ALBANY, N.Y. (NEWS10) — Cinco De Mayo is supposed to be a time of celebration for Mexican culture, instead it’s a time of angst for El Loco Mexican Café in Albany as they fear the effects US tariffs will have on their operating costs.
From ingredients —
“We make everything here including our salad dressing which people love, but when you talk about the price of oil and lemon juice and the spices that go into this stuff…” said Patrick Noonan owner of El Loco Mexican Cafe.
To supplies —
“Latex, vinyl gloves. All the containers. All the plastics” said Noonan.
Noonan is feeling the pinch of the President’s 25 percent tariffs on Mexican goods, on top of 145 percent tariffs on Chinese goods. Critical ingredients like Crisco, corn husks and flour are up to $6 more expensive now. It doesn’t help that the wet forecast is washing away customers for the usually busy Cinco de Mayo through Mothers Day stretch. Noonan fears all these factors could lead to emptier tables which would result in cutbacks.
“I think you’re gonna have layoffs, you’re gonna have places close…you just..you can’t afford to be here” said Noonan.
Economic commentator Thomas Fellows says lower to middle income families will feel it the most for luxuries like restaurant dining.
“They are being affected a lot more because again they don’t have that discretionary spending,” Fellows explained.
Part of President Trump’s justification for tariffs is to boost US manufacturing. Fellows however says companies opt to manufacture in countries like Mexico because of cheap labor.
“That’s why they have the comparative advantage over many things including clothing toys produce” Fellows explained. “But when people have the absolute and comparative advantage it makes sense to trade with them,” Fellows continued.
While El Loco’s owner isn’t crazy about the tariffs —
“We’re very optimistic about what’s going on down here with Mother’s Day and graduation, so we encourage everyone to come down and continue to support us despite the tariff” said Noonan.