, a report says.
- Spotted owls are disappearing fast, and federal cuts could mean no one’s left to count them.
- ‘60 Minutes,’ the Associated Press, an Iowa newspaper: Trump’s attacks on the media reach new heights.
- An ethics violation has been lodged against the former CalRecycle director.
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Commentary and opinions
- Here’s the key to understanding Donald Trump’s approach to the Ukraine war, columnist Jonah Goldberg writes.
- How the Carolina wildfires are, perversely, good news for California, writes columnist Michael Hiltzik.
This morning’s must reads
In pursuit of the perfect martini. No, there is no coffee. Yes, there is vermouth. What is the perfect martini? No such thing exists, writes restaurant critic Bill Addison, because perfection is inert and a martini is anything but. Like a pizza, the martini dies a quick death. The first sip is everything, and then the temperature rises. And the proportions, measured by human hands, will be different every time, however microscopically. Its existence hinges on variability.
Other must reads
- After decades in prison, he transformed himself into the Inland Empire’s homeboy news anchor.
- The (baby) eagle has landed! Big Bear bald eagles Jackie and Shadow welcome two hatchlings.
How can we make this newsletter more useful? Send comments to [email protected].
For your downtime
Going out
- 🍸The best L.A. spots to sip a classic martini in style.
- Tarantino’s cinematic universe as live cabaret show? Welcome to L.A.’s new CineVita.
- 🖼️It’s raining men at the Getty’s survey of Impressionist painter Gustave Caillebotte — on display through May 25.
Staying in
- 🎧It’s been six weeks since the Times launched the Boiling Point podcast. Here’s how to listen to the great conversations.
- 🍸 Here’s a recipe for Bill Addison’s Perfect Martini.
- ✏️ Get our free daily crossword puzzle, sudoku, word search and arcade games.
A question for you: What’s your favorite local restaurant?
Jean Waller writes: “It’s got to be Malibu Seafood! Not only is it the best deal for the best seafood and the best view, it’s quintessential California. Hoping they survive the setbacks after the Palisades fire and road closures on PCH.”
Email us at [email protected], and your response might appear in the newsletter this week.
And finally ... your photo of the day
Show us your favorite place in California! Send us photos you have taken of spots in California that are special — natural or human-made — and tell us why they’re important to you.
Today’s great photo is from Paul Ventura of Mission Viejo: Saddleback Mountain.
Paul writes: “Saturday morning, Feb. 22, my friend Eric and I hiked up Laurel Canyon Trail to reach Bommer Ridge. Since it was such a clear day, the color of Saddleback Mountain jumped out in the blue sky.”
Have a great day, from the Essential California team
Ryan Fonseca, reporter
Defne Karabatur, fellow
Andrew Campa, Sunday reporter
Kevinisha Walker, multiplatform editor
Hunter Clauss, multiplatform editor
Christian Orozco, assistant editor
Stephanie Chavez, deputy metro editor
Karim Doumar, head of newsletters
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