MONTEREY >> The Monterey Bay Economic Partnership says that “ultimately, the impact of the administration’s tough trade stance will be felt in higher costs” for most things Americans use, as it issues its opinion on the Trump Administration’s tariffs policy.

“As an economic development organization, we advocate for a strong regional economy and question whether these policies will advance our region,” said MBEP President and CEO Tahra Goraya. “We want a strong economy, we want a strong workforce, and the tariffs along with sweeping immigration policies are likely to weaken our economy.”

The White House has stated its reasoning for the tariffs by saying the extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency under the International Emergency Economic Powers Act.

“Until the crisis is alleviated, President Donald J. Trump is implementing a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China. Energy resources from Canada will have a lower 10% tariff,” proclaims the White House on its website.

The tariffs on Mexico and Canada were delayed until March 6, and if implemented, would likely result in retaliatory measure from both nations. The tariffs on China have begun and it has already retaliated affecting everything from coal, natural gas and crude oil, to ag machinery, cars and trucks, and resources related to the production of electronics, home supplies and car parts, among many others.

Mexico and Canada hold two of the top three spots for Monterey County exports. In 2023, growers shipped more than 190 million pounds of produce to those countries, according to the county’s annual crop report.

As for the nation as a whole, Canada and Mexico are the United States’ first and second largest export markets with goods exports of $680 billion in 2023, and the U.S. is the largest export market for Canada and Mexico. Exports among the U.S., Mexico and Canada support over 17 million jobs.

MBEP states that the agriculture industry, the number one economic driver in both Monterey and San Benito counties, and in Santa Cruz County where it is in the top five, generates a substantial portion of direct economic output including a significant number of directly-related jobs.

In Monterey County alone in 2022, there were more than 600 businesses employing more than 77,000 people — more than any other county in the state. In 2023, the County of Monterey Crop and Livestock Report stated the production gross value of the ag industry was $4.35 billion.

“We support every industry that exists in our region — our hospitality, our tourism, our ag, our manufacturing,” said Goraya. “Everyone is likely to be impacted by these policies.”

Goraya added that MBEP wants the local economy and economic ecosystem to remain strong and to create opportunities for all regional industry sectors. She said MBEP questions whether these tariffs will bolster the regional economy, especially for ag, which is so export dependent.

MBEP believes tariffs coupled with immigration policies will decimate and cripple the agriculture sector not only in the Monterey Bay region but in all ag-producing counties across the country with significant exports. It is certain that those federal policies will cripple the regional economy — one that is both local and global.

Goraya explained that MBEP works at the intersection of government, industry and community, and based on what is in the public space in terms of analysis conducted by think tanks, the press — including the Monterey Herald, and feedback from its stakeholders, MBEP opines that these combined federal acts will weaken the regional tri-county economy, not strengthen it.

The Monterey Bay Economic Partnership points to the fact that the local ag industry puts food on the tables of Americans and people around the world. It also supplies jobs that support local families and the regional economy. The ag industry supports other related industries and workers from irrigation equipment and fertilizer suppliers, to soil scientists, truckers and many others. Agricultural workers and their families eat in local restaurants, buy goods in local shops, and patronize local theaters, and other entertainment venues.

MBEP says that while the administration wants to use tariffs as a bargaining chip to address drug trafficking and illegal immigration issues, whether those results come to pass remains to be seen. It believes the administration’s proposed tariffs are a double-edged sword that in time will hurt manufacturers, small businesses and consumers.

Ultimately, the impact of the administration’s tough trade stance will be felt in higher costs for gas and groceries, and everything from construction materials to car parts, computer chips, washing machines and medicines, says MBEP, and that hurts American consumers as well as manufacturing competitiveness.

Tariffs and retaliatory efforts by other countries are likely to increase the costs of food products for U.S. consumers, reduce U.S. export demand and strengthen the position of other major exporters.

According to one analysis by the Peterson Institute for International Economics, a private nonprofit nonpartisan research institution devoted to studying international economic policy, some of Trump’s bigger tariff proposals would cost the typical American household over $2,600 a year.

“Whether you’re a lettuce grower in Gonzales or buying salad in Aptos, purchasing a truck in Hollister or upgrading a laptop in Salinas, these tariffs — and retaliatory tariffs in response — will be felt broadly and deeply, likely in the form of higher prices, inflation, and supply chain disruptions,” says MBEP. “And anxieties come in the wake of an industry already facing outsized turmoil due to threats of mass deportations, anti-immigrant sentiments, and back-to-back years of climate-related challenges.”