- 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.
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California
Xavier Becerra surges in poll after Eric Swalwell drops out of California governor’s race
A new poll shows a major shift in the California governor’s race after former Rep. Eric Swalwell, who was once a frontrunner, dropped out of the election following several allegations of sexual misconduct.
“This definitely throws this race into even more volatility, creates a huge vacuum,” Pomona College politics professor Sara Sadhwani said.
According to the new numbers, Xavier Becerra, the former state attorney general and Health and Human Services Secretary under President Biden, is surging in popularity.
In Emerson College’s Inside California Politics poll, Becerra is now polling at 10%, a seven-point jump since March.
Republican Steve Hilton remains in the lead with 17%, followed by Riverside County Sheriff Chad Bianco at 14%.
Among Democrats, billionaire Tom Steyer leads the pack with 14%, followed by Becerra and former Rep. Katie Porter at 10% each. San Jose Mayor Matt Mahan sits at 5%.
The poll showed that 23% of voters remain undecided.
“Xavier Becerra should be the happiest of them all because he’s the biggest move in this survey,” said Zev Yaroslavsky, director at UCLA’s Luskin School of Public Affairs.
Emerson College conducted the poll right after Swalwell dropped out of the race and President Trump endorsed Hilton.
“I believe over time, because Trump has endorsed Hilton for the governorship, that Hilton will continue to edge up and Bianco by definition will have to go down,” Yaroslavsky said.
Last weekend, the California GOP held its convention, and, similar to the Democrats, the party did not make an endorsement. However, Bianco received the most votes from the GOP delegates.
“We’re extremely happy with how it came out,” Bianco said. “There was a lot of effort put in by my opponent. Hundreds of thousands of dollars to try and win this election.
With the large number of undecided voters, Yaroslavky believes that the race is still in the air.
“It’s still early,” Yaroslavsky said. “It’s a little less than seven weeks before the election. The ballots go out at the beginning of next month. People, at least 30%, still haven’t made up their mind.”
In the state’s primary system, only the top two vote-getters in the June primary will advance to the November general election.
California
Here are the candidates in the running to be California’s next governor
The race to replace California Gov. Gavin Newsom, who terms out after this year, is ramping up with voters able to cast ballots soon.
The stunning collapse of Eric Swalwell’s campaign has upended the wide-open contest where no Democratic candidate has emerged as a clear frontrunner and mail-in voting is scheduled to start in May
California has an unpredictable top-two primary system that puts all candidates on one ballot, with only the top two vote-getters advancing to November, regardless of party. Despite their party’s dominance in the state, Democrats fear their crowded pool of candidates will divide the party’s vote and allow two Republicans to advance.
Here’s a look at the prominent candidates:
California
The race for California state superintendent is wide open: Poll
Elementary students practicing music at school.
Credit: Music Workshop
It’s anyone’s guess who is the front-runner for state superintendent of public instruction. According to a voter survey on K-12 education released Wednesday by the Public Policy Institute of California, none of the 10 candidates for the California schools chief reaches even 10% of support among likely voters.
The PPIC survey of 1,604 California adults was conducted between March 26 and April 3. It also found that voters overwhelmingly approve of teacher strikes and support an initiative, led by the California Teachers Association, that would make permanent a temporary, multi-billion-dollar income tax surcharge on wealthy earners, which is set to expire in 2031.
When asked in the abstract about the quality of education in the state’s public schools, half of voters (51%) said the quality has gotten worse over the past few years and major changes are needed, and 47% of all voters said public schools are headed in the wrong direction. But among public school parents, more than half (57%) said schools are headed in the right direction.
Mark Baldassare, survey director at PPIC, said the results are somewhat surprising, given the increased investments in public education in recent years.
“When you have more than half the people saying that they think that the quality of education has gotten worse, I think that’s something,” Baldassare said. “Given all the efforts that have been made to make it better and the resources that have gone into it, that’s still a sizable proportion who are concerned about where we are and where we’re headed.”
Still, voters’ concerns about the direction in which education is headed do not translate into support for radical changes to education policy, such as vouchers for private and religious schools. Less than a quarter (24%) of likely voters said they would vote yes on an initiative proposed for the November ballot that would require the state to provide money for California residents to attend religious and private schools.
Baldassare said he found it significant that the vast majority (79%) of those surveyed said they were concerned that students in lower-income areas are less likely than other students to be ready for college when they finish high school. A large majority (71%) also said they were concerned about improving educational outcomes for students learning English as a second language.
Good marks for Newsom
The survey found more than half of voters (54%) support Gov. Gavin Newsom’s handling of schools — an increase of 4 percentage points from last year — and there is widespread support for several of the initiatives implemented under his watch, including transitional kindergarten, an extra public school grade for 4-year-olds, limits on cellphone use in schools and protections for immigrant and transgender students.

A majority (61%) also approve of teachers’ unions striking for higher pay. Baldassare said support for teachers has been high for many years, but the answers to the question this year are significant because several teachers’ unions have either gone on strike or threatened to do so, whereas in the past the question was more theoretical.
“That’s really driven by a perception that the cost of living is very high in California and that people are concerned about teachers being able to afford to live here,” Baldassare said.
The PPIC is a prominent nonpartisan research and public policy organization that explores issues of the environment, politics, economics and education, and regularly surveys Californians on their views. The latest education survey has a margin of error of 3.2 percentage points, meaning that 95 times out of 100, the results will be within 3.2 percentage points of what they would be if all adults in California were interviewed.
Race for state superintendent
Almost a third (32%) of likely voters said they did not know who they would vote for in the race for state superintendent of public instruction. The rest were split among the 10 candidates — mostly within the survey’s margin of error — with 9% saying they would vote for Ainye Long, a public school teacher from San Francisco who has not run an active campaign, and 9% for Anthony Rendon, the former speaker of the California Assembly.
Two school board members — Richard Barrera of the San Diego Unified School District and Sonja Shaw, president of Chino Valley Unified School District — each had 7%; Assemblymember Al Muratsuchi and former State Sen. Josh Newman received 6%. Nichelle Henderson, board member of the Los Angeles Community College District, had 5%.
Calling the race “a sleeper outside of the education community,” Barrett Snyder, a partner with Capitol Advisors Group, a government relations firm for public schools, estimated it would take $15 million to $20 million for a candidate to get the awareness it would take to ensure a win.
At this point, no candidate has raised even a 10th of that amount. Former Assembly Speaker Anthony Rendon has collected $1.2 million, and Assemblymember Al Muratsuchi is second with about half of that amount.
The California Teachers Association, the dominant funding source in past state superintendent elections, has endorsed Richard Barrera, the veteran San Diego Unified school board member, but he has raised only about $180,000 so far — though that could change.
This week, the CTA announced it was throwing its support for governor to Tom Steyer, who has committed $100 million of his own fortune to the campaign, reducing the need for the CTA to throw a lot of money into that race. As a result, Snyder said, Barrera could be the biggest benefactor.
“We’re in it to win it. We know it takes money,” CTA President David Goldberg said Wednesday, without specifying how much the union would spend on the state superintendent primary campaign.
Support for transitional kindergarten, limits on cellphone use
Newsom made early education one of his signature issues during his campaign for governor, and in 2022 signed a law gradually expanding transitional kindergarten, an extra grade before kindergarten, to all 4-year-olds, which is now fully implemented.
The vast majority of voters (68%) said they approve of the state funding transitional kindergarten for all 4-year-olds in California. More than two-thirds (72%) said attending transitional kindergarten is somewhat or very important to helping students succeed in later years of school.
A large majority of voters are concerned about disparities in early education. More than two-thirds (69%) said they were concerned that children in lower-income areas are less likely than other children to be ready for kindergarten, and 61% said they were concerned that students who speak English as a second language are less likely than other children to be ready for kindergarten.
An overwhelming majority also approves of limiting cellphone use in schools, which Newsom championed by signing a law in 2024 requiring every school to adopt a policy limiting the use of phones in school by July 1. More than 90% of parents with school-age children support policies that limit phone use in schools. About half (52%) said they prefer banning cellphones during class time but allowing students to use phones at lunch or between classes, while 40% prefer banning cellphones throughout the school day.
Support for school policies protecting undocumented immigrant and transgender students
Two-thirds of voters (67%) said they were somewhat or very concerned about increased federal immigration enforcement under the Trump administration and the effects on undocumented students in their local public schools. The same percentage supports their school districts becoming a “sanctuary safe zone” to protect undocumented students. The Legislature passed several laws last year prohibiting schools from allowing federal immigration agents to enter nonpublic areas of schools without a warrant signed by a judge, and requiring schools to notify parents and students if federal immigration agents were on campus.
The majority of voters (57%) also said it is a good thing that California passed Assembly Bill 1955 in 2024, which bans schools from requiring teachers and staff to disclose students’ gender identity or sexual orientation to parents or others without their permission.
Ballot initiatives and legislation
Other education issues important to voters
- 66% support building affordable housing for teachers on land where public schools have closed
- 84% said community schools, which offer wrap-around services, are important for improving outcomes for underserved students
- 81% said they would vote yes on an initiative requiring risk labels for artificial intelligence or chatbots likely to be used by children
- 71% said it’s important for high schools to offer ethnic studies classes
- 74% said it’s important for high schools to offer education on the environment, climate and sustainability
Likely voters were asked how they would vote on several different initiatives proposed for the November ballot. A large majority (62%) said they would vote yes to make permanent an existing tax rate for high-income Californians, which is currently set to expire in 2031. If the initiative were to fail, it would result in an estimated annual loss of $2 billion to $5 billion for TK-12 schools and community colleges.
Though most voters (47%) said current state funding is “not enough” for public schools, the poll shows that local bond measures and parcel taxes that could provide more funding for public schools might fall short of the 55% majority needed to pass.
Most voters (57%) said they would not approve an initiative that would limit voters’ ability to pass local taxes by requiring a two-thirds majority.
Newsom’s proposal to shift control of the state Department of Education to a new education commissioner appointed by the next governor appears to have weak support, although it is unclear how much voters understood what the policy would entail. When asked whether they support a proposal to “remove the elected state superintendent as the head of the California Department of Education and have the appointed State Board of Education run the California Department of Education,” only 43% approved.
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