CLEVELAND — At Ohio City's Momocho modern Mexican restaurant, they are bracing for tariffs on Mexican goods. Whether it's their imported Mexican beer, the tequila, or the more than 2,000 avocados they use every week for their signature guacamole.
All are subject to a 5% tariff starting on Monday.
Owner and Executive Chef Eric Williams says he'll likely be able to absorb initial tariffs. However, President Trump is vowing to increase tariffs by 5% each month - up to 25% by October - to push Mexico into action to stop the flow of illegal immigration.
It's not just avocados and other fresh fruits and vegetables -- it's automobiles too.
Automakers warn that tariffs will raise sticker prices for new vehicles sold in U.S. that are built in Mexico. If the full 25% tariffs are imposed on October 1, Mexican-made vehicles could see a sticker price increase of more than $10,000, and even vehicles built in the U.S. using Mexican-made imported parts could see price hikes in the hundreds, even thousands, of dollars, according to industry experts.
Republican U.S. Senator Rob Portman is concerned. "They'll retaliate. In other words, Mexico will put tariffs on our stuff, so we love Mexicans buying our stuff from Ohio - we sell a lot of agriculture and manufacturing products to them, and it's bigger than China for us," he said recently.
And as top Republicans said Tuesday they'd consider a congressional reversal of the tariffs, local businesses wait to see who blinks first.
President Trump said on Tuesday that Republican senators would be "foolish" to try to block his tariffs. Mexican officials are in Washington to start talks on Wednesday with the Trump Administration to see if an agreement can be reached to avoid the tariffs.