Local businesses react to 90-day tariff pause between United States, China

PALM SPRINGS, Calif. (KESQ) – The stock market surged and locals are reacting following the latest news on reciprocal tariffs between the United States and China.

In a joint statement with China, the White House announced on Monday the 90-day roll back of tariffs between the two countries.

The change will take effect on Wednesday, May 14th. Tariffs on Chinese goods will be reduced from 145% to 30%, while China's levies on American goods drop from 125% to 10%.

"100% hurting our bottom line," says Judy Valdez, the manager of AJ Market in Palm Springs.

The Filipino grocery store, which sells a wide variety of imported Asian goods, has had to raise prices on some items as imports have become more expensive. A bottle of fish sauce, which used to sell for seven dollars, is now being sold for $12.99. It's just one example Valdez provided of the increased prices.

"It's absolutely terrifying because about 90% of our products are imported," she explains. "[The customers] have seen the prices already increase and they are a bit scared. A lot of people have changed their buying patterns where they're holding back on stuff they spend."

In contrast, other Palm Springs businesses, like Repair Lab, are seeing minimal impacts. Mark Vanderpol, the owner of the repair shop, says he typically avoids ordering parts from China in the first place. The parts he does source from Chinese companies, though, have been harder to come by.

"There are like websites like Alibaba, AliExpress that we've noticed that it like they have actually completely just cut off from even like selling things right now," says Vanderpol.

Vanderpol says batteries and screens are the only two types of parts he sources from Chinese companies. Even then, the increases have been, by and large, marginal.

"I haven't seen a big increase in anything else. Batteries have gone up a few bucks. That's about it."

With the uncertain nature of tariffs and price increases, Vanderpol says he has steered clear of raising prices at his business. "We've chosen not to really talk about or implement it in our business just yet because we don't want to scare people off or make intimidations, you know, of things getting more expensive unless they really are going to get more expensive."

At AJ Market, Valdez says that uncertainty is the big worry moving forward, especially as the summer months slow business further. "Everything feels on and off, so everyone's still unsure. So it's really nice that it’s paused, but like, I'm pretty sure people are still going to hold the buying patterns as well, because of how summer is going to be. Obviously, the electricity bill is going to go up and all that stuff, so people are still holding on to their money."

Be sure to stay with KESQ for the latest on these tariffs.