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Sierra Vista grocery store sees declining sales, increasing costs, despite delayed tariffs

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SIERRA VISTA, Ariz. (KGUN) — A 30-day extension on tariffs to Mexico was supposed to be good news. Alicia Buckhanan, owner of El Mercado Manny's Farmer's Market, says the delay is still impacting her business and her suppliers in Mexico.

“Our business is hurting,” she said.

Buckhanan says 60% of the products at the store come from Mexico, the other 40% are from businesses in Cochise County.

“We couldn't buy more produce this week," she said. "We're going to wait for the next week to see how the prices are going to be.”

The threat of tariffs has exporters worried.

"I think all the producers and growers got into a panic attack over there. They don't know what to expect,” Buckhanan said.

One of the companies she buys from is Flor de Capomo, and they say they've already had to cut contracts with some people because of the rising prices.

"We are all going to be affected because we all need each other,” Buckhanan said.

It’s not just the increase in costs that's affecting the business.

"Our consumers buy less in our store as well. Our average sales are being reduced by 50%,” Buckhanan said. "I think a lot of people (are) really scared of what's happening in the economy, and they are saving their money to spend somewhere else.”

That is leaving Buckhanan to make cuts to her staff and orders.

"Everybody's being conscious of what they spend," Buckhanan said. " The same way Manny's sales are being affected, is the same way Mexico is being affected because the consumer has the last decision in the purchase.”

She says if business doesn't pick up, she'll have to close her doors, less than a year after opening. Buckhanan said she is going to she how she is doing when summer begins and make a decision then.

“You may have to close a business that is not profitable," she said.

Buckhanan is hosting an event on March 26, in an effort to support more local businesses and increase the number of local products.

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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.