Title: Rising Dollar Set to Impact Local Businesses with Imported Goods: Canaco
The projected increase in the value of the dollar against the peso, anticipated with the upcoming presidency of Donald Trump, is expected to affect local businesses dealing with imported products. This concern was raised by Julián Palombo Saucedo, president of the National Chamber of Commerce, Services, and Tourism (Canaco Servytur). He emphasized, “The issue, more than tariffs, is the current exchange rate. When you convert your dollars into pesos for imported products, you’ll end up paying more pesos.”
The ongoing rise in the dollar’s value will notably influence the cost of imported goods such as chicken, meat, and salmon, which have become significantly pricier over the past six months. Palombo further noted such increases would continue to impact businesses and consumers alike.
Donald Trump, President-elect of the United States, has announced intentions to increase tariffs by up to 25% on products imported from Mexico and Canada starting in January 2025. This move, particularly concerning Mexico, is aimed at addressing issues such as migration and fentanyl production.
Palombo cautioned that increased tariffs could have severe repercussions on the manufacturing and industrial sectors. “Goods produced here will have higher costs, potentially leading to unemployment. Higher product costs discourage sales, resulting in reduced manufacturing. If companies scale back production, they might need to cut their workforce,” he warned.
Secondary Article: The Financial Implications for Small and Medium-Sized Enterprises
In addition to the concerns raised by Canaco, micro, small, and medium-sized enterprises (MSMEs) are anticipated to face challenges due to wage increases. Local business groups have expressed concerns about how these businesses will absorb additional labor costs without passing them onto consumers, especially amidst rising product import expenses.
A leading businessman in the area explained, “Increasing wages is always positive for employees, but the timing with dollar hikes and potential tariff increases means these decisions need to be carefully managed by small businesses to stay afloat.”
Furthermore, changes in budget allocations for 2025 could bring reductions to crucial sectors like security and education in Baja California. Such financial reconfigurations may also exacerbate the challenges faced by local businesses trying to navigate an already tricky economic environment.
As the financial landscape continues to evolve, local businesses are encouraged to explore strategies and partnerships that could help mitigate these challenges, ensuring resilience despite the economic shifts prompted by changes in government policies and international market conditions.