The first weeks of President Donald Trump’s administration have created international uncertainty, particularly around trade and immigration.
During his first week in office, the president signed 10 executive orders on immigration and expressed his interest in performing mass deportations while bolstering border security, according to the Associated Press.
In February, The White House announced a 25% additional tariff on imports from Canada and Mexico under the pretense of a “national emergency” caused by “illegal aliens and drugs” under the International Emergency Economic Powers Act.
Those tariffs changed continuously in the weeks that followed, with implementation dates shifting and certain goods getting exemptions.
These changes from Washington D.C. have had significant impacts on the countries that border the U.S. to the north and south, and are trickling down to California.
Consular officials from Mexico and Canada spoke with Insight Host Vicki Gonzalez about how their countries are navigating the Trump Administration’s constantly shifting policies.
Immigration fears within local Mexican communities
In early February, Sacramento experienced many false or unverifiable claims of ICE activity including a social media post warning of immigration officers near a West Sacramento elementary school.
Local immigrant-owned or operated businesses were hit hard by this misinformation as the immigrant families they rely on began avoiding public places and spending less money as concerns of deportation grew.
Christian Tonatiuh González Jiménez is the Consul General of Mexico in Sacramento. He encourages his community to be skeptical of things they see or read on social media, or hear from a neighbor or family member.
“We have always told them, ‘Let’s confirm that information is a true fact,’ because we have seen, for example [on] social media, community members have just seen an ICE patrol around our neighborhood… and that’s maybe a photo taken in 2017 [or] 2018.”
González hopes people in the community will stay informed. “Stay calm and know that they have to be informed about their rights.You are not alone. We are here to translate, representing the government of Mexico,” he said.
When asked if he’s seen an increase in demand or calls to the Mexican consulate in Sacramento in the last two months, González said the demand has been larger in districts close to the border.
“For example, our consulate[s] in San Diego and in Los Angeles, maybe they have received more calls regarding this compared to [Northern] California,” he explained.
“We have received calls, not a lot. What people are requesting at this stage for us is they want to have all their papers ready. They want to have documentation, they need a passport, they need their IDs. They want to get prepared.”
González also said the consulate has received questions regarding if Americans need a visa to visit Mexico, which he called “fake news.”
“Americans don’t need a visa to travel to Mexico,” he said. “You are more than welcome to visit us. Mexico loves our tourists and you can for sure come and join us here.”
An escalating trade war and California’s economy
According to the California Chamber of Commerce, Canada is one of the state’s largest international trading partners.
In 2023, California exported over $18 billion worth of goods — from agricultural products to electronics and automobiles — and over $15 billion in services to Canada. In return, the state took in over $16 billion worth of Canadian products.
Rana Sarkar, Consul General of Canada in San Francisco said thousands of jobs in California are directly dependent on trade with his country.
"We often forget that Canadians are the biggest consumers of California products,” he explained, “be they from in the Central Valley… almonds, various fruits and vegetables.”
“Looking at what Canada trades with the United States, we trade a lot of intermediate goods… we build things together.”
Sarkar said the trade war could seriously affect housing construction, which is in critically short supply across California. He said over 80% of softwood lumber imports in the United States come from Canada.
“We’re going to see price shocks,” Sarkar explained. “The estimates right now from home builders associations in the United States… could be up to $10,000 per home.”
He also said Canada provides 60% of imported oil and gas to the United States and over 70% of the country’s potash, which farmers use to improve crop yields. “Farmers who are planting right now, they’re going to start to see a dramatic price increase,” Sarkar said.
Sarkar said Canadians are making their opposition to the U.S.’s economic actions known with their wallets, by boycotting or removing American-made goods.
He highlighted the impact on California’s wine industry. According to the Canadian government, California exports around $510 million worth of alcohol and other beverages to Canada annually.
On March 4, Canada announced a 25% tariff on American wine as part of a larger package targeting $30 billion of imported U.S. goods.
We’re the biggest buyer of California wine,” Sarkar said. “There’s one buyer in Ontario… which is the single largest buyer of wine in the world. They’re taking California product[s] off their shelf right now.”
The Consul General also noted Canadian investors are thinking twice about putting their money into California.
“They're asking questions about how certain the investment and trade environment [is] going to be, if we have to look at our phone in order to figure out how the next 10 days or the next 10 years are going to play out,” Sarkar said.
Canadians are also voting with their feet. “We have hundreds of thousands of trips a year into California by Canadians,” Sarkar said.
“We're seeing Canadians choosing not to come this year, or choosing to hold their offsites, their company events, their weddings, many other things that sustain a lot of the California regional economy,” he explained.
“People are holding back right now, in this moment of uncertainty.”
