There is no doubt that the agriculture industry dominates the Monterey Bay region. Agriculture generates a substantial portion of direct economic output, and has a significant number of jobs directly related. It is the leading industry in Monterey and San Benito counties and within the top five in Santa Cruz County.
Tariffs, coupled with immigration policies, will decimate and cripple the agriculture sector not only in the Monterey Bay region but in all ag-producing counties across the country with significant exports.
Mexico and Canada hold two of the top three spots for Monterey County exports: In 2023, growers shipped more than 190 million pounds of produce to those countries, according to the county’s annual crop report.
While the Trump Administration wants to use tariffs as a bargaining chip to address drug trafficking and illegal immigration issues, whether those results come to pass remains to be seen.
What is certain is that those federal policies will cripple our regional economy, one that is both local and global.
Our local farms bring food to tables around the world. They also supply jobs that support families and our local economy. Farms support myriad other related industries and workers, from irrigation equipment and fertilizer suppliers, to soil scientists, truckers and more. Agricultural workers and their families eat in local restaurants, buy their boots at local shops, and buy movie tickets in local theaters.
The Administration’s proposed tariffs are a double-edged sword that ultimately hurt manufacturers, small businesses and consumers.
Building costs directly affect housing costs. Manufacturing costs rise if parts and materials cost more to import.
Ultimately, the impact of the administration’s tough trade stance will be felt in higher costs for gas and groceries, and everything from construction materials to car parts, computer chips, washing machines, and medicines. And that hurts American consumers as well as manufacturing competitiveness.
Tariffs and retaliatory efforts by other countries are likely to increase the costs of food products for U.S. consumers, reduce U.S. export demand and strengthen the position of other major exporters. According to one analysis by the Peterson Institute for International Economics, some of Trump’s bigger tariff proposals would cost the typical American household over $2,600 a year.
Whether you’re a lettuce grower in Gonzales or buying salad in Aptos, purchasing a truck in Hollister, or upgrading a laptop in Salinas, these tariffs — and retaliatory tariffs in response — will be felt broadly and deeply, likely in the form of higher prices, inflation and supply chain disruptions. And anxieties come in the wake of an industry already facing outsized turmoil due to threats of mass deportations, anti-immigrant sentiments and back-to-back years of climate-related challenges.
All that gets shaken up when costs rise, industries get rattled, and U.S. farmers face new obstacles to remain competitive in the global marketplace. While Monterey County’s agriculture industry is the largest in the tri-county region, Santa Cruz and San Benito counties also have sizable farm acreage that plays a significant role in their economies. And agriculture is just one industry sector among many likely to be impacted by new tariffs imposed on trade partners.
So, when the stability of industries is threatened and consumers’ pocketbooks are increasingly pinched, is it worth the cost of these punitive policies?
Tahra Goraya is President and CEO of Monterey Bay Economic Partnership (MBEP), a regional member-supported nonprofit organization consisting of public, private, and civic entities located throughout the counties of Monterey, San Benito and Santa Cruz. Founded in 2015, its mission is to improve the economic health and quality of life in the region.
