As the co-owner of La Providencia, a New Jersey-based retailer and wholesaler of high-quality authentic and ethnic handmade artisan products from Mexico, Lilia Rios knows what the pledge by President-elect Donald Trump to add a 25% tariff on all products from Mexico will mean: Higher prices.
Which will mean a tougher business climate for her.
“We have to pass the prices along,” she said. “We can’t afford not to.”
Rios also believes Trump’s proposed tariffs (on Mexico, Canada and China) will hurt all American and American companies — not the countries being targeted.
But while she is hoping they won’t be implemented — or won’t last long if they are — she said she is supportive of Trump’s overall goal of addressing immigration.
Rios, who immigrated to the U.S. in 2005 from central Mexican state of Jalisco, said she understands what comes with an uncontrolled influx of people into the country: Chaos.
Rios said unchecked immigration is creating a situation that’s bad for the economy — and business leaders such as her, who came to the U.S. in search of the American Dream, as she did at the age of 22.
“This country is based on capitalism,” she said. “The American dream means that if you work hard, you can make money.
“I think we have made a mistake by allowing too many people in who are looking for a free place to live and giving them vouchers for meals. The government is paying for them with our tax money.”
If this keeps up, Rios fears the U.S. will lose its economic edge.
“If people aren’t working, we will become a poor country,” she said.
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Immigration reform is the most challenging of issues facing Hispanics in the U.S. — especially for Hispanic business owners.
And if you think they all view the issue the same way, then you probably don’t understand why so many Hispanics are moving toward the Republican party, as the recent election showed.
Of course, if you think all Hispanics who voted for Republicans think the same way, you’d be wrong, too.
Rios, who came to the country legally, has great empathy and respect for those who have come here chasing the American Dream. She isn’t for mass deportations. In fact, she thinks the government should take a fresh look at the undocumented workers already here. The ones working as hard as she does.
“We have millions of people here living undocumented that they are working hard and paying taxes — but they are invisible to the government,” she said. “We should document the people that are already here, working hard, making money and paying taxes.”
Rios thinks the country needs a re-set around immigration. And while she’s not supportive of Trump’s proposed tariff, she said she can only hope it spur actions that will have a positive impact.
“We have to do something,” she said.
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Rios has a great affinity for her native land, which is why she opened La Providencia just months after arriving back in 2005.
The multi-million-dollar business, which now has nearly 5,000 customers in 22 states, sells items that help keep the culture and history of Mexico alive in the U.S.
The company’s target audience is second-generation Mexican Americans who were born here.
“We import tradition and sell culture,” she said. “We want to help the children of immigrants understand and appreciate their culture.”
The future of her business is tied to keeping the connection to Mexico – even for those born here who have never been south of the border.
The company’s impact, however, goes all the way back to Mexico.
Rios proudly boosts that she employs more than 500 artisans, providing them and their families an opportunity to make have a decent standard of living without coming to the U.S.
She welcomes those who do want to chase the American Dream – as long as they follow the rules when coming here.
“There needs to be a better system,” she said. “We are not even checking on the backgrounds of people coming here. In some cases, they are criminals.”
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Rios knows first-hand the detrimental impact that tariffs – and global emergencies – can have.
Tariffs during Trump’s first administration impacted her business, as La Providencia also imports from China.
She had to raise the price of a popular steaming pot from $16 to $44 because of increased costs.
Of course, those tariffs weren’t as bad as the costs associated with supply chain issues during the pandemic, which caused huge spikes in prices. Rios said the cost of shipping a container went from $7,500 to $24,000 almost overnight, forcing her to double the cost of some items.
Rios said the cost of her most popular item, a molcajete stone used for making guacamole or salsa that goes for $16, has remained the same since the company started. That streak likely will end.
“We can’t keep absorbing that extra cost,” she said.
Of course, Rios is hoping the increase won’t last long. She points to Trump’s first time in office, when many of his tariffs were quickly rescinded as they proved to only be a burden on those in this country.
“Eight years ago, he put in tariffs, but they only lasted about 30 days,” she said. “He saw that the only people they were hurting were the people in this country.”
She hopes history repeats itself. But if it doesn’t – if the proposed tariffs last far longer – she hopes it will help with the ultimate goal.
“We have to protect capitalism,” she said. “That is what this country is based on.”
