Mexican import tax likely to affect prices of food and other goods

Stores like Vallarta Supermarkets in Santa Maria import about 70 percent of the products they stock from Mexico. Store managers said this tax increase would affect them and many other small businesses in Santa Maria but that all of those expenses would eventually be passed on to the consumer.

Small markets like La Favorita, La Chiquita, Fruteria Hernadez and many others depend on imported goods from Mexico.

"I believe it makes the people feel kind of like at home, seeing all the products from Mexico," said Vallarta manager Daniel Valdovinos.

Gabriela Martinez owns a market and a smoothie stand at the Santa Maria Town Center Mall. She said 80 percent of her fruits and vegetables are imported weekly.

Not only does she sell the products at her store, Martinez also sells them to restaurants, which she said would also be affected if the tax on imports was increased.

The manager at Tortilleria Mexico restaurant said prices per plate would need to go up, as would the price for their beer.

"Prices are continually rising and with this 20 percent increase it's going to affect us drastically with our sales," said manager Erik Rocha.

According to the U.S. Census website, the goods that the United States imported from Mexico in 2016 were worth about $60 billion more than the goods it exported to Mexico. Exports were $211,848.7 and imports were $270,647.2.

"Fruit and vegetable prices will go up, Mexican beer prices are going to go up, tequila prices will go up and Mexico would not pay for the wall, the consumers would be paying for the wall," said Orcutt resident Stephen Siemsen. "Except, instead of through our federal taxes, we pay it through our grocery bills."

While President Trump is considering that 20 percent tax, he said he's also considering other options.

Source:KSBY