Business leaders discuss Trump tariff concerns at California-Mexico Business Forum in L.A.

DOWNTOWN LOS ANGELES (KABC) -- Tariffs were a major talking point of this year's California-Mexico Business Forum, held in downtown Los Angeles on Wednesday. President-Elect Donald Trump has said he will institute tariffs on Mexico when he takes office in January.

The Consul General of Mexico said his country should be seen as part of the solution, not the problem, when it comes to trading with the United States.

"This talk about tariffs and about various trade concerns me because it means shooting ourselves in the foot. Because it means making everything more expensive and making the operation of this common shared platform more difficult," said Carlos Gonzalez Gutierrez, the Consul General of Mexico.

Mexico is the United States' biggest trade partner. Followed by Canada and then China, according to the federal government-

U.S. imports from Mexico totaled nearly $455 billion in 2022, according to the latest figures from the Office of the U.S. Trade Representative, the office that keeps track of what's being brought in from Mexico. In 2021 the U.S. imported just over $140 billion in machinery and mechanical appliances. Also in 2021, agriculture products imported from Mexico totaled nearly $40 billion. Those figures are higher than the previous year.

So what will tariffs do to the price of goods to California and U.S. consumers? The experts at the California-Mexico Business Forum strongly believe that what the new Trump administration is proposing could open the door to negotiating new trade agreements...

"I think that this is a first step. I wouldn't say it's going to become a reality. I think it's a negotiating tactic from President-Elect Trump," said Martin Breidsprecher with the L.A. Area Chamber of Commerce.

"Mexico, U.S. and Canada are not only selling goods to each other, we're actually innovating together and we're building things together for the rest of the world. So I think betting on the North American project is the right bet," added Fernando Sepulveda, with the U.S./Mexico Business Association.

One import that's expected not to be hit by tariffs is tourism. The number of visitors to California from Mexico is expected to increase.

Adam Burke with the L.A. Tourism & Convention Board said that "as they look to renegotiate the U.S.-Mexico-Canada Act, I think that's actually an opportunity to really lean in on tourism as the one thing that everyone can agree is beneficial to all of the countries involved."

They're all hoping they can negotiate new trade agreements that benefit Mexico, Canada, the United States and the consumers.