LEWES, Del. – Business owners and shoppers are bracing for the financial impact as a new 25 percent tariff on goods imported from Canada and Mexico takes effect Tuesday.
Carol Garner, manager of R & L Liquors, imports products from both countries each month, with tequila from Mexico being a key part of her sales.
“People do use tequila all year long,” said Garner.
Garner remains uncertain about how the tariff will affect her business, including whether it will force her to raise prices.
“We'll see how much it is," said Garner. "I try not to raise my prices if I don't have to, but I may have to with this."
Top 10 U.S. imports from Mexico and Canada (Associated Press)
Before the tariff, most goods moving between the U.S., Canada, and Mexico were tariff-free under the U.S.-Mexico-Canada trade agreement. According to the Associated Press, it is importers — American companies — that pay tariffs, and the money goes to the U.S. Treasury
One shopper at Redner's in Lewes told CoastTV she's thankful that spring is around the corner so she can plant her own fruits and vegetables, since she's worried tariffs will increase the price of produce.
Paul Silverman, another local shopper, said he plans to take a wait-and-see approach.
“It's going to hurt a little bit obviously, but I want to be optimistic that the president knows what he's doing and that it's going to work out in our favor, but I don't know,” said Silverman.
President Trump has said tariffs will create more factory jobs, shrink the federal deficit, lower food prices and allow the government to subsidize childcare.