Local economists are cautioning that President Trump’s new tariffs will result in higher prices for numerous goods in San Diego, with some increases taking effect immediately.
Kyle Handley, an associate economics professor at UC San Diego, thinks the effects will initially show up in supermarkets. “Most avocados are imported… as well as bananas,” he stated. “Another crucial point regarding avocados and bananas along with perishable goods is their low storage capability, which means there aren’t significant stockpiles to rely upon.”
Other edibles anticipated to experience rapid price jumps encompass coffee and chocolate. According to Hisham Foad, who is an associate economics professor at San Diego State University, he elucidated, "Since we lack the suitable climate for their production locally, these are the sorts of products where I foresee substantial rises in costs."
Although new car prices might remain relatively stable over the next several months, many goods imported from China are expected to get pricier shortly. This category includes products such as electronics, toys, and footwear. Additionally, consumers should anticipate higher costs for components used in computers sourced from Taiwan and Vietnam, machinery utilized in construction coming out of Japan, along with apparel and accessories produced in India.
The effects of tariffs could go further than just affecting new buys. As Handley pointed out, even items individuals purchased well before the onset of the trade conflict might become hard to substitute or fix—moreover, these repairs will likely incur higher costs, which consumers probably haven’t anticipated.
Economists highlight that tariffs disproportionately affect individuals who live from paycheck to paycheck, since minor price hikes often necessitate difficult financial decisions for them. On Thursday, the Dow dropped over 1,600 points, an event economists interpret as indicative of market unease due to the imposition of these tariffs.