SIERRA VISTA, Ariz. (KGUN) — According to the Office of the United States Trade Representative, in 2022 the U.S. imported $294 billion in goods from Mexico. President Donald Trump has discussed enacting tariffs on Mexico, causing concern for some small business owners.
“It’s a domino effect," said owner and founder of El Mercado Manny's, Alicia Buckhanan. "(If) something goes up, the next thing goes up too.”
She says 70% of the products in the store come from Mexico, which means any tariff that President Trump puts on Mexico will affect the business and anyone who shops at the store.
“Even crossing at a border and bringing them all the way from Mexico, it is cheaper than buying it over here,” Buckhanan said.
She opened her business in September of last year, filling a need in the west end of Sierra Vista.
"We have a food desert in this area,” Buckhanan said.
That's why she opened the store at that location. She says the most popular items in her store are from Mexico, including tortillas, produce and meat.
“Buying the products in Mexico is cheaper because over there,... the labor is cheaper, the raw materials are cheaper," Buckhanan said. "So at the end of the day, our product cost is cheaper.”
Simply defined, a 25% tariff means a 25% increase in cost for items in the US—at her store and others across the country.
"Our business is going to be affected exactly by the amount that they're talking about," Buckhanan said. "We had to put in a little margin to make a profit, and that is going to be increasing on a family.
“It affects our sales because they don't want to pay higher prices, so people have been saying we have the higher prices and they don't like that..”
She says it will ultimately affect what they stock.
"If the price is too high, it's not going to be feasible to sell it," Buckhanan said. "What's going to happen, the shelves are going to start getting emptier on those products. They're not going to be able to reach that price.”
She says they have to be ready by stocking up on chips, candy, spices and other items that can be stored for longer periods of time— so she can sell them at the lower price.
"Our number one producer is Mexico," Buckhanan said. "We have all (this) great stuff, thanks to Mexico. Being so close to the border, that's an advantage for Cochise County.”
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Alexis Ramanjulu is a reporter in Cochise County for KGUN 9. She began her journalism career reporting for the Herald/Review in Sierra Vista, which she also calls home. Share your story ideas with Alexis by emailing alexis.ramanjulu@kgun9.com or by connecting on Facebook.
