Tariffs 'not major worry' yet for RGV businesses

PHARR, Texas (ValleyCentral) — President-Elect Donald Trump has vowed to use his first day in office to impose heavy tariffs on products imported into the United States from Mexico, Canada and China.

While some are worried about the tariff's impacts on the Rio Grande Valley. Other business leaders say they will wait-and-see on what it will mean for the Valley’s international trade.

Experts say now is not the time to worry, and it is too early to know if the president-elect will follow through on his tariff threats.

Dolores Silva, a Mexican customs broker who has worked in Hidalgo for over a decade says she firmly believes only certain products that use many components from places like China will be affected.

"Let us not get scared," Silva said. "I trust that the president and the American government will make the most intelligent decision for the American economy.”

Trump shared on social media that he would implement the tariffs on the day he takes office with an executive order.

"Mexican products that are breaking the rules when entering the United States will be the ones affected," Silva said. "It can’t be for all products in my opinion.”

The proposed taxes would be a 25% increase to products coming into the U.S. from Mexico and Canada.

Trump says he will implement the tariffs until the countries can cut the flow of immigrants and drugs. Andy Carey, who is the director of the U.S.-Mexico Border Philanthropy Partnership (BPP), says immigration is already down.

As for drugs, he says they either enter through other ports of entry more than border land ports.

"And you know, there's fentanyl and other illicit contraband does get across the border, but a majority of it is coming through the LA airport and JFK Airport and Chicago's O'Hare airport," said Carey. "It's not coming in across the border in the numbers they talk about. They're also pushing a narrative about immigration to 21 million people. That's nowhere near the numbers.”

Carey says that any tax increases will be met with countries responding with their own tariffs as well. Ultimately, this could affect jobs and investment in American products.

Mexico’s President Claudia Sheinbaum has said her country will retaliate if Trump imposes the tariffs.

According to the census, the U.S. is the largest importer of goods in the world and Mexico, China and Canada are its top three suppliers.

The Pharr-Reynosa International Bridge has been the number one port for produce in the entire country.