As the United States imposes new tariffs on imports from China, Mexico, and the European Union, local businesses and residents in El Paso are beginning to experience the effects. Economists say these tariffs, aimed at protecting U.S. industries, are also driving up costs and jeopardizing international relationships.

“I’ve had to raise prices and services on everything from car parts to electronics,” said Javier Avena, owner of a small auto repair shop. “A lot of these parts come from outside the country. Customers get upset, but it’s not my fault it’s the tariffs.”

According to the U.S. International Trade Commission (USITC), the latest round of tariffs, which includes a 25% tax on certain automotive and industrial goods, has already disrupted supply chains and increased costs for manufacturers and small businesses.

“Trade policies like these always come with consequences,” said Dr. Carla Brenner, a trade policy analyst with the Brookings Institution. “While the intent is to protect American jobs, tariffs can cause inflationary pressure at home and economic strain abroad. In border cities like El Paso, the effects are magnified.”

Some residents are more critical due to some grocery items going up in price. Dante Perez, a resident in El Paso has had issues buying some necessities due to income issues. ” Right now since I’m tight on money, I don’t got enough to be treating myself, I only have the bare minimum amount of money to only buy essentials for my survival.

These issues can also apply to families that are in poverty, they are not able to provide enough for kids to thrive and in some cases parents are forced to take kids out of the educational system to have them work to make money for the family. This disrupts the ability for kids when they grow up to have skills to get a job or even pursue a career.

Data from the Peterson Institute for International Economics shows that since 2018, cumulative tariffs have led to a 5% average increase in consumer prices on imported goods. While the Biden administration has made some adjustments to used tariff policies, many remain in place during global political tension.

Recently, a federal court rejected a set of proposed tariffs from former President Donald Trump, which would have expanded duties on steel, aluminum, and electronics. This could also affect school districts because they may not be able to afford electronics, supplies, and other objects that help students succeed.

Still, some El Paso residents are looking past some issues and trying to focus on saying it can be good.

“I think it’s about time now with these Tariffs, we can focus on American-made products,” said Barbara Dominguez, an employee of a local printing business . “If that means now we can save a little more on buying local, I’m okay with that. But I do feel bad for small businesses that are struggling.”