By Karen Pearlman
Photo by Emma Palmer: San Diego County Building Industry Association CEO Lori Pfeiler; Lucas Coleman, Director of World Trade Center San Diego; and San Diego City Councilman Raul Campillo.
March 26, 2025 (San Diego) -- One week ahead of plans by President Donald Trump to put a 25 percent additional tariff on imports from Mexico and Canada, as well as a 10 percent tariff on imports from China, San Diego City Councilmember Raul Campillo and local business leaders warned of severe economic consequences for the San Diego County region.
Trump said he is taking the action to hold Mexico, Canada and China accountable to their promise to halt illegal immigration and stopping fentanyl and other drugs from flowing into the United States.
Chair of the city of San Diego’s Economic Development & Intergovernmental Relations Committee, Campillo, who represents the Seventh Council District of San Diego (including the Navajo area neighborhoods of San Carlos, Allied Gardens, Del Cerro and Grantville) shared his concerns at a Wednesday afternoon press conference.
Joined by business leaders from different San Diego industries expecting to be affected by the tariffs, Campillo urged the federal administration to reverse course before the tariffs stand to damage local businesses and housing affordability.
The tariffs will impact industries that include manufacturing construction and healthcare, plus trade.
Campillo and business leaders are urging the current administration to pursue alternative solutions that would strengthen American industries without hurting consumers.
“San Diego thrives because of trade,” Campillo said.
“From our small businesses and manufacturers to our healthcare providers and construction industry, we depend on strong economic partnerships with Mexico, Canada and beyond. These tariffs threaten the economic stability of our region, putting jobs at risk, raising prices on everyday goods, and making it even harder for working families to afford to live here.”
Economic experts predict that the coming tariffs are expected to cost the average American household up to $2,000 more per year. San Diego families will be among the hardest hit because of an already high cost of living.
While trade accounts for 67 percent of Canada’s Gross Domestic Product, 73 percent of Mexico’s GDP and 37 percent of China’s GDP, it accounts for only 24 percent of U.S. GDP, according to The White House.
The White House reports that in 2023, the U.S. trade deficit in goods was the world’s largest at over $1 trillion.
Campillo said Trump is calling April 2 “Liberation Day,” and said, “let’s be honest -- there’s nothing liberating about raising prices on hardworking San Diegans and putting local jobs at risk.”
Campillo said the tariffs will threaten everything from groceries to housing to healthcare costs -- at a time when many families are already struggling.
He said the issue “is not about partisan politics -- it’s about protecting San Diego’s economy.”
“As an elected representative, I am standing with San Diego’s business community to say loud and clear -- this trade war is reckless, and it must stop,” Campillo said.
San Diego’s geographic position and close ties with Mexico make the region particularly vulnerable to economic instability caused by tariffs.
With $63 billion in imports and $33 billion in exports flowing through San Diego (2023 statistics), new trade restrictions could create severe economic disruptions.
San Diego Regional Chamber of Commerce Vice President of International and Public Affairs, Kenia Zamarripa said that tariffs “create unnecessary economic barriers that disrupt cross-border trade, increase costs for businesses and threaten jobs in our region.”
Zamarripa noted that San Diego thrives on seamless trade with Mexico – the region’s top trading partner.
“These tariffs will harm businesses of all sizes,” Zamarripa said.
One particular industry that is expected to be hit hard from the tariffs is housing construction. The cost of materials is expected to rise dramatically with the changes, potentially worsening San Diego’s housing crisis.
San Diego County Building Industry Association CEO Lori Pfeiler said that the new tariffs on America’s largest trading partners – Mexico, Canada and China -- are projected to raise the cost of imported construction materials by more than $3 billion, increasing the price of a new home by $7,500 to $10,000.
“That’s exactly the wrong approach, especially in San Diego, where we’re already facing a severe housing affordability crisis,” Pfeiler said. “We urge President Trump to roll back these tariffs to help build more housing, not less.”
Last November Trump said the tariff will remain in effect until “drugs, in particular fentanyl, and illegal aliens stop this invasion of our country.”