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SIOUX FALLS, S.D. (KELO) — President Donald Trump is moving to impose tariffs on imports from Canada, Mexico and China, which could affect prices on gas, auto parts and avocados, among others.
Since the initial announcement Saturday, the 25% tariff on imports from Canada and Mexico has been paused.
The return of the Sioux Falls Fighting Wiener Dogs
According to the White House, Trump’s decision to impose tariffs is to hold Mexico, China and Canada accountable to their promises of stopping illegal immigration and fentanyl from coming into the United States.
“We may have short term some little pain, and people understand that, but long term, the United States has been ripped off by virtually every country,” Trump said Sunday.
Although Trump has paused the tariffs with Canada and Mexico for a month, if they do end up being enforced, it could have a negative impact on restaurants like Puerto Vallarta and Casa Del Rey in Sioux Falls.
“A 25% tariff, we’re not talking a three, six, seven percent increase. 25%, that’s real money,” Casa Del Rey president Tate Eining said.
“I think it’s no good to anyone, especially the customers who are coming to the restaurant because we try so hard to have good prices,” Daniel Gutierrez of Puerto Vallarta said.
Eining says the tariffs could affect pricing on items imported from Mexico.
“The biggest things would be your food costs. We use a lot of avocados. We use it in guacamole. 80% of our beers are imported beers. Tequila can only be manufactured in Mexico, and all that is stuff that we carry a lot of,” Eining said.
For now, both restaurants will do what they can to prevent prices from increasing.
“We try and find the best prices for them to keep our prices low,” Gutierrez said.
“Restaurants try all the time to not have to pass additional costs on to the consumer, but at some point, you have to pass it on. There’s nothing you can do about it,” Eining said.
The pause on tariffs with Canada and Mexico came after both countries agreed to reinforce their borders.
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