Tariff's proposed by Trump worry RGV residents and businesses

PHARR, Texas (ValleyCentral) — During his campaign, President-Elect Donald Trump promised to raise tariffs on foreign items imported into the country.

However, some businesses are worried this could lead to a price increase for customers.

A spokesperson for Trump says the tariffs will create jobs and spur investments.

Teclo Garcia, CEO of the Mission Economic Development Corporation says tariffs are simply another tax.

"Usually, it is a tax on goods coming into the country," Garcia said.

He adds that companies that make those goods pay the tariffs and then pass on the expense to consumers, which causes many to worry about a rise in prices.

He says this can impact any products made in a foreign country that are brought to the United States.

“That tire that cost $100 may now be $125 or $110 or $150, and that goes to say for a lot of goods going in and out of the country," Garcia said.

During the presidential campaign, Trump proposed a 10% tariff on all U.S. imports as well as a 60% tariff on products from China.

However, Garcia says tariffs are nothing new. Trump imposed tariffs during his first time in office, and the Biden Administration kept them.

Yet, with inflation still on the minds of many people, this has many worried.

One of the biggest retailers in the U.S. says it has been dealing with tariffs for years.

Walmart in a statement said: “We're concerned that significantly increased tariffs could lead to increased costs for our customers at a time when they are still feeling the remnants of inflation. We never want to raise prices, especially when customers have experienced years of inflation, so we will work with government officials and our suppliers to minimize the impact on our customers."

Many Rio Grande Valley consumers are concerned.

“Who will pay for all the price increases is the consumer, and the truth is I don't agree," said McAllen resident Marianela Sauceda. “All the necessary items, not counting clothing, have increased incredibly. And the amount of money one receives is still the same."

McAllen resident Luis Aguilar agrees and believes that more tariffs only hurt international trade agreements.

“The whole purpose of the free trade agreement was to lower the tariffs and eliminate them," Aguilar said. "If he is going to do that, then that will devastate the Valley.”

Garcia says Canada is also concerned about how tariffs can impact trade relations. Tariffs can sometimes help domestic businesses profit; their items are cheaper to sell in comparison to products that are imported.

However, he says right now, it is time to wait and see what the new administration does.

“International trade is extremely important to the Valley economy, anywhere from trucking to warehousing, to all the subsidiaries. They are businesses that live off of trade," Garcia said. "So this is important to us, and we're keeping an eye on it.”

Trump takes the oath of office on Jan. 20. and there is no date set when any new tariffs will be implemented.