Bay Area businesses brace for tariffs on imports from Mexico, Canada and China: Possible impact here

SAN FRANCISCO (KGO) -- President Donald Trump's tariffs on China, Canada and Mexico go into effect Saturday.

They could impact everything from avocados and tequila to new cars, appliances and electronics.

President Donald trump had been threatening tariffs to ensure greater cooperation from the countries on stopping illegal immigration and smuggling chemicals used for fentanyl.

Some local businesses that are expecting to take a hit because of the taxes on imports.

At Luz de Luna in San Francisco's Mission District, you'll find all the colors of the rainbow and handicrafts in all shapes and sizes. New stuff is always arriving at Denise Gonzales's store.

President Trump says new tariffs on Saturday will include 25% tariffs on imports from Mexico and Canada and an additional 10% tariff on Chinese products. 80% of the items at Luz de Luna are imported from Mexico. Owner Denise Gonzales says the new tariffs are really going to hurt her business.

"We are not a necessity. Our items are luxury... People have to first think about eating. So, this is something that worries me. Are they going to afford us?" said Gonzales.

Economists explain the impact of these tariffs.

"It's like have an extra tax added to the goods that you and I and everyone else buys every day for things that are imported," said Jim Wilcox, UCB Professor of Economics.

MORE: These prices could climb within days if Trump slaps tariffs on Canada and Mexico

Wilcox explained how much the US counts on Mexico and Canada.

"We are huge trading partners of Mexico and Canada," said Wilcox.

"From Canada, we import lots of energy; we import lots of auto parts and some partially completed vehicles."

Wilcox went on to say, "From Mexico, we import a lot of vehicles. Various auto manufacturers have set up plants in Mexico. And we import them in the United States. We also import agriculture things like avocados, fruits and vegetables. We import beer from Mexico. "

JVS Imports in South San Francisco is a wholesale distributor that sells spirits and wines.

"About 15% of our business is produced imported from Mexico. That includes wines, mezcals, tequilas, pulque," said Sam Filmus, President of JVS Imports.

Sam Filmus says the tariffs will hurt his small business.

"We probably will not bring those items anymore or the sales will automatically go down," said Filmus. "Our commission-based reps will suffer. My company and our consumers will suffer."

Small business owners like Gonzales say things have been tough and tariffs could make it a lot tougher on everyone-businesses and consumers.

"It would be more expensive. It makes me sad because so many people won't be able to afford it," said Gonzalez.