LAS VEGAS (KTNV) — In Southern Nevada, many local businesses, like Tacos & Beer, rely heavily on imports from Mexico. But even with a temporary pause to tariffs on Mexico (and now Canada), the 25% tariff increase is still on the table. This means costs could be going up in March.
I wanted to check out how businesses like Tacos & Beer could potentially be impacted, so I met with the owner, John Simmons. Simmons has had his restaurant open for more than 12 years.
Abel: When you hear, you know, the potential of a 25% tariff increase in Mexico as well as Canada, What comes to mind for you, John?
"Kinda horrifying to tell you the truth. So much of the product that we use in our food here is produce from Mexico. We have the produce coming right now," Simmons said.
On Feb. 1, President Donald Trump he made the big announcement of 25% tariffs on imports from Canada and Mexico and a 10% tariff on Chinese goods.
▶ Read More What are tariffs and how do they work?
Abel: And this masa, you're bringing it in from Mexico?
"We bring in the masa seca, which is the dry masa, and then we make our own dough. We make the tortillas, Boom, to order," Simmons said. "This is the most popular beer in the country right now...So people are gonna have to pay 25% more for that. Your tequila, put your margaritas, our tomatillos from Mexico, limes, lemons, fresh oranges."
"We go through cases of avocado every day, you know? And the price of avocado already fluctuates a lot. So add another 25% like people gotta have their guacamole, man. There's no substitute," Simmons continued.
Abel: If this does happen, are you going to have to increase prices for your customers?
"Oh, absolutely. I mean, I estimate about 10%," Simmons said.
I also ran into Brett Robillard. He has been a loyal customer to Tacos & Beer for nearly 10 years.
Abel: How do you feel that this may have an impact on consumers like yourself who go to these restaurants?
"I won't stop coming. I like to support local businesses, of course, and I love this place. It's not gonna go over well if the prices come up and and stay that way," Robillard said. "Nobody's going to like that. If there's a short term burn in order to reposition ourselves financially in the international trade market, I don't see a problem with it."
"I mean, that's the beauty of a market economy is that the best product at the best price is what people are going to buy. So, you know, when you start messing with the market machinations, it throws everything off," Simmons said.
Since the pandemic, Simmons told me there's already been about a 20% increase in the cost of his ingredients.
He says just like many other businesses here in Southern Nevada, it's a waiting game.
▶ Watch Proposed tariffs on Canada, Mexico paused after countries agree to tougher border security measures
