California businesses react to President Trump’s tariffs

CAMPBELL, Calif. (NBC, KYMA/KECY) - As Canada, China and Mexico react to new tariffs imposed on them by President Donald Trump, some California businesses are also preparing for the fallout.

Fresh avocadoes are a main ingredient in many of the dishes at Ricos in Campbell. The manager says she's already paying $80 for a box and is worried that price will increase significantly because of newly ordered 25% tariffs on products from Mexico.

Builders are also bracing for increased costs of lumber after Trump ordered a 25% tariff on goods from Canada. Brandon Dariano, the Vice President of A. Dariano Construction in San Jose, says that will likely mean the cost of new construction and remodels will go up.

"We would try to do the best we can to not to bring it over to the customer, but it's not an overhead cost. We can play with as much so at the end of the day the customer would probably see an 8% increase as well," Dariano explained.

In a social media post from over the weekend, President Trump acknowledged, "Will there be some pain? Yes, maybe," adding, "It will all be worth the price that must be paid."

President Trump also reacted to Canada's Prime Minister Justin Trudeau announcing a 25% retaliatory tariff on U.S. goods: "We subsidize Canada to the tune of $200 billion a year and for what? What do we get out of it? We don't get anything out of it."

The White House says the tariffs will help with border security and reduce the flow of fentanyl into the u.S.

Now, Mexico says it plans to implement new tariffs on the U.S. and China says it will file a lawsuit with the World Trade Organization (WTO) to take counter measures of its own.

But for the local businesses, the question remains how they will handle a possible increase in day-to-day costs.