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California businesses are reeling from Trump's on-again, off-again tariffs

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California businesses are reeling from Trump's on-again, off-again tariffs

Tariffs haven’t yet hit the supply chain at Anawalt in Malibu, but the hardware store and lumber seller is bracing for steep price hikes in the coming weeks.

The majority of the lumber that the store sells comes from Canada and nearly all of its steel products are made in China, general manager Rieff Anawalt said. Those countries, along with Mexico, have been targeted in sweeping tariffs imposed by President Trump during his second term, sparking a global trade war that intensified this week.

“These tariffs are 100% going to impact us,” Anawalt said. Wholesale reps for the family-run hardware company, which has five locations around Los Angeles County, have warned him to expect prices to go up by April 1 — costs that he said he’ll have to pass on to customers.

“We’re going to see major increases: 15% to 25% across the board in this industry,” he said. “It’ll make COVID prices seem cheap.”

Across California, businesses of all kinds — farmers, automakers, home builders, tech companies and apparel retailers — are reeling from weeks of on-again, off-again tariff chaos as Trump has announced a slew of levies against the country’s top three trading partners, implementing some while modifying, delaying or reversing others.

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“It’s a day-by-day soap opera, and just like a soap opera, you get relief, then it heats up again,” said Jonathan D. Aronson, a professor of international communication and international relations at USC.

As a result, business owners “don’t know what’s going to happen,” he said. “They can’t plan. They don’t know how much to produce. They don’t know who their business partners are going to be.”

This month has been particularly tumultuous. On March 4, Trump’s 25% tariffs on imports from Canada and Mexico kicked in, with a limit of 10% on Canadian energy; he also doubled the tariff on all Chinese imports to 20%. All three countries vowed to strike back with their own measures.

A lumber yard in British Columbia, Canada, last month. Canada is the largest foreign supplier of lumber to the U.S.

(Bloomberg via Getty Images)

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The next day, Trump granted a one-month exemption for U.S. automakers on his new tariffs on imports from Canada and Mexico. The day after that, he said he was postponing many of the tariffs on Canadian and Mexican imports for a month.

On Monday, in a blow to farmers in California and across the U.S., China imposed retaliatory duties of up to 15% on American agricultural products including chicken, corn, beef, pork, wheat and soybeans. Then on Wednesday, Trump’s 25% tariffs on all steel and aluminum imports went into effect.

To counterbalance the effects of the tariffs on their bottom lines, businesses may have to overhaul their operations, said Jerry Nickelsburg, faculty director of the UCLA Anderson Forecast.

“The way in which firms react to that uncertainty is to not put all their eggs in one basket,” he said. “So they cut back on how much they would order, which means they’re going to produce less and they need fewer people — or if not fewer people, fewer hours for the people they have.”

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The latest volley came Thursday morning, when Trump threatened to place a 200% tariff on wine and liquor from the European Union in response to the EU proposing a 50% tariff on American whiskey. About an hour later, he wrote in a follow-up post on Truth Social that the U.S. “doesn’t have Free Trade. We have ‘Stupid Trade.’”

“The Entire World is RIPPING US OFF!!!” he said.

Bolstering the economy was one of Trump’s core promises during the election, and tariffs are key to his strategy. He threatened to slap tariffs on Mexico, Canada and China on his first day back in office, explaining the decision as a way to crack down on illegal immigration and drugs.

But the escalating trade tensions have pummeled Wall Street for three weeks. On Thursday, the S&P 500 closed in correction territory, ending the day down 1.39%; the index is now 10.1% below its record close Feb. 19. The Dow Jones Industrial Average fell 537.36 points, or 1.3%, closing at 40,813.57.

The fallout for farmers

The prolonged back-and-forth has also unsettled companies, both those that import goods from abroad and those that sell their products to foreign clients. California’s economy could be especially hard hit because of its heavy reliance on trade with China and Mexico, and because of its position as a global agricultural powerhouse.

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Farmer Joe Del Bosque holds a raw almond.

Farmer Joe Del Bosque holds a raw almond in Firebaugh, Calif.

(Robert Gauthier / Los Angeles Times)

California farmers grow the largest share of the nation’s food — more than a third of the country’s vegetables and more than three-quarters of its fruits and nuts are grown here — and the state’s fertile ground is a major supplier of produce to countries around the world. Farmers also rely heavily on fertilizer from Canada, which could cost more as the tariffs take hold.

“Farmers in California are going to be hurt particularly badly because almonds, soybeans and things like that are huge exports of the United States,” Aronson said.

The state also accounts for about 85% of wines produced in the United States and is home to thousands of grape growers and wineries, many of them small and generations-old. The Wine Institute says the industry supports employment for more than 420,000 Californians and generates $73 billion in economic activity in the state. Canada is the largest market for California wine.

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A flurry of activity at the ports

Some L.A.-area companies have been stockpiling inventory to get ahead of expected price hikes tied to the tariffs, said Stephen Cheung, chief executive of the Los Angeles County Economic Development Corp.

“A lot of them were hit pretty hard during the last trade war with China,” he said, “so they knew better than to wait and hope for the best.”

That has been reflected in shipping data from the ports in Long Beach and Los Angeles, which continue to record huge numbers thanks to several months of front-loading cargo ahead of Trump’s inauguration.

The Port of Long Beach moved 765,385 twenty-foot equivalent units, or TEUs, in February, a 13.4% increase from the previous year. January’s year-over-year growth was even larger: 952,733 TEUs — a unit of measurement based on the volume of a standard shipping container — were moved, representing a 41.4% increase.

An aerial view of the Port of Long Beach.

An aerial view of the Port of Long Beach.

(Allen J. Schaben / Los Angeles Times)

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After Trump launched a trade war with China during his first term, the Port of Long Beach lost about 20% of expected Chinese cargo in 2019, Chief Executive Mario Cordero said. That was supplemented by a 10% increase in imports from countries in Southeast Asia including Vietnam, Indonesia and Thailand. He expects the same thing to happen this time around.

In the coming months, Cordero said, the local economy could see supply chain disruptions, similar to what occurred during the pandemic, “if we continue on the path of aggressive and high” tariffs.

The Port of Los Angeles expects a 10% reduction in volume from last year amid Trump’s tariffs against China, Executive Director Gene Seroka said.

It’s a day-by-day soap opera, and just like a soap opera, you get relief, then it heats up again.

— Jonathan D. Aronson, a professor of international communication and international relations at USC

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One of the largest seaports in the country, the L.A. port has seen sharp increases in cargo since last summer as businesses stocked up in anticipation of potential Trump tariffs. Just under 10.3 million TEUs, a near record, passed through the port last year.

Those numbers are likely to trend downward as tariffs take hold and the economy adjusts, Seroka said. “Fewer containers mean fewer jobs.”

L.A. businesses try to adjust

Economists say it’s difficult for companies to quickly change suppliers, and some may be loath to upend their supply chains given the ever-changing nature of Trump’s trade policies.

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Some are trying anyway.

Francesca Grace, an interior designer and home stager in Los Angeles, said tariffs have already affected the availability and price of items including fabrics, wood and other building materials, and smaller decor pieces.

Supply chain delays have extended her project timelines in some cases to three to six weeks from immediate availability, and she’s contending with “at least a 25% rise” in costs for materials from China. As a result, she’s now trying to source all of her products locally, up from 75%.

“While this shift aligns with our values, it will also cause our pricing to increase,” Grace said. “We are doing everything we can to avoid increasing our pricing too much. The last thing we want is for these changes to negatively impact our business or make our designs inaccessible.”

Other businesses say they have little choice when it comes to where they get their merchandise.

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“Lumber prices are what they are. There’s no sourcing it somewhere else, so we’re going to have to deal with it as it comes,” said Anawalt, the general manager at the Malibu hardware store. “It’s so beyond my control, there’s nothing I can do. I was panicked at first, but now I’m just going to wait.”

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Trump admin sues Illinois Gov. Pritzker over laws shielding migrants from courthouse arrests

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Trump admin sues Illinois Gov. Pritzker over laws shielding migrants from courthouse arrests

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The U.S. Justice Department filed a lawsuit against Illinois Gov. JB Pritzker over new laws that aim to protect migrants from arrest at key locations, including courthouses, hospitals and day cares.

The lawsuit was filed on Monday, arguing that the new protective measures prohibiting immigration agents from detaining migrants going about daily business at specific locations are unconstitutional and “threaten the safety of federal officers,” the DOJ said in a statement.

The governor signed laws earlier this month that ban civil arrests at and around courthouses across the state. The measures also require hospitals, day care centers and public universities to have procedures in place for addressing civil immigration operations and protecting personal information.

The laws, which took effect immediately, also provide legal steps for people whose constitutional rights were violated during the federal immigration raids in the Chicago area, including $10,000 in damages for a person unlawfully arrested while attempting to attend a court proceeding.

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PRITZKER SIGNS BILL TO FURTHER SHIELD ILLEGAL IMMIGRANTS IN ILLINOIS FROM DEPORTATIONS

The Trump administration filed a lawsuit against Illinois Gov. JB Pritzker over new laws that aim to protect migrants from arrest at key locations. (Getty Images)

Pritzker, a Democrat, has led the fight against the Trump administration’s immigration crackdown in Illinois, particularly over the indiscriminate and sometimes violent nature in which they are detained.

But the governor’s office reaffirmed that he is not against arresting illegal migrants who commit violent crimes.

“However, the Trump administration’s masked agents are not targeting the ‘worst of the worst’ — they are harassing and detaining law-abiding U.S. citizens and Black and brown people at daycares, hospitals and courthouses,” spokesperson Jillian Kaehler said in a statement.

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Earlier this year, the federal government reversed a Biden administration policy prohibiting immigration arrests in sensitive locations such as hospitals, schools and churches.

The U.S. Immigration and Customs Enforcement’s “Operation Midway Blitz,” which began in September in the Chicago area but appears to have since largely wound down for now, led to more than 4,000 arrests. But data on people arrested from early September through mid-October showed only 15% had criminal records, with the vast majority of offenses being traffic violations, misdemeanors or nonviolent felonies.

Gov. JB Pritzker has led the fight against the Trump administration’s immigration crackdown in Illinois. (Kamil Krazaczynski/AFP via Getty Images)

Immigration and legal advocates have praised the new laws protecting migrants in Illinois, saying many immigrants were avoiding courthouses, hospitals and schools out of fear of arrest amid the president’s mass deportation agenda.

The laws are “a brave choice” in opposing ICE and U.S. Customs and Border Protection, according to Lawrence Benito, executive director of the Illinois Coalition for Immigrant and Refugee Rights.

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“Our collective resistance to ICE and CBP’s violent attacks on our communities goes beyond community-led rapid response — it includes legislative solutions as well,” he said.

The DOJ claims Pritzker and state Attorney General Kwame Raoul, also a Democrat, violated the U.S. Constitution’s Supremacy Clause, which establishes that federal law is the “supreme Law of the Land.”

ILLINOIS LAWMAKERS PASS BILL BANNING ICE IMMIGRATION ARRESTS NEAR COURTHOUSES

Border Patrol Commander Gregory Bovino leaves the Dirksen U.S. Courthouse in Chicago. (Brian Cassella/Chicago Tribune/Tribune News Service via Getty Images)

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Raoul and his staff are reviewing the DOJ’s complaint.

“This new law reflects our belief that no one is above the law, regardless of their position or authority,” Pritzker’s office said. “Unlike the Trump administration, Illinois is protecting constitutional rights in our state.”

The lawsuit is part of an initiative by U.S. Attorney General Pam Bondi to block state and local laws the DOJ argues impede federal immigration operations, as other states have also made efforts to protect migrants against federal raids at sensitive locations.

The Associated Press contributed to this report.

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Supreme Court rules against Trump, bars National Guard deployment in Chicago

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Supreme Court rules against Trump, bars National Guard deployment in Chicago

The Supreme Court ruled against President Trump on Tuesday and said he did not have legal authority to deploy the National Guard in Chicago to protect federal immigration agents.

Acting on a 6-3 vote, the justices denied Trump’s appeal and upheld orders from a federal district judge and the U.S. 7th Circuit Court of Appeals that said the president had exaggerated the threat and overstepped his authority.

The decision is a major defeat for Trump and his broad claim that he had the power to deploy militia troops in U.S. cities.

In an unsigned order, the court said the Militia Act allows the president to deploy the National Guard only if the regular U.S. armed forces were unable to quell violence.

The law dating to 1903 says the president may call up and deploy the National Guard if he faces the threat of an invasion or a rebellion or is “unable with the regular forces to execute the laws of the United States.”

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That phrase turned out to be crucial.

Trump’s lawyers assumed it referred to the police and federal agents. But after taking a close look, the justices concluded it referred to the regular U.S. military, not civilian law enforcement or the National Guard.

“To call the Guard into active federal service under the [Militia Act], the President must be ‘unable’ with the regular military ‘to execute the laws of the United States,’” the court said in Trump vs. Illinois.

That standard will rarely be met, the court added.

“Under the Posse Comitatus Act, the military is prohibited from execut[ing] the laws except in cases and under circumstances expressly authorized by the Constitution or Act of Congress,” the court said. “So before the President can federalize the Guard … he likely must have statutory or constitutional authority to execute the laws with the regular military and must be ‘unable’ with those forces to perform that function.

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“At this preliminary stage, the Government has failed to identify a source of authority that would allow the military to execute the laws in Illinois,” the court said.

Although the court was acting on an emergency appeal, its decision is a significant defeat for Trump and is not likely to be reversed on appeal. Often, the court issues one-sentence emergency orders. But in this case, the justices wrote a three-page opinion to spell out the law and limit the president’s authority.

Justice Amy Coney Barrett, who oversees appeals from Illinois, and Chief Justice John G. Roberts Jr. cast the deciding votes. Justice Brett M. Kavanaugh agreed with the outcome, but said he preferred a narrow and more limited ruling.

Conservative Justices Clarence Thomas, Samuel A. Alito Jr. and Neil M. Gorsuch dissented.

Alito, in dissent, said the “court fails to explain why the President’s inherent constitutional authority to protect federal officers and property is not sufficient to justify the use of National Guard members in the relevant area for precisely that purpose.”

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California Gov. Gavin Newsom and Atty. Gen. Rob Bonta filed a brief in the Chicago case that warned of the danger of the president using the military in American cities.

“Today, Americans can breathe a huge sigh of relief,” Bonta said Tuesday. “While this is not necessarily the end of the road, it is a significant, deeply gratifying step in the right direction. We plan to ask the lower courts to reach the same result in our cases — and we are hopeful they will do so quickly.”

The U.S. 9th Circuit Court of Appeals had allowed the deployments in Los Angeles and Portland, Ore., after ruling that judges must defer to the president.

But U.S. District Judge Charles Breyer ruled Dec. 10 that the federalized National Guard troops in Los Angeles must be returned to Newsom’s control.

Trump’s lawyers had not claimed in their appeal that the president had the authority to deploy the military for ordinary law enforcement in the city. Instead, they said the Guard troops would be deployed “to protect federal officers and federal property.”

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The two sides in the Chicago case, like in Portland, told dramatically different stories about the circumstances leading to Trump’s order.

Democratic officials in Illinois said small groups of protesters objected to the aggressive enforcement tactics used by federal immigration agents. They said police were able to contain the protests, clear the entrances and prevent violence.

By contrast, administration officials described repeated instances of disruption, confrontation and violence in Chicago. They said immigration agents were harassed and blocked from doing their jobs, and they needed the protection the National Guard could supply.

Trump Solicitor Gen. D. John Sauer said the president had the authority to deploy the Guard if agents could not enforce the immigration laws.

“Confronted with intolerable risks of harm to federal agents and coordinated, violent opposition to the enforcement of federal law,” Trump called up the National Guard “to defend federal personnel, property, and functions in the face of ongoing violence,” Sauer told the court in an emergency appeal filed in mid-October.

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Illinois state lawyers disputed the administration’s account.

“The evidence shows that federal facilities in Illinois remain open, the individuals who have violated the law by attacking federal authorities have been arrested, and enforcement of immigration law in Illinois has only increased in recent weeks,” state Solicitor Gen. Jane Elinor Notz said in response to the administration’s appeal.

The Constitution gives Congress the power “to provide for calling forth the militia to execute the laws of the union, suppress insurrections and repel invasions.”

But on Oct. 29, the justices asked both sides to explain what the law meant when it referred to the “regular forces.”

Until then, both sides had assumed it referred to federal agents and police, not the standing U.S. armed forces.

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A few days before, Georgetown law professor and former Justice Department lawyer Martin Lederman had filed a friend-of-the-court brief asserting that the “regular forces” cited in the 1903 law were the standing U.S. Army.

His brief prompted the court to ask both sides to explain their view of the disputed provision.

Trump’s lawyers stuck to their position. They said the law referred to the “civilian forces that regularly execute the laws,” not the standing army.

If those civilians cannot enforce the law, “there is a strong tradition in this country of favoring the use” of the National Guard, not the standing military, to quell domestic disturbances, they said.

State attorneys for Illinois said the “regular forces” are the “full-time, professional military.” And they said the president could not “even plausibly argue” that the U.S. Guard members were needed to enforce the law in Chicago.

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Video: Trump Announces Construction of New Warships

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Video: Trump Announces Construction of New Warships

new video loaded: Trump Announces Construction of New Warships

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Trump Announces Construction of New Warships

President Trump announced on Monday the construction of new warships for the U.S. Navy he called a “golden fleet.” Navy officials said the vessels would notionally have the ability to launch hypersonic and nuclear-armed cruise missiles.

We’re calling it the golden fleet, that we’re building for the United States Navy. As you know, we’re desperately in need of ships. Our ships are, some of them have gotten old and tired and obsolete, and we’re going to go the exact opposite direction. They’ll help maintain American military supremacy, revive the American shipbuilding industry, and inspire fear in America’s enemies all over the world. We want respect.

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President Trump announced on Monday the construction of new warships for the U.S. Navy he called a “golden fleet.” Navy officials said the vessels would notionally have the ability to launch hypersonic and nuclear-armed cruise missiles.

By Nailah Morgan

December 23, 2025

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