Hispanic grocery store in Milwaukee fearful of Trump tariffs: 'Prices are going to go up'

MILWAUKEE (CBS 58) -- One of Milwaukee's largest Hispanic-owned grocery store chains, El Rey, is preparing for the impact of President Trump's tariffs. 

President Donald Trump announced new tariffs on Mexico, Canada and China as he signed the long-promised economic policy at his Mar-a-Lago club on Saturday.

As Trump has repeatedly promised over the past several months, the tariffs will amount to a significant 25% duty on all imports from Mexico and most goods from Canada, and a 10% tariff on Chinese goods imported into the United States.

“I’m a little worried, just because prices are going to go up." said Leonardo Gomez, a manager at El Rey, "[We are] going to work even harder to make sure we give fair pricing with the quality we’ve always been having.”

The Trump administration said tariffs are aimed at curbing the flow of drugs and undocumented immigrants into the US, but they potentially risk substantial price increases for American consumers across an array of common goods. 

“Our tomatoes, our avocados, our limes, and I’m just talking about produce," Gomez said while naming some of the products at the store that would be impacted. “It’s pretty much everything.”

Inflation-pinched consumers may face a surge in prices for fruits, vegetables and nuts imported from Mexico, including avocados — just in time for the Super Bowl on Feb. 9.

"I’m actually scared to see what actually gets affected," said Javier Ilhuicatzi, who spent part of his Sunday stopping to get grocery items at El Rey. He said he grew up coming to the store, and the older he gets, the more he has to double check his receipts.
“It’s hard enough trying to work a normal job and trying to support yourself with the little groceries you can get," Ilhuicatzi said.

The U.S. imported more than $45 billion in agricultural products from Mexico in 2023, including fresh strawberries, raspberries, tomatoes and beef, according to the U.S. Department of Agriculture. 

"Grocery stores operate on really tiny margins," said Scott Lincicome, vice president of general economics at the Cato Institute. "They can't eat the tariffs, especially when you talk about things like avocados that basically all of them — 90% — come from Mexico. You're talking about guacamole tariffs right before the Super Bowl."

While the future is uncertain, Gomez said the employees at the store are prepared to help their customers through whatever is in store with the tariffs. 

“This is not only going to impact the Hispanic community, it’s going to impact everybody," Gomez said.

The tariffs are set to go into effect Tuesday, Feb. 4 at 12:01 a.m. ET.