- 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
Tory Lanez Sues California Prison System for $100 Million Over Stabbing
Rapper was stabbed 16 times by fellow inmate in May 2025 while 10-year sentence in Megan Thee Stallion shooting case
Tory Lanez has filed a $100 million lawsuit against the California Department of Corrections stemming from a May 2025 incident where the rapper was stabbed in prison.
Lanez — born Daystar Peterson and currently serving a 10-year sentence after being found guilty in the Megan Thee Stallion shooting case — also sued the warden and guards at the California Correctional Institute in Tehachapi, where the rapper was stabbed 16 times in an “unprovoked life-threatening attack” by another inmate, the lawsuit states.
Peterson was hospitalized following the May 2025 incident, suffering a collapsed lung among stab wounds to his back, torso, and head.
According to the Associated Press, the lawsuit criticized the Department of Corrections for housing Peterson with fellow inmate and alleged attacker Santino Casio, who was serving a life sentence for second-degree murder. “The choice to house Casio with Peterson was known or should have been a known danger,” the lawsuit said, adding that Tory Lanez’ “high-profile celebrity status” made him a target.
The lawsuit also said that prison guards were slow to respond to the shanking, and didn’t employ flash grenades or other measures to halt Casio’s attack.; Casio was not charged for stabbing Peterson, the Associated Press notes.
Lanez, who following his hospitalization was transferred to San Luis Obispo County’s California Men’s Colony, also alleges in the lawsuit that he never received his possessions from the California Correctional Institute in Tehachapi, including songbooks filled with lyrics to his unreleased music.
Lanez is serving a 10-year prison sentence for shooting Megan Thee Stallion in the foot during a confrontation in the summer of 2020. He was eventually convicted on several firearms charges, including assault with a firearm, in December 2022. In November 2025, his appeal was denied by a three-judge panel, and the 10-year sentence was upheld.
California
California DOJ cracks down on hospice fraud. Takes shot at Trump Administration
From one crackdown on hospice fraud to another.
A few weeks ago, the FBI arrested multiple people in Southern California that were accused of defrauding the government for millions of dollars.
In a more recent announcement last Thursday, California’s State Attorney General Rob Bonta held a press conference to announce a fraud bust of their own.
“Operation Skip Trace uncovered and ended a hospice fraud scheme that defrauded Medi-Cal of $267 million,” Bonta said. “So just to be clear, a quarter billion dollars over funds that are paid for by California taxpayers, funds that are meant to provide care to Californians in need. It is unacceptable. It is illegal and we will not stand for it.”
The operation saw a total of 21 suspects charged as a result and dismantled a major hospice fraud scheme, with two handguns and over $750 thousand in cash seized as well.
According to the state’s attorney general, this is just one of the many cases over the years the state has cracked down on.
“This is just the latest example of the California DOJ’s longstanding ongoing and successful efforts to combat hospice and medical fraud,” Bonta said. “We have been doing this work for years. We’ve been doing it successfully before certain people in this country decided to think about it for the first time. We will continue to do this work. Heads down, sleeves rolled up, important investigative work, prosecutorial work.”
He added to that by taking a shot at the Trump Administration’s latest fraud operations.
“While healthcare fraud might be President Trump’s shiny new political talking point, the California DOJ has been going after healthcare fraud since 1979,” Bonta said. “For decades, Trump is late to the party. Protecting taxpayer dollars and protecting programs sick and vulnerable Californians rely on have been our priority for nearly five decades.”
Governor Gavin Newsom also spoke out about this latest crackdown while taking a shot of his own at President Trump.
In a post to “X” the Governor’s Press Office wrote in part quote…
“California has been cracking down on hospice fraud long before Trump gutted oversight and pardoned the architect of the biggest health care fraud scheme in U.S. history.”
State Republicans have responded to this latest announcement from Attorney General Bonta, calling for a special session to demand accountability from the Governor on widespread fraud.
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.
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