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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.”

Politics

How Republicans and Democrats are Redistricting Urban Areas to Tilt the House

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How Republicans and Democrats are Redistricting Urban Areas to Tilt the House

American cities — densely populated and overwhelmingly Democratic — are typically prime targets for aggressive gerrymanders. This past year has been no different, as urban areas became casualties of newly partisan maps, drawn by both Republicans and Democrats in a rare bout of middecade redistricting.

With nearly 80 percent of the United States population living in urban areas, according to the census, mapmakers using modern data technology can surgically split cities block by block to eke out a partisan advantage. They “pack” like-minded voters into a single district, or “crack” them, linking slivers of concrete-covered downtowns with farmland hundreds of miles away.

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While the intentions are often political, these julienned districts often leave communities with little in common, and no cohesive representation in Congress. Roughly 37 percent of congressional districts are either urban or an urban-suburban mix, while 63 percent remain rural or rural-suburban, according to the District Density Scale.

So far this year, state lawmakers have carved up major Democratic cities in the nationwide redistricting arms race, drawing new maps in five states. Virginia could be next, if voters approve a referendum Tuesday to redraw boundaries and potentially add four Democratic seats.

Kansas City, Mo.

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Take the Kansas City, Mo., area as a clear example. Late last year, Gov. Mike Kehoe signed into law a new map that would pave the way for eliminating a Democratic seat and add a Republican one, potentially ousting a longtime representative, Emanuel Cleaver, who was also the first Black mayor of Kansas City.

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2024 districts

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The proposed map effectively slices apart — or “cracks” — the old Fifth District, which previously held a majority of Democratic-dominated Kansas City and its metropolitan area, into three parts.

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2024 districts

District Margin
5th Dem. +23.2 D +23.2
6th Rep. +38.9 R +38.9
4th Rep. +42.3 R +42.3

New districts

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District Margin
5th Rep. +18.2 R +18.2
4th Rep. +21.2 R +21.2
6th Rep. +26.7 R +26.7

As a result, Democratic voters from Kansas City are spread out across three new districts where they are likely to be outnumbered by Republican voters. The Kansas City area went from having one Democratic district and two Republican districts to having three Republican districts.

Northern Virginia

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While Missouri illustrates how a single-district city can be cracked apart to dilute the votes of a densely packed partisan area, Virginia is taking a different approach. Its proposed map spreads out Democrats from the crammed northern Virginia suburbs into multiple districts spreading more than a hundred miles into deeply red areas for the opposite outcome: to tilt more districts blue.

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2024 districts

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While there is no central city in northern Virginia — Fairfax County, the state’s largest municipality, boasts nearly 1.2 million people but sprawls across nearly 400 square miles — the northern reaches of the state have a population in the millions and are mostly Democratic.

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2024 districts

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District Margin
8th Dem. +49.3 D +49.3
11th Dem. +34.0 D +34.0
10th Dem. +8.3 D +8.3
7th Dem. +2.9 D +2.9
6th Rep. +23.8 R +23.8

New districts

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District Margin
8th Dem. +17.5 D +17.5
11th Dem. +13.4 D +13.4
10th Dem. +12.4 D +12.4
7th Dem. +8.1 D +8.1
1st Dem. +7.5 D +7.5

The result is an exceptionally aggressive “cracking” of Democratic voters in the northern part of the state across five congressional districts, which would lead to the elimination of three Republican-held seats (the proposed Virginia map eliminates all but one Republican-controlled district).

Houston

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In larger cities like Houston, mapmakers have the opportunity to get creative in their carving. At President Trump’s behest, Texas was the first state to redistrict last year. Let’s look at Houston’s old Ninth District.

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2024 districts

The old Ninth District was mostly swallowed by the newly crafted 18th District, and remaining voters were funneled into three Republican-leaning districts and one Democratic one.

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2024 districts

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District Margin
9th Dem. +44.0 D +44.0
18th Dem. +39.7 D +39.7
7th Dem. +20.7 D +20.7
29th Dem. +20.3 D +20.3
38th Rep. +20.7 R +20.7

New districts

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District Margin
18th Dem. +54.9 D +54.9
29th Dem. +30.4 D +30.4
7th Dem. +23.4 D +23.4
9th Rep. +19.9 R +19.9
38th Rep. +21.0 R +21.0

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But Houston’s maps also illustrate a second gerrymandering strategy: “packing.” The new 18th District was drawn to be exceptionally Democratic, “packing” a high concentration of Democrats into a single district, thereby ensuring that they would be outnumbered in neighboring districts.

Dallas

As another densely populated city, and one with a large population of people of color, Republicans in Texas sliced some congressional districts in the state, while packing Democrats into others.

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2024 districts

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The newly drawn 32nd District is a textbook example of “cracking,” splitting apart the eastern and northern suburbs of Dallas and extending the district more than a hundred miles east, into more rural and deeply Republican areas of East Texas. As a result, the new 32nd District is solidly red compared with its previous blue tint.

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2024 districts

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District Margin
33rd Dem. +33.7 D +33.7
32nd Dem. +23.6 D +23.6
24th Rep. +15.5 R +15.5
5th Rep. +27.0 R +27.0
6th Rep. +28.4 R +28.4

New districts

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District Margin
30th Dem. +47.0 D +47.0
33rd Dem. +32.6 D +32.6
24th Rep. +16.1 R +16.1
32nd Rep. +17.6 R +17.6
5th Rep. +21.4 R +21.4

The cracking and packing in Dallas achieved another outcome: drawing current incumbents out of their districts, forcing some into primaries against one another while prompting others to leave the House entirely. In Dallas, Representative Jasmine Crockett chose to run for Senate after being drawn out of the 30th District (She lost in March to James Talarico).

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Byron Donalds cracks down on persistent border blind spot leaving US vulnerable to overstays

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Byron Donalds cracks down on persistent border blind spot leaving US vulnerable to overstays

NEWYou can now listen to Fox News articles!

FIRST ON FOX: Florida Republican Rep. Byron Donalds introduced legislation that would require biometric tracking of every entry and exit from the United States, as part of a Republican push to crack down on visa overstays and fraudulent immigration documents.

With illegal crossings down sharply under President Donald Trump’s second term, Republicans are shifting toward the next phase of immigration enforcement — tracking visa overstays and closing documentation loopholes. Donalds’ bill aims to force full nationwide use and federal oversight of the biometric entry-exit system.

Donalds told Fox News Digital exclusively he introduced the legislation on Monday.

“Thanks to President Trump’s decisive actions, our borders are more secure than they have been in decades. We are now moving to finish the job by introducing the Reform Immigration Through Biometrics Act, which provides the oversight needed to ensure every entry and exit is fully verified,” Donalds told Fox News Digital. 

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FLORIDA SHERIFF SAYS ICE PARTNERSHIP ONLY THE BEGINNING IN ILLEGAL MIGRANT CRACKDOWN

Congressman Byron Donalds is introducing Reform Immigration Through Biometrics Act to tighten immigration enforcement nationwide. (Paul Ratje / AFP via Getty Images)

The bill would close gaps to ensure full coverage at every port, provide system flow updates, and identify what is “slowing” it down by requiring DHS to report to congress. The biometric data system collects fingerprints, facial images, and iris scans.

Immigration reform is a central focus of the second Trump administration, with officials shifting attention toward internal tracking and enforcement gaps, not just border crossings.

The biometric entry-exit system was first introduced a decade ago, following a 2004 recommendation from the 9/11 Commission to strengthen national security through a comprehensive tracking method.

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HOUSE GOP BILL COULD TRIGGER SELF-DEPORTATION FOR SOMALI REFUGEES AMID MINNESOTA FRAUD PROBE

Previous administrations failed to fully implement the system across all ports of entry, leaving it incomplete. A final rule issued in December 2025 now mandates a nationwide rollout.

Donalds’ legislation aims to ensure it is fully executed this time by holding DHS accountable. 

“The border has been secured, but the work is far from over,” said Donalds in a press release. “Visa overstays and fraudulent documentation remain a large piece of the overall illegal immigration puzzle that needs to be addressed.”

Byron Donalds, a Florida lawmaker and gubernatorial candidate, unveiled legislation cracking down on immigration overstays.  (Kevin Dietsch/Getty Images)

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Data from the Border Patrol cited by Pew Research found there were 237,538 migrant encounters at the Mexican border in 2025. It is the lowest number since Richard Nixon was president in 1970 when 201,780 were encountered.

I REPRESENT A BORDER DISTRICT THAT WAS SWAMPED BY ILLEGAL IMMIGRATION. WHAT I’M SEEING NOW MIGHT SURPRISE YOU

Migrants wait in line to turn themselves in for processing to US Customs and Border Protection border patrol agents near the Paso del Norte Port of Entry after crossing the US-Mexico border in El Paso, Texas, on May 9, 2023.  (Patrick T. Fallon/AFP)

Donalds, candidate for Florida governor to succeed term-limited Gov. Ron DeSantis, said he anticipates “swift passage” of the bill.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

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“Republicans are steadfast in our commitment to the mandate entrusted to us by the American people,” he told Fox News Digital.

Fox News Digital reached out to DHS for comment.

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Former state Controller Betty Yee drops out of the governor’s race

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Former state Controller Betty Yee drops out of the governor’s race

Former state Controller Betty Yee dropped out of the governor’s race on Monday, citing low levels of support from voters and donors.

Yee, a Democrat, was part of a sprawling field of politicians vying to replace termed-out Gov. Gavin Newsom. But despite the bevy of prominent candidates running to lead the nation’s most populous state and the world’s fourth-largest economy, this year’s governor’s race has lacked a clear front-runner well known by the electorate.

“It was becoming clear that the donors were not going to be there. Even some of my former supporters just felt like they needed to move on as well,” Yee said in a virtual news conference Monday morning, adding that her internal polling showed voters did not prioritize “competence and experience … and that’s really been my wheelhouse in terms of how we grounded this campaign.”

The former two-term state controller did not immediately endorse another candidate and said she would take a few days to assess the field before making an announcement.

The race was upended this month when then-Rep. Eric Swalwell, among the leading Democrats in the contest, was accused of sexual assault and other misconduct. The East Bay Area Democrat, who is facing multiple criminal investigations, promptly ended his gubernatorial bid and resigned from Congress.

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Yee said the contest would probably go down as “one of the most unusual, unpredictable and unsettling races in modern California history.”

“I certainly could not have imagined the twists and the disturbing turns that this race has taken,” she said. “But through it all, my values and my vision for California has never wavered.”

“Voters are scared right now, and I think they really are placing a lot of prominence on a fighter in chief against this Trump administration,” she said.

Though she was prepared to be a governor that would push back against the Trump administration, Yee said her calm demeanor did not help her grab attention.

“We are living in like a reality TV era, where to get traction, you have to either be the loudest, you have to have gimmicks. You’ve got to do what you’ve got to do to get attention. I got no gimmicks. I have no scandals,” she said before calling herself “Boring Betty.”

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Yee, 68, was well regarded by Democrats during her tenure in Sacramento.

But she never had the financial resources to aggressively compete in a state with many of the most expensive media markets in the nation.

Yee reported raising nearly $583,000 in 2025 for her gubernatorial bid, according to campaign fundraising reports filed with the California secretary of state’s office. Yee’s announcement that she is dropping out of the race came days before the latest financial disclosures will be publicly reported.

Despite being elected to the state Board of Equalization twice and as state controller twice, Yee was not widely known by most Californians. She never cracked double digits in gubernatorial polls.

Her name will still appear on the ballot. She was among the candidates who rebuffed state Democratic Party leaders’ request this year to reconsider their viability amid fears that the party could be shut out of the November general election because of the state’s unique primary system. The top two vote-getters in the June primary will move on to the November general election, regardless of party affiliation.

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Though California’s electorate is overwhelmingly Democratic, the makeup of the gubernatorial field makes it statistically possible for Republicans to win the top two spots if Democratic voters splinter among their party’s candidates. Yee said fear of that scenario playing out “kind of took over” the gubernatorial race.

“Was it possible? Yes. Was it plausible? No, we’re in California. That was not going to happen,” she said, adding that the top-two primary system “has got to go.”

The daughter of Chinese immigrants, Yee said she was disappointed that other Asian American donors and community members did not show up for her as “robustly” as they had in the past.

“We had the opportunity to make history,” she said. “I’m going to want to do a deep dive about … what was it about my campaign that just did not resonate with them.”

Still, Yee was beloved by Democratic Party activists and previously served as the party’s vice chair.

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No Democratic candidate reached the necessary threshold to win the party’s official endorsement at its February convention, but Yee came in second with support from 17% of delegates despite calls for her to drop out of the race.

“Every poll shows that this race is wide open, and I know this party,” she said in an interview at the convention. “Frankly, I’ve been in positions where it’s been a crowded field, and we work hard and candidates emerge.”

Yee became emotional Monday as she thanked her supporters and family, including her husband, siblings and mother. “She’s now 103 years old, and her life and voice and wisdom are my compass,” Yee said.

The gubernatorial primary will take place June 2, though voters will start receiving mail ballots in about two weeks.

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