San Diego leaders in D.C. as Trump tariffs threaten binational region
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San Diego leaders traveled to Washington, D.C., this week for their annual advocacy trip on behalf of the region's economy, just as the Trump administration's tariff threats shook global financial markets.
Follow the money: The San Diego region imported $61.6 billion in goods in 2024, according to the Observatory of Economic Complexity.
- The region exported $32.4 billion of goods the same year, OEC estimated.
The big picture: The $250 billion CaliBaja regional economy relies on the linked economic relationships between San Diego and Imperial counties in the U.S. and communities from Ensenada to Mexicali and Tecate in Mexico.
- That includes not just the nearly 60,000 people who cross the border for work every day, but also an estimated $70 billion in cross-border trade, according to the San Diego Regional Chamber of Commerce.
Driving the news: Jessica Anderson, interim CEO of the Chamber, which organizes the annual binational delegation, said this year's visit comes at a pivotal time and that the impact of tariffs would be a theme of their meetings.
- "We have a great task ahead of us, to turn into an opportunity what is right now uncertainty," said Ana Santana, a Mexican congresswoman from the state of Baja California who is on the trip
State of play: Financial markets had a third consecutive tumultuous day after President Trump's announcement last week of sweeping tariffs.
- On Monday, Trump threatened additional levies against China while opening the door to negotiations with other nations.
- In February, tariffs against Mexico and Canada specifically posed a greater potential impact on California than on any state but Texas.
Between the lines: Gov. Gavin Newsom is fighting back against Trump's tariffs by having the state pursue its own global trade deals to exclude California-made products from retaliatory tax hikes.
- While Newsom can't broker tariff deals with other countries, he can negotiate with international private companies and persuade them not to target the state's goods and industries, the Sacramento Bee explained.
- The size of California's economy (fifth largest in the world), shipping ports, agricultural exports (almonds, dairy, wine, etc.) and collection of Fortune 500 companies gives the state leverage — and a lot to lose.
What they're saying: After Trump's announcement, Newsom warned of "major disruptions to cross-border supply chains" in the California-Baja mega-region, including San Diego, affecting semiconductors and aerospace and automotive products.
- "If these goods are taxed each time they cross the border, the price of the final product will rise and ultimately be passed on to California consumers," his announcement said.
Zoom in: China already responded with economic sanctions on four local defense and aerospace companies, the Union-Tribune reported.
- Kratos Defense, Cubic Corp., Firestorm Labs and Source Intelligence are restricted from doing business with the country.
- Gene sequencing giant Illumina was put on China's blacklist in February.