Las Vegas produce distributors worry about possible effects of Trump’s proposed tariffs

LAS VEGAS, Nev. (FOX5) - Talk of tariffs on goods coming from Mexico has local produce suppliers and restaurant workers worried about price hikes, as many items they sell or distribute come south of the border.

If those 25% tariffs go into effect, businesses in the valley could feel the impact of soaring prices. The tariffs are on pause for 30 days.

But it’s not just businesses. Customers could be paying more as well - like at the grocery store.

Several family-owned avocado and produce suppliers tell FOX5 what these tariffs could mean for your wallet.

They’re worried if customers have to pay more for avocados imported from Mexico, they’ll stop buying them at the grocery store or ordering items with the fruit.

For some local suppliers, it won’t just hurt their bottom line. They tell us the most painful part is the uncertainty. Take it from Alejandra Ramirez, who owns ALKO Trading, LLC Las Vegas.

“Right now it’s out of our hands, everyone who has a restaurant and all we’re doing is trying to do our job because it’s the only thing we can do.”

ALKO Trading, LLC distributes produce to restaurants and casinos in town.

“The avocado is the star of our products,” Ramirez tells FOX5. But a good chunk of her inventory comes south of the border, like tomatoes, chiles, and tomatillos.

It’s what’s crossing the border that made President Trump want to impose the 25% tariffs on all goods coming in from Mexico.

Trump cites a national emergency on the flow of fentanyl and undocumented immigrants coming into the country.

Ramirez feels helpless as the world leaders try to iron out a deal.

“Unfortunately, all of these political decisions affect us and we can’t give an opinion or interfere,” Ramirez said.

Someone who has a lot to say on the topic is Luis Chavez, a restaurant server at Picanta Mexican Kitchen in the south valley.

For a new restaurant like this one, Chavez tells FOX5 why the tariffs keep his bosses up at night.

“That’s going to increase our prices. Of course, that’s going to affect us because the customer is going to see a rise in the prices and that’s not going to be good for business, and it’s a new business, you know? We have a couple of months going on, and we’re gonna raise the prices? So, that’s not OK,” Chavez said.

FOX5 caught up with Juan Villasenor of the family-owned company, AAA Produce in Las Vegas as he was delivering avocados to Picanta Mexican Kitchen. He explains how the tariffs could lead to a price hike, not only when you go out to eat, but at the grocery store.

“For example, right now it’s $0.99 compared to if it goes 25%, it’s probably going to be $1.79. People used to buy maybe three to four each or even six avocados,” Villasenor said. “They’re probably buying one or two to eat at that time, so the sales go down.“

To be clear, you don’t pay tariffs directly. It’s whatever U.S.-based importer or foreign-based exporter moving goods across the border. But that adds to the overall cost of the goods.

Tariffs on Mexico could add to the cost of produce, clothing, liquor and auto parts produced there. Again, the tariffs are on pause for 30 days.

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