NOGALES, Ariz. (KGUN) — At Chamberlain Distributing Inc. in Nogales, the company sells produce like tomatoes, bell peppers and squash, all sourced from Mexico. While the business isn't directly affected by tariffs due to protections under the U.S. Mexico Canada Agreement, inflation is creating challenges.
"Our relationship with Mexico is as strong as ever," said Jaime Chamberlain, president of Chamberlain Distributing Inc.
However, uncertainty around potential future tariffs has forced the company to halt expansion plans.
"At the moment we've stopped all investments in Mexico in our farming," Chamberlain said.
The White House reports that the trade deficit has narrowed to its smallest since mid 2020, and dropped more than 35% since last year. They also said U.S. exports are up 6% over the last year due to tariffs.
"One of the things that's most difficult for us in the ag industry is we need more certainty," Chamberlain said.
Rising costs, he said, are being passed down to consumers, creating a slow start to his farming season since September. The impact on everyday shoppers is significant, he said.
"The consumer is saying do I put gas in my car or do I buy tomatoes?" Chamberlain said.
According to the Bureau of Labor Statistics, overall prices increased 3% from September of last year to this September.
At BKY's Place in Nogales, owner Sergio Castaneda faces similar challenges with products that primarily originate from China, a country that has faced heavy tariffs.
"This year is more difficult because the price on everything," Castaneda said.
The increased costs are forcing him to pay an extra dollar or two for the same products, squeezing profit margins.
"We're not going to make too much profit. We have to cut the prices because we need to sell," Castaneda said.
President Trump said tariffs are allowing him to negotiate better trade deals. He recently announced $12 billion in assistance for farmers. The one-time payment will be funded through tariff revenue.
Meanwhile, business owners like Castaneda are seeking alternative suppliers to manage costs.
"We're just looking for some different, cheaper so we can buy it if it comes from another country," Castaneda said.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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Andrew Christiansen is a reporter for KGUN 9. Before joining the team, Andrew reported in Corpus Christi, Texas for KRIS6 News, Action 10 News and guest reported in Spanish for Telemundo Corpus Christi. Share your story ideas with Andrew by emailing andrew.christiansen@kgun9.com or by connecting on Facebook, or Twitter.
