- Tariffs impact businesses in Rye Canyon differently
- Supreme Court may rule on Trump’s emergency tariffs soon
- Some businesses adapt, others struggle with tariff costs
California
How Trump’s tariffs ricochet through a Southern California business park
VALENCIA, California, Jan 9 (Reuters) – America’s trade wars forced Robert Luna to hike prices on the rustic wooden Mexican furniture he sells from a crowded warehouse here, while down the street, Eddie Cole scrambled to design new products to make up for lost sales on his Chinese-made motorcycle accessories.
Farther down the block, Luis Ruiz curbed plans to add two imported molding machines to his small plastics factory.
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“I voted for him,” said Ruiz, CEO of Valencia Plastics, referring to President Donald Trump. “But I didn’t vote for this.”
All three businesses are nestled in the epitome of a globalized American economy: A lushly landscaped California business park called Rye Canyon. Tariffs are a hot topic here – but experiences vary as much as the businesses that fill the 3.1 million square feet of offices, warehouses, and factories.
Tenants include a company that provides specially equipped cars to film crews for movies and commercials, a dance school, and a company that sells Chinese-made LED lights. There’s even a Walmart Supercenter. Some have lost business while others have flourished under the tariff regime.
Rye Canyon is roughly an hour-and-a-half drive from the sprawling Ports of Los Angeles and Long Beach. And until now, it was a prime locale for globally connected businesses like these. But these days, sitting on the frontlines of global trade is precarious.
The average effective tariff rate on imports to the U.S. now stands at almost 17%–up from 2.5% before Trump took office and the highest level since 1935. Few countries have been spared from the onslaught, such as Cuba, but mainly because existing barriers make meaningful trade with them unlikely.
White House spokesman Kush Desai said President Trump was leveling the playing field for large and small businesses by addressing unfair trading practices through tariffs and reducing cumbersome regulations.
‘WE HAD TO GET CREATIVE’ TO OFFSET TRUMP’S TARIFFS
Rye Canyon’s tenants may receive some clarity soon. The U.S. Supreme Court could rule as early as Friday on the constitutionality of President Trump’s emergency tariffs. The U.S. has so far taken in nearly $150 billion under the International Emergency Economic Powers Act. If struck down, the administration may be forced to refund all or part of that to importers.
For some, the impact of tariffs was painful – but mercifully short. Harlan Kirschner, who imports about 30% of the beauty products he distributes to salons and retailers from an office here, said prices spiked during the first months of the Trump administration’s push to levy the taxes.
“It’s now baked into the cake,” he said. “The price increases went through when the tariffs were being done.” No one talks about those price increases any more, he said.
For Ruiz, the plastics manufacturer, the impact of tariffs is more drawn out. Valencia makes large-mouth containers for protein powders sold at health food stores across the U.S. and Canada. Before Trump’s trade war, Ruiz planned to add two machines costing over half a million dollars to allow him to churn out more containers and new sizes.
But the machines are made in China and tariffs suddenly made them unaffordable. He’s spent the last few months negotiating with the Chinese machine maker—settling on a plan that offsets the added tariff cost by substituting smaller machines and a discount based on his willingness to let the Chinese producer use his factory as an occasional showcase for their products.
“We had to get creative,” he said. “We can’t wait for (Trump) to leave. I’m not going to let the guy decide how we’re going to grow.”
‘I’M MAD AT HIM NOW’
To be sure, there are winners in these trade battles. Ruiz’s former next-door neighbor, Greg Waugh, said tariffs are helping his small padlock factory. He was already planning to move before the trade war erupted, as Rye Canyon wanted his space for the expansion of another larger tenant, a backlot repair shop for Universal Studios. But he’s now glad he moved into a much larger space about two miles away outside the park, because as his competitors announced price increases on imported locks, he’s started getting more inquiries from U.S. buyers looking to buy domestic.
“I think tariffs give us a cushion we need to finally grow and compete,” said Waugh, president and CEO of Pacific Lock.
For Cole, a former pro motorcycle racer turned entrepreneur, there have only been downsides to the new taxes.
He started his motorcycle accessories company in his garage in 1976 and built a factory in the area in the early 1980s. He later sold that business and – as many industries shifted to cheaper production from Asia – reestablished himself later as an importer of motorcycle gear with Chinese business partners, with an office and warehouse in Rye Canyon.
“Ninety-five percent of our products come from China,” he said. Cole estimates he’s paid “hundreds of thousands” in tariffs so far. He declined to disclose his sales.
Cole said he voted for Trump three times in a row, “but I’m mad at him now.”
Cole even wrote to the White House, asking for more consideration of how tariffs disrupt small businesses. He included a photo of a motorcycle stand the company had made for Eric Trump’s family, which has an interest in motorcycles.
“I said, ‘Look Donald, I’m sure there’s a lot of reasons you think tariffs are good for America,” but as a small business owner he doesn’t have the ability to suddenly shift production around the world to contain costs like big corporations. He’s created new products, such as branded tents, to make up for some of the business he’s lost in his traditional lines as prices spiked.
He pulls out his phone to show the response he got back from the White House, via email. “It’s a form letter,” he said, noting that it talks about how the taxes make sense.
Meanwhile, Robert Luna isn’t waiting to see if tariffs will go away or be refunded. His company, DeMejico, started by his Mexican immigrant parents, makes traditional-style furniture including hefty dining tables that sell for up to $8,000. He’s paying 25% tariffs on wooden furniture and 50% on steel accents like hinges, made in his own plant in Mexico. He’s raised prices on some items by 20%.
Fearing further price hikes from tariffs and other rising costs will continue to curb demand, he’s working with a Vietnamese producer on a new line of inexpensive furniture he can sell under a different brand name. Vietnam has tariffs, he said, but also a much lower cost base.
“My thing is mere survival,” he said, “that’s the goal.”
Reporting by Timothy Aeppel; additional reporting by David Lawder
Editing by Anna Driver and Dan Burns
Our Standards: The Thomson Reuters Trust Principles.
A 40-year-old Los Angeles man was charged with murder after allegedly killing his girlfriend and kidnapping their young child before fleeing to Mexico, according to authorities.
Ruben Fregosojuarez has been charged one count of murder and one misdemeanor count of child abuse under circumstance or conditions other than great bodily injury or death, according to a Los Angeles County District Attorney’s Office news release. Authorities first identified him as Ruben Fregoso but Los Angeles County prosecutors listed him as Ruben Fregosojuarez.
On Monday around 12:39 p.m., the Los Angeles Police Department conducted a welfare check in the 2600 block of South Alsace Avenue in West Adams, police said in a news release.
Officers found a woman dead inside the home “as a result of violence” and the woman’s daughter missing, police said. On Monday night, the California Highway Patrol issued an Amber Alert for the child, Daleza.
Photos obtained by NBC4 appear to show Fregosojuarez in a parking garage in San Ysidro with the girl on Sunday. The California Highway Patrol has listed her age as 4 years old but Los Angeles police say the girl is 5. She is also described as the suspect’s daughter.
The alert said that the girl was last seen with Fregosojuarez, who allegedly abducted her in a 2019 Land Rover Discovery, on Sunday at about 4 a.m.
The CHP posted in an update that the vehicle was found but that the child and man were still missing. The girl is described as 3 feet tall, 45 pounds, and having black hair and brown eyes.
California’s attorney general is suing the consumer genetics testing company formerly known as 23andMe, alleging the company failed to protect customers’ sensitive personal information in a massive 2023 data breach that exposed the ancestry and genetic data of nearly 7 million people.
Attorney General Rob Bonta filed the lawsuit on Thursday in San Francisco Superior Court against Chrome Holding Co., formerly known as 23andMe, accusing the company of failing to properly investigate or respond to numerous warnings that its systems had been compromised. The company’s mail-in self-testing kits became synonymous with DNA testing before it filed for bankruptcy in 2025.
In 2023, cybercriminals breached 23andMe’s systems by using a “credential-stuffing attack,” which involves bombarding online accounts with huge sets of user names and passwords stolen in previous unrelated attacks. Over a period of months, the intruders were able to make off with the personal data of more than 6.9 million people.
“23andMe’s security measures were so lax that the threat actor was able to operate undetected within 23andMe’s systems for over five months, and remarkably, 23andMe only began investigating after the threat actor offered the stolen user data for sale on the dark web and reached out to 23andMe to demand a ransom,” Bonta’s office said in the complaint.
The San Francisco-based company, which allowed people to submit genetic materials and get a snapshot of their ancestry, revealed in October 2023 that hackers had accessed customer information in the prolonged data breach that targeted customers with Chinese or Ashkenazi Jewish ancestry. The stolen data of more than 1 million Asian-Pacific Islander and Ashkenazi Jewish users was later posted for sale on the dark web.
“The sale of this data on the dark web took place amidst a period of mounting anti-Asian American and Pacific Islander and antisemitic hate and violence,” Bonta said in a press release. “This is disturbing and incredibly dangerous.”
A January 2024 lawsuit accused the company of not doing enough to protect its customers and not notifying certain customers that their data had been targeted specifically. It later settled the lawsuit for $30 million.
23andMe representatives didn’t immediately respond to a request for comment.
At its peak, 23andMe became the best-known name in the emerging area of DNA self-testing, with users paying upwards of $99 for kits that gave them insights into their genetic makeup, potential relatives and ancestry. But the company’s momentum slowed down in recent years after its $3.5 billion public offering in 2021.
Last July, TTAM Research Institute, a nonprofit led by Anne Wojcicki, 23andMe’s cofounder and former CEO, acquired 23andMe’s assets for $305 million.
Gavin Newsom, California’s governor, signed legislation Wednesday that aims to shield California elections from federal interference, saying he expected Donald Trump’s administration to try to meddle in the midterms this year.
The law, which took effect immediately and came days before next Tuesday’s primary, prohibits any person – including federal agents – from accessing voter rolls or election technology without a court order. Law enforcement officers are restricted from disrupting election workers, except in public safety emergencies.
Trump administration officials so far have said they have no plans to send immigration agents to polling locations across the US, a concern raised this year by several Democratic secretaries of state. But Newsom warned “we have to be prepared for everything” because “there’s no rules any more with the Trump administration”.
Voting is already under way in California’s closely watched primary for governor, where a crowded field of Democrats and two viable Republicans are vying for just two spots on the November ballot. Under the state’s open primary system, only the top two vote-getters advance to the general election, regardless of party affiliation.
Newsom, who cannot seek a third term, said the election law is a response to “legitimate anxiety” about Trump’s tactics, primarily in Democratic-led states, where the president has deployed federal agents over the objections of local leaders. The Democratic governor warned against underestimating someone who “doesn’t believe in free and fair elections”.
“I expect the worst with Trump because he’s done the worst,” he said at a news conference.
White House spokesperson Abigail Jackson told the Associated Press later Wednesday that Trump is committed to ensuring that Americans have full confidence in the administration of elections.
“Instead of levying false attacks at the President, Newscum should look in the mirror,” she said in a statement, using Trump’s derogatory nickname for Newsom.
In an interview last year with Vanity Fair, Susie Wiles, the White House chief of staff, knocked down the idea that Trump would deploy the military to suppress voting, saying it was “categorically false”.
The California law also makes it a crime to knowingly take voted ballots out of the custody of election officials.
Earlier this year, the FBI under Trump seized the 2020 general election ballots from Georgia’s most populous county, which is heavily Democratic and has long been at the center of the president’s false claims that fraud cost him the race. The FBI and justice department also have sought records from previous elections in the largest counties in Arizona and Michigan.
Trump triggered a national redistricting frenzy ahead of the midterms when he urged Republicans in Texas and elsewhere to redraw their US House districts to help the party retain control of the closely divided chamber. Missouri, North Carolina, Ohio, Florida and Tennessee also have enacted new maps that could benefit Republicans, and Louisiana is expected to be next.
Republicans so far think they could gain as many as 14 seats from redistricting in November, while Democrats think they could gain six in California and Utah.
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