The San Diego County Board of Supervisors today received a comprehensive report detailing the potential impacts of Trump-era tariffs and trade policies on the region’s economy. Acting Chair Lawson-Remer, an economist and former senior advisor to the U.S Treasury Department raised concerns about the ripple effects on key industries and the County’s budget, calling attention to the economic risks posed by uncertain federal trade policies.

“Our County budget and services are built on the strength of our economy. Any threat to our industries is a threat to the safety nets and resources we provide to San Diego’s families,” said Chair Lawson-Remer. “We need federal leaders to recognize that these tariffs represent more than just an economic policy—they’re a direct threat to the County’s budget and our region’s progress in tackling homelessness, protecting public safety, expanding healthcare access, transforming our behavioral health system and addressing the rising cost of living.”

San Diego County’s general fund depends on revenues generated by a thriving local economy. Disruptions to trade, manufacturing, and cross-border commerce will reduce sales tax revenues and strain resources, especially as vulnerable populations, including newly displaced workers, require additional support. Local governments across the region are already grappling with constrained budgets, and with President Trump’s Project 2025 Agenda poised to decrease federal support, the County is now warning of similar challenges on the horizon.

Tariffs: A Direct Threat to San Diego’s Economy

Tariffs on intermediate goods—the essential components used in manufacturing finished products—pose a significant risk to San Diego’s economy, which is deeply reliant on cross-border trade and global supply chains.

• 60% of U.S-Mexico trade involves intermediate goods, such as semiconductors for smartphones, plastics for medical devices, and fabrics for clothing. These goods are vital to San Diego’s life sciences, technology, and manufacturing sectors.

• The Otay Mesa Port of Entry serves as a critical hub for this trade, facilitating:

  • 52% of U.S. medical device imports.

  • 73% of U.S. television imports.

  • 69% of U.S. semiconductor imports.

Higher Costs for Businesses and Consumers

• Tariffs on intermediate goods increase production costs for San Diego businesses, leading to higher prices for finished products like electronics, clothing, and healthcare devices.

• Small businesses, which make up 98% of U.S. exporters, are particularly vulnerable as they lack the resources to absorb these increased costs, reducing their global competitiveness.

Ripple Effects Across the Supply Chain

• Tariffs disrupt the seamless flow of intermediate goods, creating delays and bottlenecks at key trade points like Otay Mesa. These disruptions can lead to reduced production, job losses, and fewer affordable goods for consumers.

Chair Lawson-Remer highlighted the broader consequences:

“These tariffs are not just a tax on businesses or other countries—they’re a tax on American working families. They increase the cost of everyday goods, disrupt jobs, and strain the very industries that sustain our economy and fund the County Budget to deliver the critical services that San Diegans rely on.” The Supervisor continued, “we’re calling on federal leaders to stop threatening to create a massive hole in the County’s budget with shortsighted trade wars. Trade policies should support the American businesses, workers, and families who rely on a thriving economy here in San Diego.”

To see the entire presentation received by the Board of Supervisors, click HERE