Central Coast auto business worried about Trumps proposed tariffs on international imports
PAJARO, Calif. (KION) -- With President Trump's proposed tariffs, some local business owners are wondering how they will be impacted, especially those relying on international imports.
Being the business owner of Alvarez Collision and Paint has been far from easy. The owner says they're still trying to navigate how to deal with the proposed tariffs, as she says her business depends heavily on car parts from Mexico.
Since owning the shop since 2011, Connie Alvarez says she feels like her business has not been able to catch a break.
From the pandemic in 2020, to the 2023 winter floods, and now, 25% proposed tariffs on Mexican imports.
"We got out of parts, bumpers, fenders, liners, they even make transmissions, seats. We depend on Mexico," said Connie Alvarez, owner of Alvarez Collision and Paint in Pajaro.
Inside the businesses, there are several cars needing repairs.
Calculations are still being made on how her business will absorb the costs…
But with the number of products, she relies on outside of the county — she fears it will be a lot, and the cost would be passed down.
"Consumers will pay the price. Auto insurance will go up because, in a collision, parts is necessary to replace or repair the vehicle. So 25% is a lot," said Alvarez.
According to S&P Global Mobility, more than 1 in 5 cars sold in the U.S. were built in Canada or Mexico.
The Associated Press says last year, the us imported 79 billion worth of cars and light trucks from Mexico, far more than any other country, and another $81 billion on auto parts from Mexico.
"I hope. That we work out something, both parties, and just work together. We depend from each other. We're neighbors, you know? They depend on our economy, and we depend on them," said Alvarez.
Now, Connie may start exploring other options.
"If we need them from the states or Mexico, we're gonna get them," said Alvarez.
Those tariffs may go into effect on April 2nd.