How Tariffs Threaten Economic Mobility for Latino Communities
While much of the current public conversation has focused on how tariffs are rattling the stock market, we must look beyond Wall Street and examine the real and lasting consequences for working-class communities and small business owners. These tariffs act as regressive taxes—raising the cost of everyday goods while offering no corresponding relief to families already facing high inflation and stagnant wages. For Latino entrepreneurs, who have a driving force behind economic growth in California, the stakes are particularly high.
Many Latino-owned businesses operate on thin margins in industries that are highly sensitive to price fluctuations—such as construction, retail, and food services. These entrepreneurs are also more likely to be self-employed, self-financed and less likely to be incorporated, which limits their ability to absorb sudden cost increases or navigate supply chain disruptions. Without targeted policy interventions, these trade policies risk widening the wealth gaps and undermining the fragile economic mobility that Latino communities have fought to build.
The ripple effects of these tariffs will also be felt in regional recovery efforts. In the wake of devastating wildfires across Los Angeles and the state, rebuilding will need to rely heavily on small, locally owned construction and contracting firms—many of which are Latino-owned. Increasing the cost of imported materials will delay reconstruction, strain public recovery budgets, and make it harder for working families to rebuild their lives.
Policymakers must prioritize the needs of the public—not just large corporations—by safeguarding support for small businesses, particularly those led by entrepreneurs of color. If left unaddressed, the cumulative effect of these tariffs could be a setback for inclusive economic growth and climate resilience in California and beyond.
Additional LPPI reading:
10 Facts about Self-Employed Latinas in California (March 2025)
12 Facts about Self-Employed Women in California (March 2025)
Wildfires and Latino Communities: Analysis of Residents, Workers, and Jobs in LA County Fire Evacuation Zones (January 2025)
5 Facts to Strengthen Resilience for California’s Small Businesses (October 2024)
Dr. Silvia R. González, is director of research at the UCLA Latino Policy and Politics Institute.
