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Since immigrating to the United States in 2009, Riyad Ladadwa has made a living buying and selling produce. The Palestinian businessman owns Diamond Fresh Farmers Market in Diamond Bar and relies on goods shipped from Mexico and other countries.
Ladadwa said his business is successful because he’s able to offer inexpensive products, but as President Trump’s aggressive tariffs are set to take effect, it will be hard to keep prices low. Produce from Mexico, including avocados, jalapenos and serrano peppers, could double or triple in price, he said.
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1. Riyad Ladadwa purchases fruits and vegetables for Diamond Fresh Farmers Market from a wholesaler in downtown Los Angeles on Wednesday. (Robert Gauthier/Los Angeles Times) 2. Trade tariffs are already affecting grocery stores such as Diamond Fresh, where much of the produce such as Chinese eggplant come from foreign countries. (Robert Gauthier/Los Angeles Times) 3. Apples from Washington. (Robert Gauthier/Los Angeles Times)
“Everything in my store is cheap, and people come from all over to buy from me,” Ladadwa said. “If I raise prices in my store, I’m gonna lose my business.”
It’s a dilemma shared by business owners across California and the U.S. who buy and resell imported goods. These entrepreneurs are facing mounting uncertainty as Trump imposes steep taxes on shipments from key trading partners such as Mexico and China.
Retailers in Los Angeles who sell toys, apparel and homewares say they have no choice but to absorb the added costs — or pass on higher prices to their customers.
The result could be lower profits, and for some, teetering businesses.
Ladadwa, 44, is bracing for the worst.
“It’s going to hurt a lot,” he said. “I’ve never in my life seen avocados for $100 a box.”
A box of avocados typically costs $35, he noted.
Trump’s worldwide tariffs are putting the squeeze on several high-profile L.A.-based toy makers and apparel companies.
Trump first announced 25% tariffs on imports from Mexico and Canada in early February, citing an “emergency situation” stemming from illegal immigration. He also announced a 10% tax on imports from China, though that number has since grown to 125%.
On Tuesday, Trump authorized a 90-day pause for more than 75 countries facing tariff hikes, including Mexico but excluding China.
The president has several times escalated and backtracked his efforts to enforce his tariffs, leaving business owners confused about their future trade relationships and potential disruptions to their supply chains.
Although the 90-day postponement may offer some breathing room for retailers and manufacturers who rely on imported parts, the looming taxes are poised to raise prices sharply when they take effect.
That’s especially concerning for businesses specializing in nonessential products. Whereas consumers have no choice but to bear the rising costs of necessities such as groceries, they are far less likely to accept price hikes for discretionary goods such as toys and household appliances.
Bert Youn, owner of the Good Liver general store in L.A.’s Arts District, said that he expects to raise his prices 30% because of the tariffs. Youn sells mostly kitchenware and novelties, including ceramic teapots made in Korea and bird boxes handcrafted in France.
His biggest suppliers are Korea, Japan and the European Union, he said, and his business simply can’t afford to absorb 20% or higher levies on imports from those countries.
“I just don’t know how our customers are gonna feel about shopping with us anymore,” Youn said. “This is only gonna hurt small businesses like us.”
It’s difficult to estimate the potential impact on his gross sales, Youn said, but he’ll know more in two months, when a shipment from Denmark is scheduled to arrive. If the EU fails to make a deal with the U.S. by then, he’s looking at an extra $10,000 bill.
In the meantime, Youn said he has encouraged his customers to protest a trade policy he calls a “mistake,” one he said was predicated on a false assumption that bringing manufacturing to the U.S. would be feasible and profitable for local businesses.
Experts say tariffs will affect everyday purchases, but as negotiations continue, exact price increases remain unclear.
According to Vincent Iacopella, a Los Angeles-based customs broker and a board member for the American Assn. of Exporters and Importers, the tariffs will hurt domestic manufacturing by raising the price of parts.
As a customs broker, Iacopella represents importers and helps them comply with duties and regulations.
“Whether it’s an importer who manufactures or an importer who resells a consumer product, both of those costs will rise,” Iacopella said.
The ever-changing nature of Trump’s tariffs policies has made it difficult to determine best strategies, he said.
“These duties are widespread and pervasive. They’re higher than anything we’ve seen in the past,” he said. “It’s a lot of change in a very short period of time.”
For Christina Mullin, owner of Miracle Mile Toys & Gifts, the tariffs are just the latest disaster in L.A.’s struggling retail market, which has already been squeezed by rising online competition.
Since Mullin’s store moved to La Brea Avenue in 2021, she said, not a single new shop has opened nearby. The only foot traffic comes from République Café down the street, she said, and it’s not nearly enough.
“A business is closing literally every day, so we’re just trying to survive,” Mullin said. She added that big-box stores have the unfair advantage of being able to absorb costs related to the tariffs, while local businesses are already struggling to make ends meet.
The majority of Miracle Mile’s products are made in China or sourced from European companies that use Chinese manufacturing. Although Mullin says she would love to switch to U.S. manufacturers, it’s not an easy option.
“It would take years, and by then we’ll be closed,” she said.
The tariffs will go into effect in stages, with some on April 15 and others on May 15 and Dec. 1.
For some business owners, it’s the whiplash that has been the hardest to endure.
An executive at a Los Angeles-based Halloween costume company, who requested anonymity due to ongoing negotiations with suppliers, said that when the initial 10% tariffs on Chinese imports were announced, he planned to work it out with overseas partners and absorb the costs. When the levy rose to 34%, that became “truly untenable.”
Now, with that number still increasing, he said, “I have absolutely no clue what I’m going to do.”
The executive said the tariffs will be disastrous for small businesses.
“It seems like we have been left behind in the calculus,” he said.
Retailers of all sizes will probably need to reevaluate their supply chains, said Iacopella. Until the dust settles and trade policies firm up, businesses will have to make decisions based on little information.
“Importers want to comply with the new regulations and make the most cost-efficient choices,” Iacopella said. “Before they can adapt, they need to know what the long-term strategy is.”
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