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"content": "\u003cp>Never have so few commuters enjoyed so much attention.\u003c/p>\n\u003cp>Drivers and passengers trickled into the dingy garage beneath the MacArthur Freeway in Oakland’s Grand Lake neighborhood early Tuesday, hoping to take part in the well-publicized\u003ca href=\"https://www.kqed.org/news/12051292/casual-carpool-the-bay-areas-quirkiest-commute-is-having-a-2025-revival-relaunch\"> revival of the East Bay’s casual carpool\u003c/a>.\u003c/p>\n\u003cp>Crews from three TV stations, two radio stations and one online news site greeted them. And by Camille Bermudez, the Alameda resident who has nearly single-handedly organized the carpool relaunch.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>As drivers and riders began to roll into the squat concrete structure on Lake Park Boulevard at 7 a.m., Bermudez played the role of carpool concierge and emcee.\u003c/p>\n\u003cp>Bermudez greeted other commuters like old friends, gave newbies a heads-up on how the system is supposed to work at the Lake Park location, and even introduced reporters to arriving carpoolers.\u003c/p>\n\u003cp>“We just had one successful carpooler!” she said after the first of half a dozen or so carpools rolled out toward a freeway on-ramp. “We’re thrilled to be back.”\u003c/p>\n\u003cfigure id=\"attachment_12051486\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12051486\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-05-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1334\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-05-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-05-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-05-KQED-1536x1025.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Camille Bermudez in Oakland, near where the Casual Carpool pick-up location will be under the 580 freeway, on Aug. 8, 2025. \u003ccite>(Martin do Nascimento/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“This is Chuy,” she said, introducing a new acquaintance, San Ramon resident Chuy Perez, as he pulled up in an SUV. “Chuy is a casual carpooler from years before, and he just told me he’s been commuting for about 40 years.”\u003c/p>\n\u003cp>Perez, a technician for AT&T, said he’s been perplexed that it has taken so long for the carpool to return.\u003c/p>\n\u003cp>“I’ve periodically been looking online to see what’s been going on,” he said. “I couldn’t understand why it’s taken so long to get it back.”\u003c/p>\n\u003cp>Ray Lee, who drives from the East Bay to teach at San Francisco’s A.P. Giannini Middle School, echoed that sentiment.[aside postID=news_12051292 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-Casual-Carpool-MD-11.jpg']“Probably the last two years, occasionally I’d go: ‘Hey, is this still a thing?'” Lee told reporters, who clustered at his driver’s side window. “… So I’m crossing my fingers that this is working out.”\u003c/p>\n\u003cp>Riders didn’t materialize for Perez and Lee, and both of them wound up leaving for the city solo.\u003c/p>\n\u003cp>Drivers who arrived a little later, however, were luckier.\u003c/p>\n\u003cp>Joshua Reiten said he has been waiting to pick up riders for the first time since COVID-19 stay-at-home and social distancing orders ended the four-decade-old casual carpool in March 2020. He said he was drawn back by all the advantages he remembers from the past.\u003c/p>\n\u003cp>“I just loved that it was seemingly always available, inexpensive, often more convenient, often more comfortable than BART or a bus,” Reiten said. “It was a great way to catch up on the news, because often they would have news playing in the car.”\u003c/p>\n\u003cp>Not that rides in the before-times were always perfect. Reiten mentioned one particularly “uncomfortable ride.”\u003c/p>\n\u003cp>“I got into a car, and the woman who was driving had her bird loose in the car,” Reiten said. “When I stepped in, I saw the bird flying around. The bird cage was next to me, in the back. There was bird … mess … all over the place, and I immediately got out and said, ‘I’m not riding in this car.'”\u003c/p>\n\u003cfigure id=\"attachment_12051481\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12051481\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-03-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-03-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-03-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-03-KQED-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Cars drive along the 580 freeway in Oakland on Aug. 8, 2025. \u003ccite>(Martin do Nascimento/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Two Oakland residents who caught rides into the city on Tuesday morning said they see casual carpooling as something that can help build and sustain community.\u003c/p>\n\u003cp>“I’m a really big advocate of community support and mutual aid,” Brionna Lewis, a marketing strategist, said. “I think this is a way of people helping people in ways that sometimes our government can’t support. I know they’re cutting and changing bus routes and things like that, and I feel like this is a great way for folks to step up and support each other.”\u003c/p>\n\u003cp>Jahan Sagafi, an attorney, said he always appreciated the efficiency and comfort of the casual carpool.\u003c/p>\n\u003cp>But he also appreciated “the feeling that it was a community effort.”\u003c/p>\n\u003cp>“And not just a community of people who already know each other and are loyal to each other, but people who don’t know each other can pull together for that one moment and help each other out,” Sagafi said. “I think that’s very Bay Area, and that’s kind of one of the wonderful things about living in this community.”\u003c/p>\n\u003cfigure id=\"attachment_12051483\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12051483\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-08-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1334\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-08-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-08-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-08-KQED-1536x1025.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">The parking lot under the 580 freeway where the Casual Carpool pick up location will be in Oakland on Aug. 8, 2025. \u003ccite>(Martin do Nascimento/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>All told, Tuesday’s relaunch involved about half a dozen carpools — including three in which journalists rode and one more driven by organizer Camille Bermudez.\u003c/p>\n\u003cp>While that may seem like a modest result, the mode’s advocates recalled that until now, a system that once brought thousands of people to work each day was pretty much dead.\u003c/p>\n\u003cp>“No one’s done what Camille just managed to do,” said Greg Riessen, a traffic engineer who’s developed his own \u003ca href=\"https://rapidcarpool.com/\">carpooling app\u003c/a>. “This is a real accomplishment.”\u003c/p>\n\u003cp>Bermudez said she considers the half-dozen carpools that made it to the city a success. “I’m absolutely thrilled to see the momentum picking up,” she said.\u003c/p>\n\u003cp>And she said she’ll be greeting carpoolers at the Grand Lake garage site, at 533 Lake Park Ave., every morning this week.\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>As drivers and riders began to roll into the squat concrete structure on Lake Park Boulevard at 7 a.m., Bermudez played the role of carpool concierge and emcee.\u003c/p>\n\u003cp>Bermudez greeted other commuters like old friends, gave newbies a heads-up on how the system is supposed to work at the Lake Park location, and even introduced reporters to arriving carpoolers.\u003c/p>\n\u003cp>“We just had one successful carpooler!” she said after the first of half a dozen or so carpools rolled out toward a freeway on-ramp. “We’re thrilled to be back.”\u003c/p>\n\u003cfigure id=\"attachment_12051486\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12051486\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-05-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1334\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-05-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-05-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-05-KQED-1536x1025.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Camille Bermudez in Oakland, near where the Casual Carpool pick-up location will be under the 580 freeway, on Aug. 8, 2025. \u003ccite>(Martin do Nascimento/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“This is Chuy,” she said, introducing a new acquaintance, San Ramon resident Chuy Perez, as he pulled up in an SUV. “Chuy is a casual carpooler from years before, and he just told me he’s been commuting for about 40 years.”\u003c/p>\n\u003cp>Perez, a technician for AT&T, said he’s been perplexed that it has taken so long for the carpool to return.\u003c/p>\n\u003cp>“I’ve periodically been looking online to see what’s been going on,” he said. “I couldn’t understand why it’s taken so long to get it back.”\u003c/p>\n\u003cp>Ray Lee, who drives from the East Bay to teach at San Francisco’s A.P. Giannini Middle School, echoed that sentiment.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“Probably the last two years, occasionally I’d go: ‘Hey, is this still a thing?'” Lee told reporters, who clustered at his driver’s side window. “… So I’m crossing my fingers that this is working out.”\u003c/p>\n\u003cp>Riders didn’t materialize for Perez and Lee, and both of them wound up leaving for the city solo.\u003c/p>\n\u003cp>Drivers who arrived a little later, however, were luckier.\u003c/p>\n\u003cp>Joshua Reiten said he has been waiting to pick up riders for the first time since COVID-19 stay-at-home and social distancing orders ended the four-decade-old casual carpool in March 2020. He said he was drawn back by all the advantages he remembers from the past.\u003c/p>\n\u003cp>“I just loved that it was seemingly always available, inexpensive, often more convenient, often more comfortable than BART or a bus,” Reiten said. “It was a great way to catch up on the news, because often they would have news playing in the car.”\u003c/p>\n\u003cp>Not that rides in the before-times were always perfect. Reiten mentioned one particularly “uncomfortable ride.”\u003c/p>\n\u003cp>“I got into a car, and the woman who was driving had her bird loose in the car,” Reiten said. “When I stepped in, I saw the bird flying around. The bird cage was next to me, in the back. There was bird … mess … all over the place, and I immediately got out and said, ‘I’m not riding in this car.'”\u003c/p>\n\u003cfigure id=\"attachment_12051481\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12051481\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-03-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-03-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-03-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-03-KQED-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Cars drive along the 580 freeway in Oakland on Aug. 8, 2025. \u003ccite>(Martin do Nascimento/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Two Oakland residents who caught rides into the city on Tuesday morning said they see casual carpooling as something that can help build and sustain community.\u003c/p>\n\u003cp>“I’m a really big advocate of community support and mutual aid,” Brionna Lewis, a marketing strategist, said. “I think this is a way of people helping people in ways that sometimes our government can’t support. I know they’re cutting and changing bus routes and things like that, and I feel like this is a great way for folks to step up and support each other.”\u003c/p>\n\u003cp>Jahan Sagafi, an attorney, said he always appreciated the efficiency and comfort of the casual carpool.\u003c/p>\n\u003cp>But he also appreciated “the feeling that it was a community effort.”\u003c/p>\n\u003cp>“And not just a community of people who already know each other and are loyal to each other, but people who don’t know each other can pull together for that one moment and help each other out,” Sagafi said. “I think that’s very Bay Area, and that’s kind of one of the wonderful things about living in this community.”\u003c/p>\n\u003cfigure id=\"attachment_12051483\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12051483\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-08-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1334\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-08-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-08-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-08-KQED-1536x1025.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">The parking lot under the 580 freeway where the Casual Carpool pick up location will be in Oakland on Aug. 8, 2025. \u003ccite>(Martin do Nascimento/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>All told, Tuesday’s relaunch involved about half a dozen carpools — including three in which journalists rode and one more driven by organizer Camille Bermudez.\u003c/p>\n\u003cp>While that may seem like a modest result, the mode’s advocates recalled that until now, a system that once brought thousands of people to work each day was pretty much dead.\u003c/p>\n\u003cp>“No one’s done what Camille just managed to do,” said Greg Riessen, a traffic engineer who’s developed his own \u003ca href=\"https://rapidcarpool.com/\">carpooling app\u003c/a>. “This is a real accomplishment.”\u003c/p>\n\u003cp>Bermudez said she considers the half-dozen carpools that made it to the city a success. “I’m absolutely thrilled to see the momentum picking up,” she said.\u003c/p>\n\u003cp>And she said she’ll be greeting carpoolers at the Grand Lake garage site, at 533 Lake Park Ave., every morning this week.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"title": "Casual Carpool, the Bay Area’s Quirkiest Commute, Is Having a 2025 Revival Relaunch",
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"content": "\u003cp>If you’ve been waiting for\u003ca href=\"https://www.kqed.org/news/11934347/will-casual-carpool-ever-come-back\"> the return of the casual carpool\u003c/a>, or if you’ve been dying to try it out, this is your moment.\u003c/p>\n\u003cp>On Tuesday, a campaign to bring back the Bay Area tradition — a completely organic system of riding with strangers to get across the bridge faster and for cheap — after a five-year hiatus caused by the pandemic is staging a relaunch at a single location in Oakland’s Grand Lake neighborhood.\u003c/p>\n\u003cp>The effort’s main organizer said she hopes — and believes — it will be the start of a renaissance for the communal commute mode in which San Francisco-bound drivers once picked up complete strangers from East Bay street corners to take advantage of carpool lanes to and around the Bay Bridge toll plaza.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Camille Bermudez, a merchandiser for a San Francisco apparel company, started casual carpooling as a teenager, riding across the bay to her San Francisco high school with her father, Carlos. She said her fond memories of that experience, and the desire to have more commute options from her home in Alameda, drove her to try to resurrect carpooling.\u003c/p>\n\u003cp>Earlier efforts\u003ca href=\"https://www.kqed.org/news/11934347/will-casual-carpool-ever-come-back\"> to attract drivers and riders\u003c/a> back to casual carpooling came up short. But Bermudez said a number of factors are coming together to make the time ripe for a revival.\u003c/p>\n\u003cfigure id=\"attachment_12051481\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12051481\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-03-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-03-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-03-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-03-KQED-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Cars drive along the 580 freeway in Oakland on Aug. 8, 2025. \u003ccite>(Martin do Nascimento/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“Part of what’s changing now is that there are a lot more return-to-office mandates,” she said in an interview. “So just as we were told 5 years ago to stay home, we’re also now being told, ‘Time to start coming back into the office.’ That’s part of why we think now is the perfect time to bring casual carpool back.”\u003c/p>\n\u003cp>She also points to the fact that solo commuters driving electric cars will lose their privileged access to carpool lanes next month. She said she thinks that rising bridge tolls are making people more open to a famously low-cost commute option that, on its best days, is faster than public transit across the bay.[aside postID=news_12050256 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/07/250319-SF-SPEED-CAMERAS-MD-06_qed.jpg']Carpool drivers pay half of the current Bay Bridge toll of $4. Depending on the driver, riders may kick in a dollar for their ride and often pay nothing.\u003c/p>\n\u003cp>“So time savings, flexibility, cost savings — all reasons for casual carpool and its return,” Bermudez said.\u003c/p>\n\u003cp>She said she’s encouraged by the \u003ca href=\"https://www.reddit.com/r/bayarea/comments/1m7s1il/casual_carpool_update_survey_period_is_done_and\">results\u003c/a> of a \u003ca href=\"https://docs.google.com/forms/d/e/1FAIpQLSe6r9mCOAtzZr0HAbq6cIfjv0k7QQ70VSrRclCkcxJFis4SAg/viewform\">survey\u003c/a> she posted on Reddit earlier this summer that indicated wide interest in trying casual carpooling, including among those who have never taken a ride-with-a-stranger trip.\u003c/p>\n\u003cp>The feedback Bermudez got from the survey led her to set Aug. 12 as the relaunch date, initially for two locations in Oakland and one in Berkeley. She’s since narrowed the focus for Casual Carpool 2.0 to a single site — the parking lot at Lake Park and Lakeshore Avenue in Oakland’s Grand Lake neighborhood. She said her survey showed that location had the highest number of potential drivers and riders.\u003c/p>\n\u003cp>Bermudez said she’ll consider the effort successful if that first pickup point is “up and running, and running beautifully — where both driver and passenger can find somebody to do their ad hoc carpool.”\u003c/p>\n\u003cp>Over the longer term, she envisions a community-driven effort to resurrect more of the area’s \u003ca href=\"https://511.org/carpool/casual\">20-plus former carpool spots\u003c/a> and for the system to become self-sustaining, just like in pre-pandemic days.\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>If you’ve been waiting for\u003ca href=\"https://www.kqed.org/news/11934347/will-casual-carpool-ever-come-back\"> the return of the casual carpool\u003c/a>, or if you’ve been dying to try it out, this is your moment.\u003c/p>\n\u003cp>On Tuesday, a campaign to bring back the Bay Area tradition — a completely organic system of riding with strangers to get across the bridge faster and for cheap — after a five-year hiatus caused by the pandemic is staging a relaunch at a single location in Oakland’s Grand Lake neighborhood.\u003c/p>\n\u003cp>The effort’s main organizer said she hopes — and believes — it will be the start of a renaissance for the communal commute mode in which San Francisco-bound drivers once picked up complete strangers from East Bay street corners to take advantage of carpool lanes to and around the Bay Bridge toll plaza.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Camille Bermudez, a merchandiser for a San Francisco apparel company, started casual carpooling as a teenager, riding across the bay to her San Francisco high school with her father, Carlos. She said her fond memories of that experience, and the desire to have more commute options from her home in Alameda, drove her to try to resurrect carpooling.\u003c/p>\n\u003cp>Earlier efforts\u003ca href=\"https://www.kqed.org/news/11934347/will-casual-carpool-ever-come-back\"> to attract drivers and riders\u003c/a> back to casual carpooling came up short. But Bermudez said a number of factors are coming together to make the time ripe for a revival.\u003c/p>\n\u003cfigure id=\"attachment_12051481\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12051481\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-03-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-03-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-03-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/250808-CASUAL-CARPOOL-MD-03-KQED-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Cars drive along the 580 freeway in Oakland on Aug. 8, 2025. \u003ccite>(Martin do Nascimento/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“Part of what’s changing now is that there are a lot more return-to-office mandates,” she said in an interview. “So just as we were told 5 years ago to stay home, we’re also now being told, ‘Time to start coming back into the office.’ That’s part of why we think now is the perfect time to bring casual carpool back.”\u003c/p>\n\u003cp>She also points to the fact that solo commuters driving electric cars will lose their privileged access to carpool lanes next month. She said she thinks that rising bridge tolls are making people more open to a famously low-cost commute option that, on its best days, is faster than public transit across the bay.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Carpool drivers pay half of the current Bay Bridge toll of $4. Depending on the driver, riders may kick in a dollar for their ride and often pay nothing.\u003c/p>\n\u003cp>“So time savings, flexibility, cost savings — all reasons for casual carpool and its return,” Bermudez said.\u003c/p>\n\u003cp>She said she’s encouraged by the \u003ca href=\"https://www.reddit.com/r/bayarea/comments/1m7s1il/casual_carpool_update_survey_period_is_done_and\">results\u003c/a> of a \u003ca href=\"https://docs.google.com/forms/d/e/1FAIpQLSe6r9mCOAtzZr0HAbq6cIfjv0k7QQ70VSrRclCkcxJFis4SAg/viewform\">survey\u003c/a> she posted on Reddit earlier this summer that indicated wide interest in trying casual carpooling, including among those who have never taken a ride-with-a-stranger trip.\u003c/p>\n\u003cp>The feedback Bermudez got from the survey led her to set Aug. 12 as the relaunch date, initially for two locations in Oakland and one in Berkeley. She’s since narrowed the focus for Casual Carpool 2.0 to a single site — the parking lot at Lake Park and Lakeshore Avenue in Oakland’s Grand Lake neighborhood. She said her survey showed that location had the highest number of potential drivers and riders.\u003c/p>\n\u003cp>Bermudez said she’ll consider the effort successful if that first pickup point is “up and running, and running beautifully — where both driver and passenger can find somebody to do their ad hoc carpool.”\u003c/p>\n\u003cp>Over the longer term, she envisions a community-driven effort to resurrect more of the area’s \u003ca href=\"https://511.org/carpool/casual\">20-plus former carpool spots\u003c/a> and for the system to become self-sustaining, just like in pre-pandemic days.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"slug": "compliance-with-californias-right-to-repair-law-needs-fixing-report-finds",
"title": "Compliance With California’s Right to Repair Law Needs Fixing, Report Finds",
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"content": "\u003cp>A different kind of \u003ca href=\"https://pirg.org/california/media-center/new-report-one-year-after-california-implemented-right-to-repair-law-many-companies-still-do-not-support-repair/\">report card\u003c/a> is taking electronics and appliance companies back to school — assigning their products grades, based not on quality or aesthetics, but on \u003ca href=\"https://www.kqed.org/news/11976367/bay-areas-fix-it-culture-thrives-as-right-to-repair-law-takes-effect-soon\">how readily available\u003c/a> they make repair materials.\u003c/p>\n\u003cp>Apple’s iPhone 16 Pro got an “A,” while Motorola’s razr ultra 2025 flunked according to recent findings by the U.S. Public Interest Research Group, a nonpartisan consumer advocacy organization.\u003c/p>\n\u003cp>Its July report looked at how well companies are complying with \u003ca href=\"https://www.kqed.org/news/11976367/bay-areas-fix-it-culture-thrives-as-right-to-repair-law-takes-effect-soon\">California’s right to repair law\u003c/a>, which went into effect a year ago this month. The law requires manufacturers of electronics and appliances to make the parts, tools and information necessary to repair their products available to consumers.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“ Our main takeaway is that manufacturers need to be doing a better job of complying with California’s right to repair law,” said Jenn Engstrom, the state director of CALPIRG, the state’s branch of U.S. PIRG.\u003c/p>\n\u003cp>The organization graded 25 products in five categories, including cellphones, dishwashers, tablets, gaming consoles, and laptops, and assigned them letter grades based on how well they made repair documentation and parts available to consumers.\u003c/p>\n\u003cp>In general, manufacturers of electronics, like Apple, which has a robust \u003ca href=\"https://support.apple.com/self-service-repair\">self-repair page\u003c/a>, received higher grades than appliance makers. All five laptops surveyed got an “A” or “B.”\u003c/p>\n\u003cfigure id=\"attachment_12049608\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12049608\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/07/240202-FixitClinic-KSM-22_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/07/240202-FixitClinic-KSM-22_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/07/240202-FixitClinic-KSM-22_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/07/240202-FixitClinic-KSM-22_qed-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Andy Caughman (right) holds a clock while Charlie Kennedy (left) inspects it at a Fixit clinic in Millbrae on Saturday, Feb. 3, 2024. \u003ccite>(Kathryn Styer Martínez/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>No dishwasher got above a “C,” meaning repair help was limited, at best, according to the report.\u003c/p>\n\u003cp>An “F” grade indicates that no parts or repair manuals are available.\u003c/p>\n\u003cp>KQED reached out to several of the companies mentioned in the report and only heard back from LG, the South Korean multinational electronics company, which got an “F” for one of its dishwashers.\u003c/p>\n\u003cp>“The CALPRIG grade is baffling,” said John I. Taylor, senior vice president of LG Electronics USA Inc., in an emailed statement. “Their report is incorrect. The service manual and parts for this LG dishwasher are available to consumers in California.”[aside postID=news_11976367 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/240202-FIXITCLINIC-KSM-19-KQED-1020x680.jpg']A search of LG’s website produced only an owner’s manual, not a repair manual, for the dishwasher surveyed in the report. This doesn’t comply with California’s right to repair law, according to Engstrom.\u003c/p>\n\u003cp>When KQED asked an LG customer service representative to provide a repair manual via online chat, the technician responded: “Please be informed that only authorized technicians can use that, and we are not allowed to share it with the customer.”\u003c/p>\n\u003cp>Furnished with the text of California’s right to repair law, the agent advised that a customer could call a local authorized service center, which would provide a repair manual. When KQED called a local authorized service center, a representative responded, “We don’t sell repair manuals” and hung up.\u003c/p>\n\u003cp>According to Taylor, LG consumers can request a service manual by calling LG’s Customer Service line. He also cited a link to a website for an authorized parts distributor where spare parts could be purchased for the dishwasher in question.\u003c/p>\n\u003cp>“For right to repair to work effectively, it should not be so hard for consumers to get access to the repair materials needed to fix their devices,” Engstrom said of the exchange with LG.\u003c/p>\n\u003cp>She hopes the report calls attention to this kind of checkered compliance with the state law.\u003c/p>\n\u003cfigure id=\"attachment_11974708\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11974708\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/240202-FIXITCLINIC-KSM-12-KQED.jpg\" alt=\"A large room filled with groups of people clustered in groups around tables.\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/240202-FIXITCLINIC-KSM-12-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/240202-FIXITCLINIC-KSM-12-KQED-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/240202-FIXITCLINIC-KSM-12-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/240202-FIXITCLINIC-KSM-12-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/240202-FIXITCLINIC-KSM-12-KQED-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/240202-FIXITCLINIC-KSM-12-KQED-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">People attend a Fixit clinic hosted by the County of San Mateo’s Office of Sustainability at the library in Millbrae, California, on Saturday, Feb. 3, 2024. \u003ccite>(Kathryn Styer Martínez/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“[California] Attorney General Bonta may need to step in when companies fail to do so,” she said.\u003c/p>\n\u003cp>Bonta’s office has a website where consumers can \u003ca href=\"https://oag.ca.gov/contact/consumer-complaint-against-business-or-company\">file complaints \u003c/a>against businesses that violate the law. This system has been effective in forcing companies into compliance, Engstrom said, citing a case when a company released repair materials after a \u003ca href=\"https://www.youtube.com/watch?v=FSS9LmRjOhU\">YouTuber who runs a repair business filed a complaint\u003c/a>.\u003c/p>\n\u003cp>The attorney general’s office did not respond to a request for comment about the report.\u003c/p>\n\u003cp>The right to repair movement has been gaining traction nationwide. Eight states have such laws covering consumer electronics, and more states have similar laws covering wheelchairs and cars, according to Engstrom.\u003c/p>\n\u003cp>“Once they go into effect, a full one-third of the US population is covered by some sort of right to repair,” said Peter Mui, the founder of Fixit Clinic, a Bay Area-based pop-up clinic where volunteers help guests perform repairs.\u003c/p>\n\u003cp>But he acknowledged that getting manufacturers to comply was another matter. “We’re going to need enforcement action taken by state attorneys general,” he said.\u003c/p>\n\u003cp>The repair advocacy group \u003ca href=\"http://repair.org\">repair.org\u003c/a> maintains a “\u003ca href=\"https://www.repair.org/know-your-rights\">Know your rights\u003c/a>” page for people living in right-to-repair states.\u003c/p>\n\u003cp>\u003c/p>\n",
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"excerpt": "It’s been one year since California’s right to repair law went into effect. A new report finds that some companies are doing better than others in complying with it. ",
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"title": "Compliance With California’s Right to Repair Law Needs Fixing, Report Finds | KQED",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>A different kind of \u003ca href=\"https://pirg.org/california/media-center/new-report-one-year-after-california-implemented-right-to-repair-law-many-companies-still-do-not-support-repair/\">report card\u003c/a> is taking electronics and appliance companies back to school — assigning their products grades, based not on quality or aesthetics, but on \u003ca href=\"https://www.kqed.org/news/11976367/bay-areas-fix-it-culture-thrives-as-right-to-repair-law-takes-effect-soon\">how readily available\u003c/a> they make repair materials.\u003c/p>\n\u003cp>Apple’s iPhone 16 Pro got an “A,” while Motorola’s razr ultra 2025 flunked according to recent findings by the U.S. Public Interest Research Group, a nonpartisan consumer advocacy organization.\u003c/p>\n\u003cp>Its July report looked at how well companies are complying with \u003ca href=\"https://www.kqed.org/news/11976367/bay-areas-fix-it-culture-thrives-as-right-to-repair-law-takes-effect-soon\">California’s right to repair law\u003c/a>, which went into effect a year ago this month. The law requires manufacturers of electronics and appliances to make the parts, tools and information necessary to repair their products available to consumers.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“ Our main takeaway is that manufacturers need to be doing a better job of complying with California’s right to repair law,” said Jenn Engstrom, the state director of CALPIRG, the state’s branch of U.S. PIRG.\u003c/p>\n\u003cp>The organization graded 25 products in five categories, including cellphones, dishwashers, tablets, gaming consoles, and laptops, and assigned them letter grades based on how well they made repair documentation and parts available to consumers.\u003c/p>\n\u003cp>In general, manufacturers of electronics, like Apple, which has a robust \u003ca href=\"https://support.apple.com/self-service-repair\">self-repair page\u003c/a>, received higher grades than appliance makers. All five laptops surveyed got an “A” or “B.”\u003c/p>\n\u003cfigure id=\"attachment_12049608\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12049608\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/07/240202-FixitClinic-KSM-22_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/07/240202-FixitClinic-KSM-22_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/07/240202-FixitClinic-KSM-22_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/07/240202-FixitClinic-KSM-22_qed-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Andy Caughman (right) holds a clock while Charlie Kennedy (left) inspects it at a Fixit clinic in Millbrae on Saturday, Feb. 3, 2024. \u003ccite>(Kathryn Styer Martínez/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>No dishwasher got above a “C,” meaning repair help was limited, at best, according to the report.\u003c/p>\n\u003cp>An “F” grade indicates that no parts or repair manuals are available.\u003c/p>\n\u003cp>KQED reached out to several of the companies mentioned in the report and only heard back from LG, the South Korean multinational electronics company, which got an “F” for one of its dishwashers.\u003c/p>\n\u003cp>“The CALPRIG grade is baffling,” said John I. Taylor, senior vice president of LG Electronics USA Inc., in an emailed statement. “Their report is incorrect. The service manual and parts for this LG dishwasher are available to consumers in California.”\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>A search of LG’s website produced only an owner’s manual, not a repair manual, for the dishwasher surveyed in the report. This doesn’t comply with California’s right to repair law, according to Engstrom.\u003c/p>\n\u003cp>When KQED asked an LG customer service representative to provide a repair manual via online chat, the technician responded: “Please be informed that only authorized technicians can use that, and we are not allowed to share it with the customer.”\u003c/p>\n\u003cp>Furnished with the text of California’s right to repair law, the agent advised that a customer could call a local authorized service center, which would provide a repair manual. When KQED called a local authorized service center, a representative responded, “We don’t sell repair manuals” and hung up.\u003c/p>\n\u003cp>According to Taylor, LG consumers can request a service manual by calling LG’s Customer Service line. He also cited a link to a website for an authorized parts distributor where spare parts could be purchased for the dishwasher in question.\u003c/p>\n\u003cp>“For right to repair to work effectively, it should not be so hard for consumers to get access to the repair materials needed to fix their devices,” Engstrom said of the exchange with LG.\u003c/p>\n\u003cp>She hopes the report calls attention to this kind of checkered compliance with the state law.\u003c/p>\n\u003cfigure id=\"attachment_11974708\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11974708\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/240202-FIXITCLINIC-KSM-12-KQED.jpg\" alt=\"A large room filled with groups of people clustered in groups around tables.\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/240202-FIXITCLINIC-KSM-12-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/240202-FIXITCLINIC-KSM-12-KQED-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/240202-FIXITCLINIC-KSM-12-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/240202-FIXITCLINIC-KSM-12-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/240202-FIXITCLINIC-KSM-12-KQED-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/240202-FIXITCLINIC-KSM-12-KQED-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">People attend a Fixit clinic hosted by the County of San Mateo’s Office of Sustainability at the library in Millbrae, California, on Saturday, Feb. 3, 2024. \u003ccite>(Kathryn Styer Martínez/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“[California] Attorney General Bonta may need to step in when companies fail to do so,” she said.\u003c/p>\n\u003cp>Bonta’s office has a website where consumers can \u003ca href=\"https://oag.ca.gov/contact/consumer-complaint-against-business-or-company\">file complaints \u003c/a>against businesses that violate the law. This system has been effective in forcing companies into compliance, Engstrom said, citing a case when a company released repair materials after a \u003ca href=\"https://www.youtube.com/watch?v=FSS9LmRjOhU\">YouTuber who runs a repair business filed a complaint\u003c/a>.\u003c/p>\n\u003cp>The attorney general’s office did not respond to a request for comment about the report.\u003c/p>\n\u003cp>The right to repair movement has been gaining traction nationwide. Eight states have such laws covering consumer electronics, and more states have similar laws covering wheelchairs and cars, according to Engstrom.\u003c/p>\n\u003cp>“Once they go into effect, a full one-third of the US population is covered by some sort of right to repair,” said Peter Mui, the founder of Fixit Clinic, a Bay Area-based pop-up clinic where volunteers help guests perform repairs.\u003c/p>\n\u003cp>But he acknowledged that getting manufacturers to comply was another matter. “We’re going to need enforcement action taken by state attorneys general,” he said.\u003c/p>\n\u003cp>The repair advocacy group \u003ca href=\"http://repair.org\">repair.org\u003c/a> maintains a “\u003ca href=\"https://www.repair.org/know-your-rights\">Know your rights\u003c/a>” page for people living in right-to-repair states.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"slug": "a-major-wine-company-is-leaving-the-state-as-gen-zs-drinking-habits-shift",
"title": "A Major Wine Company Is Leaving the State, as Gen-Z’s Drinking Habits Shift",
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"headTitle": "A Major Wine Company Is Leaving the State, as Gen-Z’s Drinking Habits Shift | KQED",
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"content": "\u003cp>A major wine distributor plans to leave \u003ca href=\"https://www.kqed.org/news/tag/california\">California\u003c/a> and lay off nearly 2,000 employees this fall, citing changes in the industry that have made the home state of the U.S.’s wine country an “unsustainable” market amid a national downturn.\u003c/p>\n\u003cp>Republic National Distributing Company, one of the biggest alcohol wholesalers in the U.S., announced it would leave the state — and its few thousand California-based brands — last month after experiencing rising costs, supplier changes and “industry headwinds,” CEO Bob Hendrickson said in a statement.\u003c/p>\n\u003cp>RNDC is just one company facing financial strains, as experts warn the wine industry must adapt to consumer preferences. The announcement comes after years of declining wine sales nationally, including in California.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The brand will officially depart Sept. 2, and is set to lay off 1,756 employees based in the state the same day, according to Worker Adjustment and Retraining notices filed last week.\u003c/p>\n\u003cp>“Moving forward, we are using this moment to sharpen our focus and reinvest in the markets where we’re best positioned to grow,” Hendrickson’s statement reads.\u003c/p>\n\u003cp>California sellers shipped 9% fewer cases of wine in the U.S. and abroad in 2022 than in 2021, and another 7% fewer in 2023 than in 2022, according to \u003ca href=\"https://wineinstitute.org/our-industry/statistics/california-us-wine-sales/\">Wine Institute data\u003c/a>.\u003c/p>\n\u003cfigure id=\"attachment_12030737\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12030737\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/230720-HEINOLDS-MHN-06-KQED_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/230720-HEINOLDS-MHN-06-KQED_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/230720-HEINOLDS-MHN-06-KQED_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/230720-HEINOLDS-MHN-06-KQED_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/230720-HEINOLDS-MHN-06-KQED_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/230720-HEINOLDS-MHN-06-KQED_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/230720-HEINOLDS-MHN-06-KQED_qed-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A sommelier pours a glass of wine at Heinold’s First and Last Chance Saloon in Oakland on July 20, 2023. \u003ccite>(Martin do Nascimento/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In 2024, Napa and Sonoma counties — widely considered some of the top wine destinations in the U.S. — saw some of the largest decreases in direct-to-consumer sales throughout the U.S., dropping 12% and 13%, respectively, according to data from Wine Business Analytics.\u003c/p>\n\u003cp>Rob McMillan, a wine business analyst and the founder of Silicon Valley Bank’s wine division, said the reason for the decrease is two-pronged: younger people are drinking less, and people are reaching for more of a variety when they do drink.\u003c/p>\n\u003cp>“It’s changed a lot,” he said, of the number of young people choosing to drink.\u003c/p>\n\u003cp>U.S. government data showed that the amount of alcohol that 20 to 29-year-olds drank was higher than that of older generations. Now, that amount is pretty much the same as older age groups, according to McMillan. He said a higher number of young people are also choosing to abstain from drinking altogether.[aside postID=news_12036225 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/GettyImages-2202727364-1020x680.jpg']The Baby Boomer generation, which has been one of the biggest wine-drinking groups, is also getting older and drinking less, he said. When they do drink, it’s generally at a higher price point than the majority of the bottles that go through large distributors, including Republic.\u003c/p>\n\u003cp>It’s not that people — or young people — who Republic’s brands appeal to aren’t drinking at all, though.\u003c/p>\n\u003cp>In recent years, seltzers, ciders and other canned “ready-to-drink” alcoholic beverages have gained popularity with drinkers of all ages.\u003c/p>\n\u003cp>“There’s more options,” McMillan, who has studied the wine industry for forty years, said. “I’ll have a [ready-to-drink] once in a while. I’m not just a wine drinker, and that’s a change from the past.\u003c/p>\n\u003cp>He said that a young person looking to purchase a drink they know they will like, without breaking the bank, might opt for a canned Moscow Mule or another classic cocktail with a familiar taste, rather than a bottle of wine whose notes may be new.\u003c/p>\n\u003cp>“That’s where you’re going to make that entry,” into alcohol, he said. “We [the wine industry] just haven’t done, I don’t think, as good a job as the spirits category.”\u003c/p>\n\u003cp>While spirit sales are up compared to wine, the whole category of alcohol sales is down. Aside from people choosing to be sober in higher numbers, McMillan said, alcohol is also now rivaled by drinks infused with other psychoactive properties, like cannabis and psilocybin mushrooms.\u003c/p>\n\u003cp>In the near future, he said, the wine industry needs to recalibrate with what consumers now want.\u003c/p>\n\u003cp>“What happened to RNDC isn’t an isolated thing,” according to McMillan. “Fewer consumers, fewer distributors, fewer gallons made — the whole thing has to adjust essentially. It doesn’t mean the whole thing is falling apart, but we’re going through an adjustment.”\u003c/p>\n\u003cp>\u003c/p>\n",
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"excerpt": "The Los Angeles-based company’s decision to lay off more than 1,700 employees reflects wider industry changes, including consumption by younger generations. ",
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"title": "A Major Wine Company Is Leaving the State, as Gen-Z’s Drinking Habits Shift | KQED",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>A major wine distributor plans to leave \u003ca href=\"https://www.kqed.org/news/tag/california\">California\u003c/a> and lay off nearly 2,000 employees this fall, citing changes in the industry that have made the home state of the U.S.’s wine country an “unsustainable” market amid a national downturn.\u003c/p>\n\u003cp>Republic National Distributing Company, one of the biggest alcohol wholesalers in the U.S., announced it would leave the state — and its few thousand California-based brands — last month after experiencing rising costs, supplier changes and “industry headwinds,” CEO Bob Hendrickson said in a statement.\u003c/p>\n\u003cp>RNDC is just one company facing financial strains, as experts warn the wine industry must adapt to consumer preferences. The announcement comes after years of declining wine sales nationally, including in California.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The brand will officially depart Sept. 2, and is set to lay off 1,756 employees based in the state the same day, according to Worker Adjustment and Retraining notices filed last week.\u003c/p>\n\u003cp>“Moving forward, we are using this moment to sharpen our focus and reinvest in the markets where we’re best positioned to grow,” Hendrickson’s statement reads.\u003c/p>\n\u003cp>California sellers shipped 9% fewer cases of wine in the U.S. and abroad in 2022 than in 2021, and another 7% fewer in 2023 than in 2022, according to \u003ca href=\"https://wineinstitute.org/our-industry/statistics/california-us-wine-sales/\">Wine Institute data\u003c/a>.\u003c/p>\n\u003cfigure id=\"attachment_12030737\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12030737\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/230720-HEINOLDS-MHN-06-KQED_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/230720-HEINOLDS-MHN-06-KQED_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/230720-HEINOLDS-MHN-06-KQED_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/230720-HEINOLDS-MHN-06-KQED_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/230720-HEINOLDS-MHN-06-KQED_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/230720-HEINOLDS-MHN-06-KQED_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/230720-HEINOLDS-MHN-06-KQED_qed-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A sommelier pours a glass of wine at Heinold’s First and Last Chance Saloon in Oakland on July 20, 2023. \u003ccite>(Martin do Nascimento/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In 2024, Napa and Sonoma counties — widely considered some of the top wine destinations in the U.S. — saw some of the largest decreases in direct-to-consumer sales throughout the U.S., dropping 12% and 13%, respectively, according to data from Wine Business Analytics.\u003c/p>\n\u003cp>Rob McMillan, a wine business analyst and the founder of Silicon Valley Bank’s wine division, said the reason for the decrease is two-pronged: younger people are drinking less, and people are reaching for more of a variety when they do drink.\u003c/p>\n\u003cp>“It’s changed a lot,” he said, of the number of young people choosing to drink.\u003c/p>\n\u003cp>U.S. government data showed that the amount of alcohol that 20 to 29-year-olds drank was higher than that of older generations. Now, that amount is pretty much the same as older age groups, according to McMillan. He said a higher number of young people are also choosing to abstain from drinking altogether.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>The Baby Boomer generation, which has been one of the biggest wine-drinking groups, is also getting older and drinking less, he said. When they do drink, it’s generally at a higher price point than the majority of the bottles that go through large distributors, including Republic.\u003c/p>\n\u003cp>It’s not that people — or young people — who Republic’s brands appeal to aren’t drinking at all, though.\u003c/p>\n\u003cp>In recent years, seltzers, ciders and other canned “ready-to-drink” alcoholic beverages have gained popularity with drinkers of all ages.\u003c/p>\n\u003cp>“There’s more options,” McMillan, who has studied the wine industry for forty years, said. “I’ll have a [ready-to-drink] once in a while. I’m not just a wine drinker, and that’s a change from the past.\u003c/p>\n\u003cp>He said that a young person looking to purchase a drink they know they will like, without breaking the bank, might opt for a canned Moscow Mule or another classic cocktail with a familiar taste, rather than a bottle of wine whose notes may be new.\u003c/p>\n\u003cp>“That’s where you’re going to make that entry,” into alcohol, he said. “We [the wine industry] just haven’t done, I don’t think, as good a job as the spirits category.”\u003c/p>\n\u003cp>While spirit sales are up compared to wine, the whole category of alcohol sales is down. Aside from people choosing to be sober in higher numbers, McMillan said, alcohol is also now rivaled by drinks infused with other psychoactive properties, like cannabis and psilocybin mushrooms.\u003c/p>\n\u003cp>In the near future, he said, the wine industry needs to recalibrate with what consumers now want.\u003c/p>\n\u003cp>“What happened to RNDC isn’t an isolated thing,” according to McMillan. “Fewer consumers, fewer distributors, fewer gallons made — the whole thing has to adjust essentially. It doesn’t mean the whole thing is falling apart, but we’re going through an adjustment.”\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"content": "\u003cp>As the federal government continues to crack down on immigration, a new report by the Bay Area Council Economic Institute suggests that \u003ca href=\"https://www.kqed.org/news/tag/mass-deportations\">mass deportations\u003c/a> pose a significant threat to California’s economy.\u003c/p>\n\u003cp>The \u003ca href=\"https://www.bayareaeconomy.org/report/economic-impact-of-mass-deportation-in-california/https:/www.bayareaeconomy.org/report/economic-impact-of-mass-deportation-in-california/\">study\u003c/a> released Tuesday details the degree to which immigrants are critical to the state’s economic health. Undocumented residents make up 8% of the California workforce, according to the report, which found that federal policies focused on deportations could cost the state’s gross domestic product output $275 billion in wages and “other direct and indirect economic activity.”\u003c/p>\n\u003cp>“This pretty astronomical amount really surprised us. We knew it would be big, but I don’t think we realized how far-reaching the role undocumented workers play in sustaining the economy in California would be,” said Abby Raisz, research director at the Economic Institute and an author of the report.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The scale of the worst-case deportation scenario is so significant that it would drop California’s global economic ranking two places, putting the state behind the United Kingdom and India, according to the study.\u003c/p>\n\u003cp>The findings point to several industries, such as construction and agriculture, that would suffer greatly from a dramatic drop in immigrant workers. Without undocumented labor, GDP generated by California’s construction industry would shrink by 16%, and agriculture would take a 14% hit.\u003c/p>\n\u003cfigure id=\"attachment_11958488\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11958488\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230817-PETALUMA-VINEYARD-FARMWORKERS-AP-ER-KQED.jpg\" alt=\"Two people wearing long sleeves, hats and face coverings work in a large outdoor field of grape vines on a sunny day.\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230817-PETALUMA-VINEYARD-FARMWORKERS-AP-ER-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230817-PETALUMA-VINEYARD-FARMWORKERS-AP-ER-KQED-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230817-PETALUMA-VINEYARD-FARMWORKERS-AP-ER-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230817-PETALUMA-VINEYARD-FARMWORKERS-AP-ER-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230817-PETALUMA-VINEYARD-FARMWORKERS-AP-ER-KQED-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230817-PETALUMA-VINEYARD-FARMWORKERS-AP-ER-KQED-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Workers trim leaves on Pinot Noir vines in Petaluma on May 21, 2018. \u003ccite>(Eric Risberg/AP Photo)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“We’re talking about workers who are essential to our agricultural industry in our country, who have been working in agriculture for decades. This is not the way we need to treat this workforce,” said Teresa Romero, the first Latina and first immigrant woman to serve as president of the national United Farm Workers union. “Without this workforce … small farms are going to go out of business.”\u003c/p>\n\u003cp>The White House has recently taken note of the toll that increased immigration raids and arrests have had on several sectors. President Donald Trump \u003ca href=\"https://www.pbs.org/newshour/show/trump-administration-pauses-immigration-raids-on-farms-hotels-and-restaurants\">signaled\u003c/a> that the federal government would pause raids at hotels, restaurants and farms, acknowledging that the agriculture and hospitality industries rely heavily on immigrant workers.\u003c/p>\n\u003cp>“It’s a welcome move, but just making the exception for farm workers, hotel workers, or folks at restaurants isn’t enough. The reality is immigrants are a central part of California and the United States,” said Masih Fouladi, executive director of the California Immigrant Policy Center, an immigrant rights advocacy organization.[aside postID=news_12044621 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/06/GettyImages-2218796587-2000x1333.jpg']“Let’s be mindful of the folks being targeted who are in the grocery stores that make sure that we can buy those produce from farms,” Fouladi said. “The folks who make sure that we are safe in hospitals and clinics are being targeted.”\u003c/p>\n\u003cp>The Bay Area Council’s report shows that 63% of the state’s agricultural workers are immigrants, and almost 26% are undocumented. In construction, 41% of workers are immigrants and 14% are undocumented.\u003c/p>\n\u003cp>“In the case of the Bay Area, a lot of that would be concentrated in industries that are really already struggling to find workers, especially in a post-COVID environment where we’re seeing sales tax revenue at an all-time low,” Raisz said. “We’re still struggling to recoup the pre-pandemic economic activity and foot traffic that we experienced before COVID hit.”\u003c/p>\n\u003cp>In addition to labor impacts, the study finds that the average undocumented immigrant pays $7,000 in state, local and federal taxes. Loss of tax revenue from mass deportations would cost local, state and federal budgets a combined $23 billion annually.\u003c/p>\n\u003cp>In addition to a variety of data sources, the report drew on direct interviews with dozens of employers, workers, trade groups and elected officials. They urged continued advocacy to oppose mass deportation efforts, increased state protections and eventually federal reforms that would create pathways to citizenship.\u003c/p>\n\u003cp>“There needs to be a lot of comprehensive immigration reform, and right now, we’re in a crisis moment, and how do we make sure that we don’t fall into a total state of disarray and destabilize all of our industries that keep the state, and frankly, the country, running,” Raisz said.\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>As the federal government continues to crack down on immigration, a new report by the Bay Area Council Economic Institute suggests that \u003ca href=\"https://www.kqed.org/news/tag/mass-deportations\">mass deportations\u003c/a> pose a significant threat to California’s economy.\u003c/p>\n\u003cp>The \u003ca href=\"https://www.bayareaeconomy.org/report/economic-impact-of-mass-deportation-in-california/https:/www.bayareaeconomy.org/report/economic-impact-of-mass-deportation-in-california/\">study\u003c/a> released Tuesday details the degree to which immigrants are critical to the state’s economic health. Undocumented residents make up 8% of the California workforce, according to the report, which found that federal policies focused on deportations could cost the state’s gross domestic product output $275 billion in wages and “other direct and indirect economic activity.”\u003c/p>\n\u003cp>“This pretty astronomical amount really surprised us. We knew it would be big, but I don’t think we realized how far-reaching the role undocumented workers play in sustaining the economy in California would be,” said Abby Raisz, research director at the Economic Institute and an author of the report.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The scale of the worst-case deportation scenario is so significant that it would drop California’s global economic ranking two places, putting the state behind the United Kingdom and India, according to the study.\u003c/p>\n\u003cp>The findings point to several industries, such as construction and agriculture, that would suffer greatly from a dramatic drop in immigrant workers. Without undocumented labor, GDP generated by California’s construction industry would shrink by 16%, and agriculture would take a 14% hit.\u003c/p>\n\u003cfigure id=\"attachment_11958488\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11958488\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230817-PETALUMA-VINEYARD-FARMWORKERS-AP-ER-KQED.jpg\" alt=\"Two people wearing long sleeves, hats and face coverings work in a large outdoor field of grape vines on a sunny day.\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230817-PETALUMA-VINEYARD-FARMWORKERS-AP-ER-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230817-PETALUMA-VINEYARD-FARMWORKERS-AP-ER-KQED-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230817-PETALUMA-VINEYARD-FARMWORKERS-AP-ER-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230817-PETALUMA-VINEYARD-FARMWORKERS-AP-ER-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230817-PETALUMA-VINEYARD-FARMWORKERS-AP-ER-KQED-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/08/230817-PETALUMA-VINEYARD-FARMWORKERS-AP-ER-KQED-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Workers trim leaves on Pinot Noir vines in Petaluma on May 21, 2018. \u003ccite>(Eric Risberg/AP Photo)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“We’re talking about workers who are essential to our agricultural industry in our country, who have been working in agriculture for decades. This is not the way we need to treat this workforce,” said Teresa Romero, the first Latina and first immigrant woman to serve as president of the national United Farm Workers union. “Without this workforce … small farms are going to go out of business.”\u003c/p>\n\u003cp>The White House has recently taken note of the toll that increased immigration raids and arrests have had on several sectors. President Donald Trump \u003ca href=\"https://www.pbs.org/newshour/show/trump-administration-pauses-immigration-raids-on-farms-hotels-and-restaurants\">signaled\u003c/a> that the federal government would pause raids at hotels, restaurants and farms, acknowledging that the agriculture and hospitality industries rely heavily on immigrant workers.\u003c/p>\n\u003cp>“It’s a welcome move, but just making the exception for farm workers, hotel workers, or folks at restaurants isn’t enough. The reality is immigrants are a central part of California and the United States,” said Masih Fouladi, executive director of the California Immigrant Policy Center, an immigrant rights advocacy organization.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“Let’s be mindful of the folks being targeted who are in the grocery stores that make sure that we can buy those produce from farms,” Fouladi said. “The folks who make sure that we are safe in hospitals and clinics are being targeted.”\u003c/p>\n\u003cp>The Bay Area Council’s report shows that 63% of the state’s agricultural workers are immigrants, and almost 26% are undocumented. In construction, 41% of workers are immigrants and 14% are undocumented.\u003c/p>\n\u003cp>“In the case of the Bay Area, a lot of that would be concentrated in industries that are really already struggling to find workers, especially in a post-COVID environment where we’re seeing sales tax revenue at an all-time low,” Raisz said. “We’re still struggling to recoup the pre-pandemic economic activity and foot traffic that we experienced before COVID hit.”\u003c/p>\n\u003cp>In addition to labor impacts, the study finds that the average undocumented immigrant pays $7,000 in state, local and federal taxes. Loss of tax revenue from mass deportations would cost local, state and federal budgets a combined $23 billion annually.\u003c/p>\n\u003cp>In addition to a variety of data sources, the report drew on direct interviews with dozens of employers, workers, trade groups and elected officials. They urged continued advocacy to oppose mass deportation efforts, increased state protections and eventually federal reforms that would create pathways to citizenship.\u003c/p>\n\u003cp>“There needs to be a lot of comprehensive immigration reform, and right now, we’re in a crisis moment, and how do we make sure that we don’t fall into a total state of disarray and destabilize all of our industries that keep the state, and frankly, the country, running,” Raisz said.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"content": "\u003cp>California’s agricultural sector, a small and rare \u003ca href=\"https://www.kqed.org/news/11138262/why-these-central-valley-republicans-stand-by-donald-trump\">base of support for President Trump\u003c/a> in the liberal state, has been flipped on its head in the administration’s first 100 days, but it doesn’t appear that farmers are ready to stop backing him.\u003c/p>\n\u003cp>“He’s hurting the people who voted for him,” Colin Carter, a professor of agricultural and resource economics at UC Davis, told KQED.\u003c/p>\n\u003cp>The industry already struggled to bounce back after the first Trump administration’s trade war with China and the COVID-19 pandemic. Now it is being rocked by what Sen. Alex Padilla called a “triple whammy”: farmworkers rattled by immigration enforcement; exports at risk of dwindling due to tariffs; and risky water use that could leave farmers in short supply this summer.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“Their workforce is worried, scared,” Padilla said \u003ca href=\"https://www.kqed.org/news/12038943/democrats-voice-frustration-and-determination-to-win-back-the-house\">on KQED’s Political Breakdown podcast\u003c/a> this week, adding that even before Trump took office, January \u003ca href=\"https://www.kqed.org/news/12021487/an-immigration-raid-in-kern-county-foreshadows-what-awaits-farmworkers-and-the-economy\">immigration raids in Bakersfield\u003c/a> shook Kern County and the wider farmworker community.\u003c/p>\n\u003cp>Meanwhile, Trump’s ping-ponging tariffs, which have spurred a global trade war, are not only making imports more expensive but also affecting “the growers in California who export so much as part of their business,” Padilla said.\u003c/p>\n\u003cp>The levies have the potential to devastate California’s agriculture industry, according to Carter, who studied the fallout from the 2018–2019 trade war with China during Trump’s first term.\u003c/p>\n\u003cfigure id=\"attachment_12034427\" class=\"wp-caption aligncenter\" style=\"max-width: 1600px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12034427\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4.jpg\" alt=\"\" width=\"1600\" height=\"1067\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4.jpg 1600w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 1600px) 100vw, 1600px\">\u003cfigcaption class=\"wp-caption-text\">President Donald Trump holds a chart as he delivers remarks on reciprocal tariffs during an event in the Rose Garden entitled “Make America Wealthy Again” at the White House in Washington, D.C., on April 2, 2025. \u003ccite>(Brendan Smialowski/AFP via Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Its long-lasting effects show what is at risk for the industry right now, only “much worse,” Carter said.\u003c/p>\n\u003cp>“Prior to the early Trump trade war, China was the number one market for U.S. agriculture [exports],” he said. “The trade war that was initiated by Trump ruined that relationship, and China is no longer number one. And if we look at California, some California products were highly dependent on China.”\u003c/p>\n\u003cp>Prior to 2018, California’s export of tree nuts — mostly pistachios, walnuts and almonds — was lucrative and growing. Ninety-four percent of China’s tree nut imports came from the state.\u003c/p>\n\u003cp>But after China levied tariffs of up to 25% on some agricultural imports in response to U.S. tariffs, that 94% figure dropped to just 53%. California’s farmers lost about $900 million in revenue in one year as a result, according to Carter.[aside postID=news_12038128 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-21-1020x680.jpg']“In the case of almonds, China pivoted towards Australia. Australia can produce almonds; they increased their production and they have 0% tariffs,” Carter said. “[China] started increasing its own production of walnuts instead of buying them from California. It was a growing market, [and] California had a big market share that would have continued to grow, but that was all ruined.”\u003c/p>\n\u003cp>In 2019, Trump awarded $16 billion in relief for affected farms. There was some rebound in the years between that trade war and the current one, but California never regained the dominance it once held.\u003c/p>\n\u003cp>Now, on top of a near halt on exports to China under \u003ca href=\"https://www.npr.org/2025/04/11/nx-s1-5361056/china-us-trade-war-tariffs-escalation\">its 125% levies\u003c/a>, trade wars with California’s other primary export partner in Canada, threaten the same lasting impact.\u003c/p>\n\u003cp>“California agriculture ships fruits and vegetables, wine up to Canada, and that’s already impacted,” Carter said. Canada is the state’s number one importer.\u003c/p>\n\u003cp>Canada imposed a 25% retaliatory tariff on U.S. wine. Instead of looking to California, which \u003ca href=\"https://www.cdfa.ca.gov/Statistics/PDFs/2022-2023_california_agricultural_exports.pdf\">sent 34% of its exported wine\u003c/a> to the country in 2022, Canada is relying on Europe.\u003c/p>\n\u003cp>Even if the trade war ebbs, “they may not come back to California,” Carter told KQED. “Trading in agriculture is a relationship that develops over time. And if one trading partner breaks that relationship, it doesn’t snap back overnight. It takes a long time to regain that trust.”\u003c/p>\n\u003ch2>Farmworkers ‘refusing to come out’\u003c/h2>\n\u003cp>The industry’s workforce is also under significant threat.\u003c/p>\n\u003cp>Immigrants made up at least 50% of the state’s farmworker population between 2010 and 2018, \u003ca href=\"https://www.ppic.org/publication/health-care-access-among-californias-farmworkers/\">according to data\u003c/a> from the Public Policy Institute of California.\u003c/p>\n\u003cp>Those farmworkers are increasingly anxious and fearful, according to Belinda Hernandez-Arriaga, the executive director of Ayudando Latinos A Soñar (ALAS), an advocacy nonprofit for farmworkers in Half Moon Bay. Even though Trump’s threat of mass deportations has not yet been widely carried out, the emotional and psychological fear it’s caused is already having effects.\u003c/p>\n\u003cfigure id=\"attachment_11973461\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11973461\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/01/240123-HMBShootingAnniversary-39-BL.jpg\" alt=\"A person with long hair stands in front of a group of people in a room painted bright orange.\" width=\"1920\" height=\"1280\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/01/240123-HMBShootingAnniversary-39-BL.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/01/240123-HMBShootingAnniversary-39-BL-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/01/240123-HMBShootingAnniversary-39-BL-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/01/240123-HMBShootingAnniversary-39-BL-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/01/240123-HMBShootingAnniversary-39-BL-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Dr. Belinda Hernandez-Arriaga speaks during a roundtable discussion at the ALAS Sueño Center in Half Moon Bay on Jan. 23, 2024. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“There’s a group of farmworkers … here on the North Coast and they have told our team that they’re refusing to come out beyond just their work duties,” Hernandez-Arriaga said. “They don’t want to leave the farm. They don’t want to come out for other things in the community because they don’t want to be at risk, and they’re scared.”\u003c/p>\n\u003cp>She said that in the days immediately after actions like the raids in Kern County, people have stayed home from work, worried that their farms would be targets for Immigration and Customs Enforcement officials, or that they could be stopped at a gas station on their way home.\u003c/p>\n\u003cp>While many immigrants were already fearful of ICE enforcement under the Biden administration, Hernandez-Arriaga said those she spoke to in Half Moon Bay didn’t feel like a target.\u003c/p>\n\u003cp>The current administration, she said, is “saying that they’re focusing on criminals, but that’s not what we’re seeing happening at all. In many ways, that’s what they’re using to market this increased deportation of immigrants.”\u003c/p>\n\u003ch2>Farmers still on Trump’s side\u003c/h2>\n\u003cp>Amid the threats both to agricultural workers and the industry’s economic stability, Padilla said he has been working with farmers and speaking with Republican colleagues about the impacts of Trump’s policies.\u003c/p>\n\u003cp>Blanket tariffs risk retaliation and could harm the farmers they try to protect, warned Shannon Douglass, president of the California Farm Bureau, which advocates for the state’s farmers and ranchers.\u003c/p>\n\u003cfigure id=\"attachment_127407\" class=\"wp-caption aligncenter\" style=\"max-width: 1636px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-127407 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2014/02/4669193811.jpg\" alt=\"\" width=\"1636\" height=\"961\">\u003cfigcaption class=\"wp-caption-text\">California’s agricultural industry could be devastated by dwindling exports due to retaliatory tariffs and the effect of immigration enforcement on farmworkers. \u003ccite>(Frederic J. Brown/AFP-Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“A more strategic approach is targeted enforcement, not blanket tariffs,” she said in a statement. “Strengthening and enforcing provisions of trade agreements like USMCA, expanding export markets and ensuring fair competition through diplomatic discussions would likely protect California farmers without triggering unnecessary retaliation.”\u003c/p>\n\u003cp>Still, Carter noted that Trump didn’t lose very much support from California farmers after his 2018–2019 trade war, and there hasn’t been a dramatic outpouring of opposition from them in recent months either.\u003c/p>\n\u003cp>“It is a mystery,” Carter said.[aside postID=news_12038519 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/GettyImages-1389555319-1020x681.jpg']He added that it could be because farmers believe they’ll benefit from the long-term effects of the tariff policy.\u003c/p>\n\u003cp>“President Trump and [trade advisor] Peter Navarro and [Secretary of Commerce Howard] Lutnick, I’ve seen them on CNN complaining about how U.S. agriculture’s ripped off in Canada, in Australia, in the European Union,” Carter said. “Actually, that’s just not correct.”\u003c/p>\n\u003cp>He said California exports 40% of its agricultural goods and that the U.S. has done well in recent decades because of lower trade barriers.\u003c/p>\n\u003cp>Other farmers are hoping that high prices will be worth it for less restricted water resources, he said. In January, Trump \u003ca href=\"https://www.kqed.org/news/12023248/trump-again-wades-into-california-water-use-fight-drawing-skepticism-from-experts\">announced a “presidential action”\u003c/a> that directed the Secretary of Commerce and the Secretary of the Interior to develop a plan that would route more water from the Sacramento-San Joaquin Delta to dry parts of the state.\u003c/p>\n\u003cp>But he also \u003ca href=\"https://www.npr.org/2025/02/07/nx-s1-5287016/farmers-are-worried-after-trump-released-billions-of-gallons-of-water-in-california\">flushed 2 billion gallons of water\u003c/a> from dams in the Sierra Nevada foothills in February, claiming that it would help give Los Angeles and California “\u003ca href=\"https://www.npr.org/2025/02/07/nx-s1-5287016/farmers-are-worried-after-trump-released-billions-of-gallons-of-water-in-california\">virtually unlimited water\u003c/a>.” The fires had already been fully contained at the time.\u003c/p>\n\u003cp>Carter isn’t sure whether farmers will start to rethink their support for Trump if tariffs begin to make a bigger dent in their revenue, or if their workforce is decimated — as it would be should he carry out his threat of mass deportations.\u003c/p>\n\u003cp>“[Trump] had a lot of support in the Central Valley, and even though they were harmed during the first trade war,” Carter told KQED. “It does make you wonder how much pain they’re willing to take.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>California’s agricultural sector, a small and rare \u003ca href=\"https://www.kqed.org/news/11138262/why-these-central-valley-republicans-stand-by-donald-trump\">base of support for President Trump\u003c/a> in the liberal state, has been flipped on its head in the administration’s first 100 days, but it doesn’t appear that farmers are ready to stop backing him.\u003c/p>\n\u003cp>“He’s hurting the people who voted for him,” Colin Carter, a professor of agricultural and resource economics at UC Davis, told KQED.\u003c/p>\n\u003cp>The industry already struggled to bounce back after the first Trump administration’s trade war with China and the COVID-19 pandemic. Now it is being rocked by what Sen. Alex Padilla called a “triple whammy”: farmworkers rattled by immigration enforcement; exports at risk of dwindling due to tariffs; and risky water use that could leave farmers in short supply this summer.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“Their workforce is worried, scared,” Padilla said \u003ca href=\"https://www.kqed.org/news/12038943/democrats-voice-frustration-and-determination-to-win-back-the-house\">on KQED’s Political Breakdown podcast\u003c/a> this week, adding that even before Trump took office, January \u003ca href=\"https://www.kqed.org/news/12021487/an-immigration-raid-in-kern-county-foreshadows-what-awaits-farmworkers-and-the-economy\">immigration raids in Bakersfield\u003c/a> shook Kern County and the wider farmworker community.\u003c/p>\n\u003cp>Meanwhile, Trump’s ping-ponging tariffs, which have spurred a global trade war, are not only making imports more expensive but also affecting “the growers in California who export so much as part of their business,” Padilla said.\u003c/p>\n\u003cp>The levies have the potential to devastate California’s agriculture industry, according to Carter, who studied the fallout from the 2018–2019 trade war with China during Trump’s first term.\u003c/p>\n\u003cfigure id=\"attachment_12034427\" class=\"wp-caption aligncenter\" style=\"max-width: 1600px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12034427\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4.jpg\" alt=\"\" width=\"1600\" height=\"1067\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4.jpg 1600w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 1600px) 100vw, 1600px\">\u003cfigcaption class=\"wp-caption-text\">President Donald Trump holds a chart as he delivers remarks on reciprocal tariffs during an event in the Rose Garden entitled “Make America Wealthy Again” at the White House in Washington, D.C., on April 2, 2025. \u003ccite>(Brendan Smialowski/AFP via Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Its long-lasting effects show what is at risk for the industry right now, only “much worse,” Carter said.\u003c/p>\n\u003cp>“Prior to the early Trump trade war, China was the number one market for U.S. agriculture [exports],” he said. “The trade war that was initiated by Trump ruined that relationship, and China is no longer number one. And if we look at California, some California products were highly dependent on China.”\u003c/p>\n\u003cp>Prior to 2018, California’s export of tree nuts — mostly pistachios, walnuts and almonds — was lucrative and growing. Ninety-four percent of China’s tree nut imports came from the state.\u003c/p>\n\u003cp>But after China levied tariffs of up to 25% on some agricultural imports in response to U.S. tariffs, that 94% figure dropped to just 53%. California’s farmers lost about $900 million in revenue in one year as a result, according to Carter.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“In the case of almonds, China pivoted towards Australia. Australia can produce almonds; they increased their production and they have 0% tariffs,” Carter said. “[China] started increasing its own production of walnuts instead of buying them from California. It was a growing market, [and] California had a big market share that would have continued to grow, but that was all ruined.”\u003c/p>\n\u003cp>In 2019, Trump awarded $16 billion in relief for affected farms. There was some rebound in the years between that trade war and the current one, but California never regained the dominance it once held.\u003c/p>\n\u003cp>Now, on top of a near halt on exports to China under \u003ca href=\"https://www.npr.org/2025/04/11/nx-s1-5361056/china-us-trade-war-tariffs-escalation\">its 125% levies\u003c/a>, trade wars with California’s other primary export partner in Canada, threaten the same lasting impact.\u003c/p>\n\u003cp>“California agriculture ships fruits and vegetables, wine up to Canada, and that’s already impacted,” Carter said. Canada is the state’s number one importer.\u003c/p>\n\u003cp>Canada imposed a 25% retaliatory tariff on U.S. wine. Instead of looking to California, which \u003ca href=\"https://www.cdfa.ca.gov/Statistics/PDFs/2022-2023_california_agricultural_exports.pdf\">sent 34% of its exported wine\u003c/a> to the country in 2022, Canada is relying on Europe.\u003c/p>\n\u003cp>Even if the trade war ebbs, “they may not come back to California,” Carter told KQED. “Trading in agriculture is a relationship that develops over time. And if one trading partner breaks that relationship, it doesn’t snap back overnight. It takes a long time to regain that trust.”\u003c/p>\n\u003ch2>Farmworkers ‘refusing to come out’\u003c/h2>\n\u003cp>The industry’s workforce is also under significant threat.\u003c/p>\n\u003cp>Immigrants made up at least 50% of the state’s farmworker population between 2010 and 2018, \u003ca href=\"https://www.ppic.org/publication/health-care-access-among-californias-farmworkers/\">according to data\u003c/a> from the Public Policy Institute of California.\u003c/p>\n\u003cp>Those farmworkers are increasingly anxious and fearful, according to Belinda Hernandez-Arriaga, the executive director of Ayudando Latinos A Soñar (ALAS), an advocacy nonprofit for farmworkers in Half Moon Bay. Even though Trump’s threat of mass deportations has not yet been widely carried out, the emotional and psychological fear it’s caused is already having effects.\u003c/p>\n\u003cfigure id=\"attachment_11973461\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11973461\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/01/240123-HMBShootingAnniversary-39-BL.jpg\" alt=\"A person with long hair stands in front of a group of people in a room painted bright orange.\" width=\"1920\" height=\"1280\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/01/240123-HMBShootingAnniversary-39-BL.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/01/240123-HMBShootingAnniversary-39-BL-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/01/240123-HMBShootingAnniversary-39-BL-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/01/240123-HMBShootingAnniversary-39-BL-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/01/240123-HMBShootingAnniversary-39-BL-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Dr. Belinda Hernandez-Arriaga speaks during a roundtable discussion at the ALAS Sueño Center in Half Moon Bay on Jan. 23, 2024. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“There’s a group of farmworkers … here on the North Coast and they have told our team that they’re refusing to come out beyond just their work duties,” Hernandez-Arriaga said. “They don’t want to leave the farm. They don’t want to come out for other things in the community because they don’t want to be at risk, and they’re scared.”\u003c/p>\n\u003cp>She said that in the days immediately after actions like the raids in Kern County, people have stayed home from work, worried that their farms would be targets for Immigration and Customs Enforcement officials, or that they could be stopped at a gas station on their way home.\u003c/p>\n\u003cp>While many immigrants were already fearful of ICE enforcement under the Biden administration, Hernandez-Arriaga said those she spoke to in Half Moon Bay didn’t feel like a target.\u003c/p>\n\u003cp>The current administration, she said, is “saying that they’re focusing on criminals, but that’s not what we’re seeing happening at all. In many ways, that’s what they’re using to market this increased deportation of immigrants.”\u003c/p>\n\u003ch2>Farmers still on Trump’s side\u003c/h2>\n\u003cp>Amid the threats both to agricultural workers and the industry’s economic stability, Padilla said he has been working with farmers and speaking with Republican colleagues about the impacts of Trump’s policies.\u003c/p>\n\u003cp>Blanket tariffs risk retaliation and could harm the farmers they try to protect, warned Shannon Douglass, president of the California Farm Bureau, which advocates for the state’s farmers and ranchers.\u003c/p>\n\u003cfigure id=\"attachment_127407\" class=\"wp-caption aligncenter\" style=\"max-width: 1636px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-127407 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2014/02/4669193811.jpg\" alt=\"\" width=\"1636\" height=\"961\">\u003cfigcaption class=\"wp-caption-text\">California’s agricultural industry could be devastated by dwindling exports due to retaliatory tariffs and the effect of immigration enforcement on farmworkers. \u003ccite>(Frederic J. Brown/AFP-Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“A more strategic approach is targeted enforcement, not blanket tariffs,” she said in a statement. “Strengthening and enforcing provisions of trade agreements like USMCA, expanding export markets and ensuring fair competition through diplomatic discussions would likely protect California farmers without triggering unnecessary retaliation.”\u003c/p>\n\u003cp>Still, Carter noted that Trump didn’t lose very much support from California farmers after his 2018–2019 trade war, and there hasn’t been a dramatic outpouring of opposition from them in recent months either.\u003c/p>\n\u003cp>“It is a mystery,” Carter said.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>He added that it could be because farmers believe they’ll benefit from the long-term effects of the tariff policy.\u003c/p>\n\u003cp>“President Trump and [trade advisor] Peter Navarro and [Secretary of Commerce Howard] Lutnick, I’ve seen them on CNN complaining about how U.S. agriculture’s ripped off in Canada, in Australia, in the European Union,” Carter said. “Actually, that’s just not correct.”\u003c/p>\n\u003cp>He said California exports 40% of its agricultural goods and that the U.S. has done well in recent decades because of lower trade barriers.\u003c/p>\n\u003cp>Other farmers are hoping that high prices will be worth it for less restricted water resources, he said. In January, Trump \u003ca href=\"https://www.kqed.org/news/12023248/trump-again-wades-into-california-water-use-fight-drawing-skepticism-from-experts\">announced a “presidential action”\u003c/a> that directed the Secretary of Commerce and the Secretary of the Interior to develop a plan that would route more water from the Sacramento-San Joaquin Delta to dry parts of the state.\u003c/p>\n\u003cp>But he also \u003ca href=\"https://www.npr.org/2025/02/07/nx-s1-5287016/farmers-are-worried-after-trump-released-billions-of-gallons-of-water-in-california\">flushed 2 billion gallons of water\u003c/a> from dams in the Sierra Nevada foothills in February, claiming that it would help give Los Angeles and California “\u003ca href=\"https://www.npr.org/2025/02/07/nx-s1-5287016/farmers-are-worried-after-trump-released-billions-of-gallons-of-water-in-california\">virtually unlimited water\u003c/a>.” The fires had already been fully contained at the time.\u003c/p>\n\u003cp>Carter isn’t sure whether farmers will start to rethink their support for Trump if tariffs begin to make a bigger dent in their revenue, or if their workforce is decimated — as it would be should he carry out his threat of mass deportations.\u003c/p>\n\u003cp>“[Trump] had a lot of support in the Central Valley, and even though they were harmed during the first trade war,” Carter told KQED. “It does make you wonder how much pain they’re willing to take.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>\u003cem>This story was originally published by \u003ca href=\"https://calmatters.org/\">CalMatters\u003c/a>. \u003ca href=\"https://calmatters.org/subscribe-to-calmatters/\">Sign up\u003c/a> for their newsletters.\u003c/em>\u003c/p>\n\u003cp>President Donald Trump’s on-again, off-again tariffs are putting many California businesses, jobs and the \u003ca href=\"https://calmatters.org/newsletter/trump-tariffs-california-budget/\">state budget\u003c/a> at risk. They’re affecting not only long-term relationships with trading partners, but an intricate web of ecosystems and supply chains.\u003c/p>\n\u003cp>The California business owners and groups grappling with the tariffs — wine shop owners, winery founders, farmers — say the precise effects on their industries are unclear so far. They hope there will be an upside.\u003c/p>\n\u003cp>But for those who have a broad view of trade, things look grim.\u003c/p>\n\u003cp>The Port of Los Angeles and the Port of Long Beach, the busiest ports in North America, both saw first-quarter increases in imports, but declines in exports, year over year.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Gene Seroka, executive director for the Port of Los Angeles, attributed the higher volume of cargo being moved to “front-loading as a hedge against tariffs” during a recent media briefing. But he said his port saw year-over-year declines in exports for the fourth month in a row, “raising concerns for our (agriculture) and manufacturing partners as counter-tariffs on exports begin to take effect.”\u003c/p>\n\u003cp>Seroka — who said companies have been telling him they are holding back on hiring and capital investments — predicted a slowdown in cargo movement beginning in May, and expects a 10% drop in volume from July until next year. His predictions are already beginning to show up in the port’s import volume.\u003c/p>\n\u003cp>Some of that may be due to a decline in Chinese imports. On April 9, Trump raised his tariff on China to 145%, although he later exempted certain electronics, such as laptops and smartphones. China responded on April 12 with 125% tariffs on U.S. products. Chinese goods represent 40% of the imports that pass through the Port of Los Angeles, Seroka said.\u003c/p>\n\u003cp>A decline in volume will affect port jobs, though he doesn’t anticipate mass layoffs, he said. More than 1.5 million jobs are tied to the two Southern California ports.\u003c/p>\n\u003cp>The effects of decreased trade will vary for different businesses in the state — even within the same industries.\u003c/p>\n\u003ch2>The California wine industry\u003c/h2>\n\u003cp>A wine merchant in Walnut Creek who sells mostly European wines — on which the president \u003ca href=\"https://edition.cnn.com/2025/03/13/business/alcohol-tariffs-eu-trump-trade-war/index.html\">has threatened 200% tariffs\u003c/a> — said he’s going to have to make adjustments, like carrying more California wines, or consider closing up shop.\u003c/p>\n\u003cp>“I’d have to think about whether it’s worthwhile staying in business,” said Igor Ivanov, owner of wine shop Vinous Reverie. He added that the tariff issues are just the latest of the wine industry’s woes, which include the fact that people just \u003ca href=\"https://www.nbcnews.com/data-graphics/data-shows-wine-decline-consumers-spending-less-drinking-less-rcna187628\">aren’t drinking as much alcohol\u003c/a> as they used to.\u003c/p>\n\u003cp>On the other hand, increased tariffs on European wine could help boost California wine.[aside postID=news_12036199 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250306-PORT-OF-OAKLAND-MD-01_qed-1020x680.jpg']Natalie Collins, president of the California Association of Winegrape Growers, said tariffs on competing wines could help local wine growers.\u003c/p>\n\u003cp>Bruce Lundquist, co-founder of Rack & Riddle, which he said is the largest custom producer of sparkling wine in the nation, agreed with Collins: “I wish Americans would look at wines grown in their backyard.”\u003c/p>\n\u003cp>Lundquist said so far Healdsburg-based Rack & Riddle is OK — the company is stocked up on supplies that he orders from different places, both in and out of the country. But he can’t say what his winery and retail clients might be going through. Lundquist worries about tariff uncertainty dragging on, say through next year. “There would have to be a reckoning if this thing were to go on,” he said. “It’s already hard enough to run a winery.”\u003c/p>\n\u003cp>What’s at stake as the U.S. wine industry grapples with tariffs: $86 billion in annual sales, U.S. Census Bureau data said. California exported $1.3 billion worth of wine in 2022, per the California Department of Food and Agriculture.\u003c/p>\n\u003cp>Even if the wine produced in this country stays here, tariffs mean winemakers face higher costs on everything from bottles — glass mostly imported from China — to labels and corks, to metal posts and wooden stakes for the vines. As for U.S. wine exports, 95% of those come from California, says Gino DiCaro, spokesperson for the Wine Institute.\u003c/p>\n\u003cp>And 35% of exports go to Canada, which now has a serious don’t-buy-American, \u003ca href=\"https://calmatters.org/economy/2025/04/california-tourism-canada/\">don’t-go-to-America campaign\u003c/a> in effect because of the president’s threats about tariffs and annexing Canada.\u003c/p>\n\u003cp>“(Canadians) are voting with their feet, and there’s a real sense of betrayal and a sense of shock,” said Rana Sarkar, consul general of Canada in San Francisco. “Economic crisis within Canada will no doubt ensue from this, but it will also be deeply painful in the United States.”\u003c/p>\n\u003cp>California recently became the first state to \u003ca href=\"https://calmatters.org/politics/2025/04/california-trump-tariffs-lawsuit/\">sue the Trump administration over tariffs\u003c/a>. Gov. Gavin Newsom said the tariffs’ trade and geopolitical effects are “outsized,” while Attorney General Rob Bonta said the president bypassed the power of Congress to tax and regulate commerce by declaring a national emergency. California’s lawsuit seeks to pause the tariffs immediately.[aside postID=forum_2010101909512 hero='https://cdn.kqed.org/wp-content/uploads/sites/43/2025/04/GettyImages-2208657779-1-1020x574.jpg']But in some cases, the damage is already done. The office of U.S. Rep. Mike Thompson, a Democrat whose district includes Napa’s Wine Country, shared anonymized anecdotes from winery owners and managers, who the congressman’s staff said are afraid to go on the record. Thompson’s constituents say their Canadian business partners have canceled hundreds of thousands of dollars worth of orders, and that potential sales to Mexico or the European Union are on hold. One medium-size winery in St. Helena told Thompson’s staff that since the tariffs Trump imposed during his first term, it has lost 90% of its business with China and is no longer seeking to sell there: “China has turned to other wine regions across the globe and we believe rebuilding this market will take over 20 years.”\u003c/p>\n\u003cp>In addition, “the uncertainty itself has had damage, even though we (may not) get the tariffs,” said Daniel Sumner, economics professor and director of the University of California Agricultural Issues Center at UC Davis.\u003c/p>\n\u003cp>California and other producers of agricultural products want to be able to tell customers they’re reliable suppliers, Sumner said. “But you can’t do that if prices can go up. That’s a real problem,” he said.\u003c/p>\n\u003cp>Sumner added: “A major concern for any industry is the increased likelihood of a global recession and slower growth in general.” Investment banks and economists \u003ca href=\"https://www.npr.org/2025/04/07/nx-s1-5354927/recession-trump-tariffs\">have said a recession is likely\u003c/a>. Citing Trump’s tariffs, the International Monetary Fund has \u003ca href=\"https://www.theguardian.com/business/2025/apr/22/imf-major-negative-shock-trump-tariffs-uk\">slashed its forecast\u003c/a> for U.S. and global economic growth this year.\u003c/p>\n\u003ch2>Farming: Almonds, dairy and other crops\u003c/h2>\n\u003cp>Ryan Talley is vice president of Talley Farms in Arroyo Grande, in San Luis Obispo County, which was started in the 1940s by his grandfather. Now his children are the fourth generation of his family to work for the farm, which grows a few dozen crops.\u003c/p>\n\u003cp>Talley said his medium-size farm is still able to sell spinach to Canada, but he’s concerned about being able to sell bell peppers to the country, because harvest season for those won’t come until August through November. He hopes the United States-Mexico-Canada Agreement will protect those sales — but Trump has threatened tariffs on Canada and Mexico a few times.\u003c/p>\n\u003cp>Talley Farms’ other crops — including cabbage, kale, lettuce and corn — are distributed domestically but are highly perishable. Talley said that means it’s tough to adjust operations to any tariffs because of changes to fuel, fertilizing or other supply costs.[aside postID=news_12034730 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/iPhone16Getty-1020x680.jpg']“We don’t have months to wait something out,” he said. “We have to continue our operations at the intensity that we currently farm.” He added that “we’re going to have to take those rising prices and deal with it the best we can.”\u003c/p>\n\u003cp>In addition, Talley worries that one possible effect of tariffs is a glut of domestically grown crops. “If the majority of U.S. farms weren’t able to export their product, everything would stay here, which would completely flood the market and send prices down,” he said. “It would be great for consumers (in terms of prices) but in the end it would hurt the American farmer.”\u003c/p>\n\u003cp>But Talley’s biggest concern is his farm’s workers, who could be affected by Trump’s stated intent of mass deportations: “I can withstand an increase in fuel prices and fertilizer prices and regulatory burden to an extent. But if you take away my labor overnight, it would be hard for us.”\u003c/p>\n\u003cp>It’s almost impossible to find a part of California agriculture unaffected by Trump’s tariffs.\u003c/p>\n\u003cp>Shawna Morris, executive vice president of trade policy at the National Milk Producers Federation, said she is concerned about California’s dairy exports to Mexico, including cheese. The other really big market for California dairy products is China, which has already “pulled the trigger” on retaliatory tariffs, Morris said. California’s dairy exports totaled $3.2 billion in 2022.\u003c/p>\n\u003cp>California’s biggest export, almonds, had $4.7 billion in foreign sales in 2022. Their longer shelf life is a plus, said almond farmer Jenny Holtermann, in Kern County. “We harvest once a year, then (our processor partners) sell throughout the year,” she said. “The tariffs won’t affect us instantly.”\u003c/p>\n\u003cp>Holtermann has experience from the tariffs the president imposed during his first term. She would not share specific numbers for her own farm — which has also been in her family for four generations — but acknowledged those tariffs hurt the almond industry, which is “just now starting to rebound.”\u003c/p>\n\u003cp>Almond growers saw their prices drop from $2.50 a pound to $1.40 a pound after Trump’s tariffs in 2018, according to \u003ca href=\"https://giannini.ucop.edu/publications/are-update/issues/2020/23/3/impact-of-the-us-china-trade-war-on-california-agr/\">research\u003c/a> from the University of California Giannini Foundation of Agricultural Economics.\u003c/p>\n\u003cp>Holtermann said farmers’ costs have only gone up, so her farm has adjusted by using less fertilizer, buying fewer tractors or letting trucks run a little longer before replacing them.\u003c/p>\n\u003cp>But she said she thinks the president’s tariffs are part of “a long-game approach … to get our country back to the economic powerhouse we’re supposed to be.”\u003c/p>\n\u003cp>Besides, Holtermann is counting on a couple of things. One is California almonds’ dominance: The state produces 80% of the world’s almonds, says the Almond Alliance.\u003c/p>\n\u003cp>The other thing she’s hoping for is another possible federal bailout, which \u003ca href=\"https://www.yahoo.com/news/bailout-farmers-caught-trump-trade-171113348.html\">reportedly\u003c/a> has been discussed by the Trump administration. During the Trump 1.0 trade war, the federal government provided farmers with “market facilitation funds” of $23 billion to try to offset the business they lost as a result of China’s retaliatory tariffs on the United States, the Government Accountability Office said in a 2021 report.\u003c/p>\n\u003cp>The U.S. Department of Agriculture has not responded to CalMatters’ questions.\u003c/p>\n\u003cp>Those funds helped her farm last time, Holtermann said, so she’s hoping for more of the same. “I do know he supports agriculture,” she said of the president. “He’s had a lot of meetings with agriculture organizations.”\u003c/p>\n\u003cp>Still, she expects to take a short-term hit from tariffs this time around, including losing business from certain countries. “I’m not naive,” Holtermann said. “I’m sure we will miss a portion of that market share.”\u003c/p>\n\u003cp>But Shannon Douglass, president of the California Farm Bureau, is concerned about getting global buyers to return once they switch to other sources. “We know the last round, almonds and pistachios saw a 20% drop in exports,” she said. “Once they have moved it can take a long time to get those markets back.”\u003c/p>\n\u003cp>\u003cem>This article was \u003ca href=\"https://calmatters.org/economy/2025/04/tariffs-california-agriculture-wine/\">originally published on CalMatters\u003c/a> and was republished under the \u003ca href=\"https://creativecommons.org/licenses/by-nc-nd/4.0/\">Creative Commons Attribution-NonCommercial-NoDerivatives\u003c/a> license.\u003c/em>\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cem>This story was originally published by \u003ca href=\"https://calmatters.org/\">CalMatters\u003c/a>. \u003ca href=\"https://calmatters.org/subscribe-to-calmatters/\">Sign up\u003c/a> for their newsletters.\u003c/em>\u003c/p>\n\u003cp>President Donald Trump’s on-again, off-again tariffs are putting many California businesses, jobs and the \u003ca href=\"https://calmatters.org/newsletter/trump-tariffs-california-budget/\">state budget\u003c/a> at risk. They’re affecting not only long-term relationships with trading partners, but an intricate web of ecosystems and supply chains.\u003c/p>\n\u003cp>The California business owners and groups grappling with the tariffs — wine shop owners, winery founders, farmers — say the precise effects on their industries are unclear so far. They hope there will be an upside.\u003c/p>\n\u003cp>But for those who have a broad view of trade, things look grim.\u003c/p>\n\u003cp>The Port of Los Angeles and the Port of Long Beach, the busiest ports in North America, both saw first-quarter increases in imports, but declines in exports, year over year.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Gene Seroka, executive director for the Port of Los Angeles, attributed the higher volume of cargo being moved to “front-loading as a hedge against tariffs” during a recent media briefing. But he said his port saw year-over-year declines in exports for the fourth month in a row, “raising concerns for our (agriculture) and manufacturing partners as counter-tariffs on exports begin to take effect.”\u003c/p>\n\u003cp>Seroka — who said companies have been telling him they are holding back on hiring and capital investments — predicted a slowdown in cargo movement beginning in May, and expects a 10% drop in volume from July until next year. His predictions are already beginning to show up in the port’s import volume.\u003c/p>\n\u003cp>Some of that may be due to a decline in Chinese imports. On April 9, Trump raised his tariff on China to 145%, although he later exempted certain electronics, such as laptops and smartphones. China responded on April 12 with 125% tariffs on U.S. products. Chinese goods represent 40% of the imports that pass through the Port of Los Angeles, Seroka said.\u003c/p>\n\u003cp>A decline in volume will affect port jobs, though he doesn’t anticipate mass layoffs, he said. More than 1.5 million jobs are tied to the two Southern California ports.\u003c/p>\n\u003cp>The effects of decreased trade will vary for different businesses in the state — even within the same industries.\u003c/p>\n\u003ch2>The California wine industry\u003c/h2>\n\u003cp>A wine merchant in Walnut Creek who sells mostly European wines — on which the president \u003ca href=\"https://edition.cnn.com/2025/03/13/business/alcohol-tariffs-eu-trump-trade-war/index.html\">has threatened 200% tariffs\u003c/a> — said he’s going to have to make adjustments, like carrying more California wines, or consider closing up shop.\u003c/p>\n\u003cp>“I’d have to think about whether it’s worthwhile staying in business,” said Igor Ivanov, owner of wine shop Vinous Reverie. He added that the tariff issues are just the latest of the wine industry’s woes, which include the fact that people just \u003ca href=\"https://www.nbcnews.com/data-graphics/data-shows-wine-decline-consumers-spending-less-drinking-less-rcna187628\">aren’t drinking as much alcohol\u003c/a> as they used to.\u003c/p>\n\u003cp>On the other hand, increased tariffs on European wine could help boost California wine.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Natalie Collins, president of the California Association of Winegrape Growers, said tariffs on competing wines could help local wine growers.\u003c/p>\n\u003cp>Bruce Lundquist, co-founder of Rack & Riddle, which he said is the largest custom producer of sparkling wine in the nation, agreed with Collins: “I wish Americans would look at wines grown in their backyard.”\u003c/p>\n\u003cp>Lundquist said so far Healdsburg-based Rack & Riddle is OK — the company is stocked up on supplies that he orders from different places, both in and out of the country. But he can’t say what his winery and retail clients might be going through. Lundquist worries about tariff uncertainty dragging on, say through next year. “There would have to be a reckoning if this thing were to go on,” he said. “It’s already hard enough to run a winery.”\u003c/p>\n\u003cp>What’s at stake as the U.S. wine industry grapples with tariffs: $86 billion in annual sales, U.S. Census Bureau data said. California exported $1.3 billion worth of wine in 2022, per the California Department of Food and Agriculture.\u003c/p>\n\u003cp>Even if the wine produced in this country stays here, tariffs mean winemakers face higher costs on everything from bottles — glass mostly imported from China — to labels and corks, to metal posts and wooden stakes for the vines. As for U.S. wine exports, 95% of those come from California, says Gino DiCaro, spokesperson for the Wine Institute.\u003c/p>\n\u003cp>And 35% of exports go to Canada, which now has a serious don’t-buy-American, \u003ca href=\"https://calmatters.org/economy/2025/04/california-tourism-canada/\">don’t-go-to-America campaign\u003c/a> in effect because of the president’s threats about tariffs and annexing Canada.\u003c/p>\n\u003cp>“(Canadians) are voting with their feet, and there’s a real sense of betrayal and a sense of shock,” said Rana Sarkar, consul general of Canada in San Francisco. “Economic crisis within Canada will no doubt ensue from this, but it will also be deeply painful in the United States.”\u003c/p>\n\u003cp>California recently became the first state to \u003ca href=\"https://calmatters.org/politics/2025/04/california-trump-tariffs-lawsuit/\">sue the Trump administration over tariffs\u003c/a>. Gov. Gavin Newsom said the tariffs’ trade and geopolitical effects are “outsized,” while Attorney General Rob Bonta said the president bypassed the power of Congress to tax and regulate commerce by declaring a national emergency. California’s lawsuit seeks to pause the tariffs immediately.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>But in some cases, the damage is already done. The office of U.S. Rep. Mike Thompson, a Democrat whose district includes Napa’s Wine Country, shared anonymized anecdotes from winery owners and managers, who the congressman’s staff said are afraid to go on the record. Thompson’s constituents say their Canadian business partners have canceled hundreds of thousands of dollars worth of orders, and that potential sales to Mexico or the European Union are on hold. One medium-size winery in St. Helena told Thompson’s staff that since the tariffs Trump imposed during his first term, it has lost 90% of its business with China and is no longer seeking to sell there: “China has turned to other wine regions across the globe and we believe rebuilding this market will take over 20 years.”\u003c/p>\n\u003cp>In addition, “the uncertainty itself has had damage, even though we (may not) get the tariffs,” said Daniel Sumner, economics professor and director of the University of California Agricultural Issues Center at UC Davis.\u003c/p>\n\u003cp>California and other producers of agricultural products want to be able to tell customers they’re reliable suppliers, Sumner said. “But you can’t do that if prices can go up. That’s a real problem,” he said.\u003c/p>\n\u003cp>Sumner added: “A major concern for any industry is the increased likelihood of a global recession and slower growth in general.” Investment banks and economists \u003ca href=\"https://www.npr.org/2025/04/07/nx-s1-5354927/recession-trump-tariffs\">have said a recession is likely\u003c/a>. Citing Trump’s tariffs, the International Monetary Fund has \u003ca href=\"https://www.theguardian.com/business/2025/apr/22/imf-major-negative-shock-trump-tariffs-uk\">slashed its forecast\u003c/a> for U.S. and global economic growth this year.\u003c/p>\n\u003ch2>Farming: Almonds, dairy and other crops\u003c/h2>\n\u003cp>Ryan Talley is vice president of Talley Farms in Arroyo Grande, in San Luis Obispo County, which was started in the 1940s by his grandfather. Now his children are the fourth generation of his family to work for the farm, which grows a few dozen crops.\u003c/p>\n\u003cp>Talley said his medium-size farm is still able to sell spinach to Canada, but he’s concerned about being able to sell bell peppers to the country, because harvest season for those won’t come until August through November. He hopes the United States-Mexico-Canada Agreement will protect those sales — but Trump has threatened tariffs on Canada and Mexico a few times.\u003c/p>\n\u003cp>Talley Farms’ other crops — including cabbage, kale, lettuce and corn — are distributed domestically but are highly perishable. Talley said that means it’s tough to adjust operations to any tariffs because of changes to fuel, fertilizing or other supply costs.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“We don’t have months to wait something out,” he said. “We have to continue our operations at the intensity that we currently farm.” He added that “we’re going to have to take those rising prices and deal with it the best we can.”\u003c/p>\n\u003cp>In addition, Talley worries that one possible effect of tariffs is a glut of domestically grown crops. “If the majority of U.S. farms weren’t able to export their product, everything would stay here, which would completely flood the market and send prices down,” he said. “It would be great for consumers (in terms of prices) but in the end it would hurt the American farmer.”\u003c/p>\n\u003cp>But Talley’s biggest concern is his farm’s workers, who could be affected by Trump’s stated intent of mass deportations: “I can withstand an increase in fuel prices and fertilizer prices and regulatory burden to an extent. But if you take away my labor overnight, it would be hard for us.”\u003c/p>\n\u003cp>It’s almost impossible to find a part of California agriculture unaffected by Trump’s tariffs.\u003c/p>\n\u003cp>Shawna Morris, executive vice president of trade policy at the National Milk Producers Federation, said she is concerned about California’s dairy exports to Mexico, including cheese. The other really big market for California dairy products is China, which has already “pulled the trigger” on retaliatory tariffs, Morris said. California’s dairy exports totaled $3.2 billion in 2022.\u003c/p>\n\u003cp>California’s biggest export, almonds, had $4.7 billion in foreign sales in 2022. Their longer shelf life is a plus, said almond farmer Jenny Holtermann, in Kern County. “We harvest once a year, then (our processor partners) sell throughout the year,” she said. “The tariffs won’t affect us instantly.”\u003c/p>\n\u003cp>Holtermann has experience from the tariffs the president imposed during his first term. She would not share specific numbers for her own farm — which has also been in her family for four generations — but acknowledged those tariffs hurt the almond industry, which is “just now starting to rebound.”\u003c/p>\n\u003cp>Almond growers saw their prices drop from $2.50 a pound to $1.40 a pound after Trump’s tariffs in 2018, according to \u003ca href=\"https://giannini.ucop.edu/publications/are-update/issues/2020/23/3/impact-of-the-us-china-trade-war-on-california-agr/\">research\u003c/a> from the University of California Giannini Foundation of Agricultural Economics.\u003c/p>\n\u003cp>Holtermann said farmers’ costs have only gone up, so her farm has adjusted by using less fertilizer, buying fewer tractors or letting trucks run a little longer before replacing them.\u003c/p>\n\u003cp>But she said she thinks the president’s tariffs are part of “a long-game approach … to get our country back to the economic powerhouse we’re supposed to be.”\u003c/p>\n\u003cp>Besides, Holtermann is counting on a couple of things. One is California almonds’ dominance: The state produces 80% of the world’s almonds, says the Almond Alliance.\u003c/p>\n\u003cp>The other thing she’s hoping for is another possible federal bailout, which \u003ca href=\"https://www.yahoo.com/news/bailout-farmers-caught-trump-trade-171113348.html\">reportedly\u003c/a> has been discussed by the Trump administration. During the Trump 1.0 trade war, the federal government provided farmers with “market facilitation funds” of $23 billion to try to offset the business they lost as a result of China’s retaliatory tariffs on the United States, the Government Accountability Office said in a 2021 report.\u003c/p>\n\u003cp>The U.S. Department of Agriculture has not responded to CalMatters’ questions.\u003c/p>\n\u003cp>Those funds helped her farm last time, Holtermann said, so she’s hoping for more of the same. “I do know he supports agriculture,” she said of the president. “He’s had a lot of meetings with agriculture organizations.”\u003c/p>\n\u003cp>Still, she expects to take a short-term hit from tariffs this time around, including losing business from certain countries. “I’m not naive,” Holtermann said. “I’m sure we will miss a portion of that market share.”\u003c/p>\n\u003cp>But Shannon Douglass, president of the California Farm Bureau, is concerned about getting global buyers to return once they switch to other sources. “We know the last round, almonds and pistachios saw a 20% drop in exports,” she said. “Once they have moved it can take a long time to get those markets back.”\u003c/p>\n\u003cp>\u003cem>This article was \u003ca href=\"https://calmatters.org/economy/2025/04/tariffs-california-agriculture-wine/\">originally published on CalMatters\u003c/a> and was republished under the \u003ca href=\"https://creativecommons.org/licenses/by-nc-nd/4.0/\">Creative Commons Attribution-NonCommercial-NoDerivatives\u003c/a> license.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>Shipping demand is falling at the \u003ca href=\"https://www.kqed.org/news/tag/port-of-oakland\">Port of Oakland\u003c/a> because of the \u003ca href=\"https://www.kqed.org/news/12036199/trumps-tariffs-could-wreck-californias-economy-the-state-is-suing\">Trump administration’s tariffs\u003c/a>, according to local officials.\u003c/p>\n\u003cp>At a roundtable discussion on Thursday, labor leaders, shipping officials and local business representatives warned that a trade war could deal a significant blow to the port.\u003c/p>\n\u003cp>Port officials said container cargo could fall 10% due to U.S. tariffs on foreign goods and the retaliatory tariffs other countries are imposing on American products, but they noted that is a conservative estimate.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“This is a crisis,” said Rep. \u003ca href=\"https://www.kqed.org/news/tag/lateefah-simon\">Lateefah Simon\u003c/a>, who represents part of the East Bay, including Oakland. “We want a resolution. Tariffs are not always bad, but a tariff war is a disaster for the United States economy and for the global economy.”\u003c/p>\n\u003cp>Port Executive Director Kristi McKenney, who led the roundtable with Simon, said she is particularly concerned about blank sailings, when ships cancel particular port stops or even entire voyages, often because of lower demand.\u003c/p>\n\u003cp>Those canceled incoming voyages also hinder exporting efforts because incoming shipping containers are often emptied to make room for outgoing goods, McKenney said. That could have a significant effect on American produce, dairy and other goods that flow out of Oakland, which is the country’s largest refrigerated port, she said.\u003c/p>\n\u003cp>[aside postID=news_12035636 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/GettyImages-2209401664-1020x718.jpg']\u003c/p>\n\u003cp>Mike Jacob, president of the Pacific Merchant Shipping Association, an organization that represents marine terminal owners and operators along the West Coast, said bookings fell dramatically after President Trump first \u003ca href=\"https://www.kqed.org/news/12034289/trump-launches-liberation-day-tariffs-saying-global-trade-has-plundered-us-economy\">announced sweeping tariffs\u003c/a> on nearly all U.S. trading partners earlier this month, and he’s already seeing canceled voyages from Asia as a result.\u003c/p>\n\u003cp>“It’s almost the exact same thing we saw at the beginning of the pandemic. We had a significant reduction in total throughput,” Jacob said. “We end up having fewer ships that are coming through, we have fewer longshoremen that are working, fewer truckers that are working, fewer warehousemen that are working.”\u003c/p>\n\u003cp>Goods imported from China, a major source of trading for the Oakland port, are now facing a 145% tariff, but the import tax policy has been surrounded by uncertainty. Just days after initially announcing his so-called reciprocal tariffs on dozens of countries, Trump declared a 90-day pause for most countries, with China excluded.\u003c/p>\n\u003cp>Jacob said the pause will likely lead to a short spike in trade, with businesses hoping to sell or buy large quantities of international goods before the tariffs are reimposed, followed by a drop-off once the pause ends.\u003c/p>\n\u003cfigure id=\"attachment_12036220\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12036220\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250306-PORT-OF-OAKLAND-MD-04_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250306-PORT-OF-OAKLAND-MD-04_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250306-PORT-OF-OAKLAND-MD-04_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250306-PORT-OF-OAKLAND-MD-04_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250306-PORT-OF-OAKLAND-MD-04_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250306-PORT-OF-OAKLAND-MD-04_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250306-PORT-OF-OAKLAND-MD-04_qed-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">The Port of Oakland on March 6, 2025. \u003ccite>(Martin do Nascimento/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>And while Trump has said he’s negotiating with China over the tariffs, the Chinese government and U.S. Treasury Secretary Scott Bessent said those talks have not yet started, \u003ca href=\"https://apnews.com/article/trump-tariffs-time-china-switzerland-660aa519e9059de7d81368ec4eef4b38\">the \u003cem>Associated Press\u003c/em> reported\u003c/a> Friday.\u003c/p>\n\u003cp>The far-reaching nature of the tariffs — and the confusion surrounding them — is vastly different from the import taxes Trump imposed during his first term, according to Jacob, who described the earlier tariffs as being levied on specific commodities in specific countries.\u003c/p>\n\u003cp>“That’s not what’s happening now, right? We had these sweeping, across-the-board tariffs that raised a lot of eyebrows, not just about the rates, which were exorbitant, but also about the method and the manner in which they happen,” Jacob said. “No one knows what the ultimate policy goal of those things were.”\u003c/p>\n\u003cp>In Oakland, Simon warned that “there’s a real potentiality of workers losing their jobs.”[aside postID=forum_2010101909222 hero='https://cdn.kqed.org/wp-content/uploads/sites/43/2025/03/Alexis-Madrigal-1020x574.jpg']“Listen, if there were no tariffs, Oakland would be in an emergency,” she said. “Now, we’re in ICU … we have to convince businesses to stay here.”\u003c/p>\n\u003cp>Stephanie Tran, president of the Oakland Chinatown Chamber of Commerce, expressed concern for the \u003ca href=\"https://www.kqed.org/news/12034827/bay-area-business-already-tough-trumps-tariffs-preparing-pain\">effect on small, mom-and-pop businesses, which \u003c/a>will likely have to absorb the additional costs, raise prices or pull certain items from shelves.\u003c/p>\n\u003cp>“It’s very important at this time that the community continues to support small businesses like all the restaurants and grocery stores in Oakland Chinatown,” Tran said.\u003c/p>\n\u003cp>Simon called the president’s tariffs a “no-win situation” and criticized his claim that tariffs will encourage businesses to move manufacturing operations stateside.\u003c/p>\n\u003cp>“We all agree, we want manufacturing jobs here in the United States. Do we have infrastructure to create that? Was there an articulated plan to build infrastructure in the United States to bring back manufacturing jobs? Absolutely not,” Simon said.\u003c/p>\n\u003cp>Other attendees at the roundtable discussion echoed that sentiment.\u003c/p>\n\u003cp>“If tariffs are used in a wise way, in a way that’s tied together with the development of local manufacturing, it can be a good thing,” said Andreas Cluver, vice president of the Oakland Board of Port Commissioners. “But these kind of willy-nilly tariffs that are put in place for political reasons, for patronage reasons, are having a devastating impact on working people.”\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Shipping demand is falling at the \u003ca href=\"https://www.kqed.org/news/tag/port-of-oakland\">Port of Oakland\u003c/a> because of the \u003ca href=\"https://www.kqed.org/news/12036199/trumps-tariffs-could-wreck-californias-economy-the-state-is-suing\">Trump administration’s tariffs\u003c/a>, according to local officials.\u003c/p>\n\u003cp>At a roundtable discussion on Thursday, labor leaders, shipping officials and local business representatives warned that a trade war could deal a significant blow to the port.\u003c/p>\n\u003cp>Port officials said container cargo could fall 10% due to U.S. tariffs on foreign goods and the retaliatory tariffs other countries are imposing on American products, but they noted that is a conservative estimate.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“This is a crisis,” said Rep. \u003ca href=\"https://www.kqed.org/news/tag/lateefah-simon\">Lateefah Simon\u003c/a>, who represents part of the East Bay, including Oakland. “We want a resolution. Tariffs are not always bad, but a tariff war is a disaster for the United States economy and for the global economy.”\u003c/p>\n\u003cp>Port Executive Director Kristi McKenney, who led the roundtable with Simon, said she is particularly concerned about blank sailings, when ships cancel particular port stops or even entire voyages, often because of lower demand.\u003c/p>\n\u003cp>Those canceled incoming voyages also hinder exporting efforts because incoming shipping containers are often emptied to make room for outgoing goods, McKenney said. That could have a significant effect on American produce, dairy and other goods that flow out of Oakland, which is the country’s largest refrigerated port, she said.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Mike Jacob, president of the Pacific Merchant Shipping Association, an organization that represents marine terminal owners and operators along the West Coast, said bookings fell dramatically after President Trump first \u003ca href=\"https://www.kqed.org/news/12034289/trump-launches-liberation-day-tariffs-saying-global-trade-has-plundered-us-economy\">announced sweeping tariffs\u003c/a> on nearly all U.S. trading partners earlier this month, and he’s already seeing canceled voyages from Asia as a result.\u003c/p>\n\u003cp>“It’s almost the exact same thing we saw at the beginning of the pandemic. We had a significant reduction in total throughput,” Jacob said. “We end up having fewer ships that are coming through, we have fewer longshoremen that are working, fewer truckers that are working, fewer warehousemen that are working.”\u003c/p>\n\u003cp>Goods imported from China, a major source of trading for the Oakland port, are now facing a 145% tariff, but the import tax policy has been surrounded by uncertainty. Just days after initially announcing his so-called reciprocal tariffs on dozens of countries, Trump declared a 90-day pause for most countries, with China excluded.\u003c/p>\n\u003cp>Jacob said the pause will likely lead to a short spike in trade, with businesses hoping to sell or buy large quantities of international goods before the tariffs are reimposed, followed by a drop-off once the pause ends.\u003c/p>\n\u003cfigure id=\"attachment_12036220\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12036220\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250306-PORT-OF-OAKLAND-MD-04_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250306-PORT-OF-OAKLAND-MD-04_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250306-PORT-OF-OAKLAND-MD-04_qed-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250306-PORT-OF-OAKLAND-MD-04_qed-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250306-PORT-OF-OAKLAND-MD-04_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250306-PORT-OF-OAKLAND-MD-04_qed-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250306-PORT-OF-OAKLAND-MD-04_qed-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">The Port of Oakland on March 6, 2025. \u003ccite>(Martin do Nascimento/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>And while Trump has said he’s negotiating with China over the tariffs, the Chinese government and U.S. Treasury Secretary Scott Bessent said those talks have not yet started, \u003ca href=\"https://apnews.com/article/trump-tariffs-time-china-switzerland-660aa519e9059de7d81368ec4eef4b38\">the \u003cem>Associated Press\u003c/em> reported\u003c/a> Friday.\u003c/p>\n\u003cp>The far-reaching nature of the tariffs — and the confusion surrounding them — is vastly different from the import taxes Trump imposed during his first term, according to Jacob, who described the earlier tariffs as being levied on specific commodities in specific countries.\u003c/p>\n\u003cp>“That’s not what’s happening now, right? We had these sweeping, across-the-board tariffs that raised a lot of eyebrows, not just about the rates, which were exorbitant, but also about the method and the manner in which they happen,” Jacob said. “No one knows what the ultimate policy goal of those things were.”\u003c/p>\n\u003cp>In Oakland, Simon warned that “there’s a real potentiality of workers losing their jobs.”\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“Listen, if there were no tariffs, Oakland would be in an emergency,” she said. “Now, we’re in ICU … we have to convince businesses to stay here.”\u003c/p>\n\u003cp>Stephanie Tran, president of the Oakland Chinatown Chamber of Commerce, expressed concern for the \u003ca href=\"https://www.kqed.org/news/12034827/bay-area-business-already-tough-trumps-tariffs-preparing-pain\">effect on small, mom-and-pop businesses, which \u003c/a>will likely have to absorb the additional costs, raise prices or pull certain items from shelves.\u003c/p>\n\u003cp>“It’s very important at this time that the community continues to support small businesses like all the restaurants and grocery stores in Oakland Chinatown,” Tran said.\u003c/p>\n\u003cp>Simon called the president’s tariffs a “no-win situation” and criticized his claim that tariffs will encourage businesses to move manufacturing operations stateside.\u003c/p>\n\u003cp>“We all agree, we want manufacturing jobs here in the United States. Do we have infrastructure to create that? Was there an articulated plan to build infrastructure in the United States to bring back manufacturing jobs? Absolutely not,” Simon said.\u003c/p>\n\u003cp>Other attendees at the roundtable discussion echoed that sentiment.\u003c/p>\n\u003cp>“If tariffs are used in a wise way, in a way that’s tied together with the development of local manufacturing, it can be a good thing,” said Andreas Cluver, vice president of the Oakland Board of Port Commissioners. “But these kind of willy-nilly tariffs that are put in place for political reasons, for patronage reasons, are having a devastating impact on working people.”\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"content": "\u003cp>For Bay Area bike shops, the recent drama of the Trump administration’s \u003ca href=\"https://www.kqed.org/news/12036199/trumps-tariffs-could-wreck-californias-economy-the-state-is-suing\">on-again, off-again tariffs\u003c/a> has been nothing short of chaos.\u003c/p>\n\u003cp>These small businesses typically see an uptick in sales during spring, when the weather warms and people get outside, but, like many American businesses, they now face fears about a lack of supply, unpredictable prices and a \u003ca href=\"https://www.kqed.org/news/12034827/bay-area-business-already-tough-trumps-tariffs-preparing-pain\">broader economic downturn\u003c/a>.\u003c/p>\n\u003cp>“It’s been a whirlwind,” said Brett Thurber, co-owner of The New Wheel Electric Bikes, which operates three shops in Larkspur, Oakland and San Francisco.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>On April 2, the Trump administration announced a 10% minimum tariff on \u003ca href=\"https://www.kqed.org/news/12034730/trump-tariffs-shake-world-economy-rattling-silicon-valley\">goods imported from all countries\u003c/a> and sweeping “reciprocal tariffs” against some of the United States’ biggest trading partners, such as China and the European Union. This change basically shut down The New Wheel’s supply chain, Thurber said.\u003c/p>\n\u003cp>“Most of our suppliers stopped shipments to the United States,” said Thurber, whose company sells one bicycle that is made in China and imports most from the EU and Vietnam. “ The lack of product was the biggest concern.”\u003c/p>\n\u003cfigure id=\"attachment_12036052\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12036052\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-1-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-1-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-1-KQED-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-1-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-1-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-1-KQED-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-1-KQED-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Brett Thurber, owner of The New Wheel, poses for a photo in the bike shop on April 15, 2025. \u003ccite>(Gina Castro/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Then, a few days later, the Trump administration announced a \u003ca href=\"https://www.kqed.org/news/12035188/trump-says-he-will-pause-tariffs-for-90-days-but-not-for-china\">90-day pause\u003c/a> on reciprocal tariffs on countries, except for China, but kept the 10% baseline tariff on all imports in place.\u003c/p>\n\u003cp>For now, The New Wheel’s suppliers have resumed shipments, Thurber said.\u003c/p>\n\u003cp>“ The confusion was beyond belief,” he added.\u003c/p>\n\u003cp>The current tariff on \u003ca href=\"https://www.kqed.org/forum/2010101909512/how-tariffs-and-a-trade-war-with-china-could-affect-ca-farmers\">imports from China\u003c/a> is particularly worrisome for bike shops, as more than half of all bicycles imported to the U.S. come from China.[aside postID=news_12036516 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/240823-ValenciaTelegraphBikeLanes-33-BL_qed-1020x680.jpg']If the trade war persists, it could pose a serious threat to the viability of many neighborhood bike shops, according to Matt Moore, the policy counsel for People for Bikes, the trade association for the U.S. bicycle industry.\u003c/p>\n\u003cp>Moore said that 60% to 65% of all bicycles imported to the U.S. are made in China, and those bicycles are subject to a tariff as high as 181% because of a blanket 145% tariff on goods from China, plus additional pre-existing tariffs on bicycles.\u003c/p>\n\u003cp>With tariffs that high, many small to midsize shops simply won’t have the money to purchase their inventory, Moore said.\u003c/p>\n\u003cp>“I’m not sure what those companies are going to do,” he added. “They’re not going to have inventory to sell. They won’t be making any money, and that’s not good for business.”\u003c/p>\n\u003cp>For now, The New Wheel can mostly rely on sales of bikes that are already in the country, Thurber said, but once that supply is used up, the company will need to import bikes — and possibly pay more.\u003c/p>\n\u003cp>“Once that inventory is gone, then new prices might come into play,” Thurber said.\u003c/p>\n\u003cfigure id=\"attachment_12036057\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12036057\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-16-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-16-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-16-KQED-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-16-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-16-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-16-KQED-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-16-KQED-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">An individual walks past The New Wheel in San Francisco on April 15, 2025. \u003ccite>(Gina Castro/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Still, the tariffs have led shoppers to try to \u003ca href=\"https://www.kqed.org/news/12035438/higher-prices-may-be-slow-to-come-down-even-if-tariffs-go-away-economists-say\">snag pre-tariff prices.\u003c/a> Thurber said business the first weekend after “Liberation Day,” when Trump announced the sweeping reciprocal tariffs, was 175% higher than the same weekend the year before — likely because prices for many of the shops’ bikes haven’t gone up yet.\u003c/p>\n\u003cp>Kalvin Corbett, a San Francisco resident who works at Marin General Hospital, had been on the fence about buying a new e-bike. He wants to commute to work by bike, but news of rising tariffs — and the potential for higher prices — moved up his decision to start shopping.\u003c/p>\n\u003cp>On a recent Thursday, he came to The New Wheel’s shop in Bernal Heights to test-ride e-bikes after the company sent out an email encouraging people to come in.\u003c/p>\n\u003cp>“ They sent an email that was like, ‘Hey, you know, [prices] are probably going to go up, so if you’re going to be thinking about getting one, you should get on board right now,” Corbett said.\u003c/p>\n\u003cfigure id=\"attachment_12036056\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12036056\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-15-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1329\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-15-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-15-KQED-800x532.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-15-KQED-1020x678.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-15-KQED-160x106.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-15-KQED-1536x1021.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-15-KQED-1920x1276.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A cyclist rides on Cortland Avenue in San Francisco on April 15, 2025. \u003ccite>(Gina Castro/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>He was looking at bikes priced between $5,000 and $10,000.\u003c/p>\n\u003cp>“ So if it goes up 10%, that’s a huge chunk of money,” Corbett said.\u003c/p>\n\u003cp>One of the stated reasons for Trump’s trade war is to return manufacturing to the U.S. — a move that the national bike industry has also called for.\u003c/p>\n\u003cp>Last year, then-Rep. Earl Blumenauer (D-Oregon) introduced the \u003ca href=\"https://www.congress.gov/bill/118th-congress/house-bill/8625/text\">Domestic Bicycle Production Act\u003c/a>, which would have created an initiative “to make loans to support domestic investment in the manufacturing of bicycles and electric bicycles.”\u003c/p>\n\u003cp>Moore said the bill “didn’t quite make it to the finish line” last year, but his group, People for Bikes, is looking to support the reintroduction of the bill this year.\u003c/p>\n\u003cp>“ We can see the handwriting on the wall,” Moore said. “That’s the direction the administration wants to go, and our industry is generally supportive of that.”\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>On April 2, the Trump administration announced a 10% minimum tariff on \u003ca href=\"https://www.kqed.org/news/12034730/trump-tariffs-shake-world-economy-rattling-silicon-valley\">goods imported from all countries\u003c/a> and sweeping “reciprocal tariffs” against some of the United States’ biggest trading partners, such as China and the European Union. This change basically shut down The New Wheel’s supply chain, Thurber said.\u003c/p>\n\u003cp>“Most of our suppliers stopped shipments to the United States,” said Thurber, whose company sells one bicycle that is made in China and imports most from the EU and Vietnam. “ The lack of product was the biggest concern.”\u003c/p>\n\u003cfigure id=\"attachment_12036052\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12036052\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-1-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-1-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-1-KQED-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-1-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-1-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-1-KQED-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-1-KQED-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Brett Thurber, owner of The New Wheel, poses for a photo in the bike shop on April 15, 2025. \u003ccite>(Gina Castro/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Then, a few days later, the Trump administration announced a \u003ca href=\"https://www.kqed.org/news/12035188/trump-says-he-will-pause-tariffs-for-90-days-but-not-for-china\">90-day pause\u003c/a> on reciprocal tariffs on countries, except for China, but kept the 10% baseline tariff on all imports in place.\u003c/p>\n\u003cp>For now, The New Wheel’s suppliers have resumed shipments, Thurber said.\u003c/p>\n\u003cp>“ The confusion was beyond belief,” he added.\u003c/p>\n\u003cp>The current tariff on \u003ca href=\"https://www.kqed.org/forum/2010101909512/how-tariffs-and-a-trade-war-with-china-could-affect-ca-farmers\">imports from China\u003c/a> is particularly worrisome for bike shops, as more than half of all bicycles imported to the U.S. come from China.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>If the trade war persists, it could pose a serious threat to the viability of many neighborhood bike shops, according to Matt Moore, the policy counsel for People for Bikes, the trade association for the U.S. bicycle industry.\u003c/p>\n\u003cp>Moore said that 60% to 65% of all bicycles imported to the U.S. are made in China, and those bicycles are subject to a tariff as high as 181% because of a blanket 145% tariff on goods from China, plus additional pre-existing tariffs on bicycles.\u003c/p>\n\u003cp>With tariffs that high, many small to midsize shops simply won’t have the money to purchase their inventory, Moore said.\u003c/p>\n\u003cp>“I’m not sure what those companies are going to do,” he added. “They’re not going to have inventory to sell. They won’t be making any money, and that’s not good for business.”\u003c/p>\n\u003cp>For now, The New Wheel can mostly rely on sales of bikes that are already in the country, Thurber said, but once that supply is used up, the company will need to import bikes — and possibly pay more.\u003c/p>\n\u003cp>“Once that inventory is gone, then new prices might come into play,” Thurber said.\u003c/p>\n\u003cfigure id=\"attachment_12036057\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12036057\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-16-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-16-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-16-KQED-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-16-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-16-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-16-KQED-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-16-KQED-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">An individual walks past The New Wheel in San Francisco on April 15, 2025. \u003ccite>(Gina Castro/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Still, the tariffs have led shoppers to try to \u003ca href=\"https://www.kqed.org/news/12035438/higher-prices-may-be-slow-to-come-down-even-if-tariffs-go-away-economists-say\">snag pre-tariff prices.\u003c/a> Thurber said business the first weekend after “Liberation Day,” when Trump announced the sweeping reciprocal tariffs, was 175% higher than the same weekend the year before — likely because prices for many of the shops’ bikes haven’t gone up yet.\u003c/p>\n\u003cp>Kalvin Corbett, a San Francisco resident who works at Marin General Hospital, had been on the fence about buying a new e-bike. He wants to commute to work by bike, but news of rising tariffs — and the potential for higher prices — moved up his decision to start shopping.\u003c/p>\n\u003cp>On a recent Thursday, he came to The New Wheel’s shop in Bernal Heights to test-ride e-bikes after the company sent out an email encouraging people to come in.\u003c/p>\n\u003cp>“ They sent an email that was like, ‘Hey, you know, [prices] are probably going to go up, so if you’re going to be thinking about getting one, you should get on board right now,” Corbett said.\u003c/p>\n\u003cfigure id=\"attachment_12036056\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12036056\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-15-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1329\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-15-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-15-KQED-800x532.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-15-KQED-1020x678.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-15-KQED-160x106.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-15-KQED-1536x1021.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/20250415_BIKETARIFF_GC-15-KQED-1920x1276.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A cyclist rides on Cortland Avenue in San Francisco on April 15, 2025. \u003ccite>(Gina Castro/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>He was looking at bikes priced between $5,000 and $10,000.\u003c/p>\n\u003cp>“ So if it goes up 10%, that’s a huge chunk of money,” Corbett said.\u003c/p>\n\u003cp>One of the stated reasons for Trump’s trade war is to return manufacturing to the U.S. — a move that the national bike industry has also called for.\u003c/p>\n\u003cp>Last year, then-Rep. Earl Blumenauer (D-Oregon) introduced the \u003ca href=\"https://www.congress.gov/bill/118th-congress/house-bill/8625/text\">Domestic Bicycle Production Act\u003c/a>, which would have created an initiative “to make loans to support domestic investment in the manufacturing of bicycles and electric bicycles.”\u003c/p>\n\u003cp>Moore said the bill “didn’t quite make it to the finish line” last year, but his group, People for Bikes, is looking to support the reintroduction of the bill this year.\u003c/p>\n\u003cp>“ We can see the handwriting on the wall,” Moore said. “That’s the direction the administration wants to go, and our industry is generally supportive of that.”\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"title": "Bay Area Business Is Already Tough. After Trump’s Tariffs, Many Are Preparing for Pain",
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"content": "\u003cp>While President Donald Trump has defended \u003ca href=\"https://www.kqed.org/forum/2010101909473/the-fallout-of-trumps-expansive-tariffs\">his tariffs\u003c/a> as “medicine” for American industry during what he calls an economic emergency, many Bay Area small businesses that rely on imported goods are bracing for major upheaval.\u003c/p>\n\u003cp>Trump’s aggressive trade policy unveiled last week sent shockwaves through the global economy and U.S. markets. In addition to a 10% baseline tax on all imported goods, the U.S. will impose “reciprocal” tariffs affecting dozens of trade partners.\u003c/p>\n\u003cp>Those levies will increase costs for business owners — increases that many expect will be passed on to consumers.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Taylor Peliska, an employee at King Kog Bicycle Shop in downtown Oakland, estimated that roughly 90% of the goods in the store are imported. If Trump’s tariffs on goods from China and Taiwan remain, prices will definitely increase, he said.\u003c/p>\n\u003cp>“Almost everything that we make is from overseas,” Peliska said. “I personally don’t think tariffs are bad … but to do it in a sort of blanket way doesn’t really make sense, and to do it without having any domestic infrastructure to replace it also doesn’t make sense.”\u003c/p>\n\u003cp>“Prices are going to go up, but for how long … we don’t know.”\u003c/p>\n\u003cfigure id=\"attachment_12034834\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12034834\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-10-BL_QED-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-10-BL_QED-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-10-BL_QED-KQED-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-10-BL_QED-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-10-BL_QED-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-10-BL_QED-KQED-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-10-BL_QED-KQED-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Taylor Peliska, a bicycle mechanic, works on a bike at King Kog Bicycle Shop in Oakland on April 7, 2025. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Other small businesses face the same uncertainty.\u003c/p>\n\u003cp>China, which exported over \u003ca href=\"https://ustr.gov/countries-regions/china-mongolia-taiwan/peoples-republic-china\">$400 billion\u003c/a> worth of goods to the United States in 2024, faces a 34% tariff, which is set to take effect Wednesday. Trump also threatened this week to impose an \u003ca href=\"https://truthsocial.com/@realDonaldTrump/posts/114297331052690348\">additional 50% tariff \u003c/a>on China after the nation announced plans to issue a 34% import fee on the U.S. in retaliation for Trump’s initial announcement.\u003c/p>\n\u003cp>Erik Bigglestone, who co-owns Games of Berkeley in the East Bay, said the store is already preparing for the worst. Nearly all of the board games and toys sold in the store are imported, and more than 90% of its products come from China, he said.[aside postID=news_12034730 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/iPhone16Getty-1020x680.jpg']Many manufacturers and store owners in the games industry are worried that the tariffs could put them out of business, Bigglestone said. Games of Berkeley, which has been in the community for nearly 45 years, is also at risk of going away, he said.\u003c/p>\n\u003cp>Suppliers have warned him that some goods may go up 10% to 25% in price over the next few weeks. As a small business, Games of Berkeley will need to pass some of those additional costs onto consumers, which could deter them from shopping locally when companies such as Amazon will be able to eat more of those import taxes, he added.\u003c/p>\n\u003cp>“It’s already expensive to do business in the Bay Area,” he said. “When you start throwing more and more expenses on top of it, that can really make people think twice about whether they even want to try and weather that storm.”\u003c/p>\n\u003cp>Bigglestone said he and the game store’s other owners have discussed raising prices preemptively so that they’re prepared for increased import costs moving forward. They’re also looking at increasing the store’s used games inventory and eliminating less popular options.\u003c/p>\n\u003cp>“It’s a pain and trauma that is being inflicted without any thought to the actual real-world consequences,” Bigglesone said.\u003c/p>\n\u003cfigure id=\"attachment_12034836\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12034836\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-13-BL_QED-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-13-BL_QED-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-13-BL_QED-KQED-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-13-BL_QED-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-13-BL_QED-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-13-BL_QED-KQED-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-13-BL_QED-KQED-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Bikes and bike frames for sale hang from the ceiling at King Kog Bicycle Shop in Oakland on April 7, 2025. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Neale Mahoney, a professor of economics at Stanford University, said Trump’s tariffs will have sweeping effects across most industries. Businesses that rely on imported goods will be the first to increase their prices, but suppliers that import raw materials will also need to adjust, he said.\u003c/p>\n\u003cp>As those businesses begin increasing the prices of their goods, even companies that don’t rely on imports will be incentivized to follow suit, driving up the expected price for certain items universally, he said.\u003c/p>\n\u003cp>Ryan Cummings, chief of staff at the Stanford Institute for Economic Policy Research, said it’s rare to see financial uncertainty that is so reversible. If Trump announced that the tariffs were canceled, a lot of the fear and anxiety driving the market would decrease, he said, referencing the sudden market downturn that followed Trump’s announcement.\u003c/p>\n\u003cp>“If these tariffs stay where they are, we’re talking about destroying global supply chains and global value chains,” Cummings said. “If the tariffs stay in place, it will not only be a recession but a deep recession. But it’s avoidable. It’s completely avoidable.”\u003c/p>\n\u003cfigure id=\"attachment_12034835\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12034835\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-12-BL_QED-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1334\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-12-BL_QED-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-12-BL_QED-KQED-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-12-BL_QED-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-12-BL_QED-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-12-BL_QED-KQED-1536x1025.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-12-BL_QED-KQED-1920x1281.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A bicycle for sale at King Kog Bicycle Shop in Oakland on April 7, 2025, displays a “Made in Cambodia” sticker. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Back in Oakland, a few doors down from King Kog Bicycle Shop is Howden Market, a small corner store that sells artisanal wines, beers and other craft goods. Kanitha Matoury, the store’s owner, said she was drawn to the neighborhood because of the beautiful building and her passion for food, drink and community.\u003c/p>\n\u003cp>While Howden sources many of its products locally, several of its nearly 200 vendors get the raw materials for their cans and bottles from overseas, Matoury said, adding that the United States doesn’t have the infrastructure and the factories to keep up with demand.\u003c/p>\n\u003cp>In recent years, inflation has made it difficult to stay afloat, Matoury said, adding that Trump’s tariffs will make it even harder. In cities such as Oakland, where the small business sector is taking a hit from increased rent and petty crime, store owners can’t take much more, she said.\u003c/p>\n\u003cp>“I believe, like what Barack Obama said, that small business is the backbone of our economy and the cornerstone of our community,” said Matoury, who is running for Oakland City Council. “Small businesses all over America are literally just closing shop.”\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Taylor Peliska, an employee at King Kog Bicycle Shop in downtown Oakland, estimated that roughly 90% of the goods in the store are imported. If Trump’s tariffs on goods from China and Taiwan remain, prices will definitely increase, he said.\u003c/p>\n\u003cp>“Almost everything that we make is from overseas,” Peliska said. “I personally don’t think tariffs are bad … but to do it in a sort of blanket way doesn’t really make sense, and to do it without having any domestic infrastructure to replace it also doesn’t make sense.”\u003c/p>\n\u003cp>“Prices are going to go up, but for how long … we don’t know.”\u003c/p>\n\u003cfigure id=\"attachment_12034834\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12034834\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-10-BL_QED-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-10-BL_QED-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-10-BL_QED-KQED-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-10-BL_QED-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-10-BL_QED-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-10-BL_QED-KQED-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-10-BL_QED-KQED-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Taylor Peliska, a bicycle mechanic, works on a bike at King Kog Bicycle Shop in Oakland on April 7, 2025. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Other small businesses face the same uncertainty.\u003c/p>\n\u003cp>China, which exported over \u003ca href=\"https://ustr.gov/countries-regions/china-mongolia-taiwan/peoples-republic-china\">$400 billion\u003c/a> worth of goods to the United States in 2024, faces a 34% tariff, which is set to take effect Wednesday. Trump also threatened this week to impose an \u003ca href=\"https://truthsocial.com/@realDonaldTrump/posts/114297331052690348\">additional 50% tariff \u003c/a>on China after the nation announced plans to issue a 34% import fee on the U.S. in retaliation for Trump’s initial announcement.\u003c/p>\n\u003cp>Erik Bigglestone, who co-owns Games of Berkeley in the East Bay, said the store is already preparing for the worst. Nearly all of the board games and toys sold in the store are imported, and more than 90% of its products come from China, he said.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Many manufacturers and store owners in the games industry are worried that the tariffs could put them out of business, Bigglestone said. Games of Berkeley, which has been in the community for nearly 45 years, is also at risk of going away, he said.\u003c/p>\n\u003cp>Suppliers have warned him that some goods may go up 10% to 25% in price over the next few weeks. As a small business, Games of Berkeley will need to pass some of those additional costs onto consumers, which could deter them from shopping locally when companies such as Amazon will be able to eat more of those import taxes, he added.\u003c/p>\n\u003cp>“It’s already expensive to do business in the Bay Area,” he said. “When you start throwing more and more expenses on top of it, that can really make people think twice about whether they even want to try and weather that storm.”\u003c/p>\n\u003cp>Bigglestone said he and the game store’s other owners have discussed raising prices preemptively so that they’re prepared for increased import costs moving forward. They’re also looking at increasing the store’s used games inventory and eliminating less popular options.\u003c/p>\n\u003cp>“It’s a pain and trauma that is being inflicted without any thought to the actual real-world consequences,” Bigglesone said.\u003c/p>\n\u003cfigure id=\"attachment_12034836\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12034836\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-13-BL_QED-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-13-BL_QED-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-13-BL_QED-KQED-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-13-BL_QED-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-13-BL_QED-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-13-BL_QED-KQED-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-13-BL_QED-KQED-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Bikes and bike frames for sale hang from the ceiling at King Kog Bicycle Shop in Oakland on April 7, 2025. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Neale Mahoney, a professor of economics at Stanford University, said Trump’s tariffs will have sweeping effects across most industries. Businesses that rely on imported goods will be the first to increase their prices, but suppliers that import raw materials will also need to adjust, he said.\u003c/p>\n\u003cp>As those businesses begin increasing the prices of their goods, even companies that don’t rely on imports will be incentivized to follow suit, driving up the expected price for certain items universally, he said.\u003c/p>\n\u003cp>Ryan Cummings, chief of staff at the Stanford Institute for Economic Policy Research, said it’s rare to see financial uncertainty that is so reversible. If Trump announced that the tariffs were canceled, a lot of the fear and anxiety driving the market would decrease, he said, referencing the sudden market downturn that followed Trump’s announcement.\u003c/p>\n\u003cp>“If these tariffs stay where they are, we’re talking about destroying global supply chains and global value chains,” Cummings said. “If the tariffs stay in place, it will not only be a recession but a deep recession. But it’s avoidable. It’s completely avoidable.”\u003c/p>\n\u003cfigure id=\"attachment_12034835\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12034835\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-12-BL_QED-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1334\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-12-BL_QED-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-12-BL_QED-KQED-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-12-BL_QED-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-12-BL_QED-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-12-BL_QED-KQED-1536x1025.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/250407-TARIFFSBAYAREASMALLBIZ-12-BL_QED-KQED-1920x1281.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A bicycle for sale at King Kog Bicycle Shop in Oakland on April 7, 2025, displays a “Made in Cambodia” sticker. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Back in Oakland, a few doors down from King Kog Bicycle Shop is Howden Market, a small corner store that sells artisanal wines, beers and other craft goods. Kanitha Matoury, the store’s owner, said she was drawn to the neighborhood because of the beautiful building and her passion for food, drink and community.\u003c/p>\n\u003cp>While Howden sources many of its products locally, several of its nearly 200 vendors get the raw materials for their cans and bottles from overseas, Matoury said, adding that the United States doesn’t have the infrastructure and the factories to keep up with demand.\u003c/p>\n\u003cp>In recent years, inflation has made it difficult to stay afloat, Matoury said, adding that Trump’s tariffs will make it even harder. In cities such as Oakland, where the small business sector is taking a hit from increased rent and petty crime, store owners can’t take much more, she said.\u003c/p>\n\u003cp>“I believe, like what Barack Obama said, that small business is the backbone of our economy and the cornerstone of our community,” said Matoury, who is running for Oakland City Council. “Small businesses all over America are literally just closing shop.”\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"content": "\u003cp>Gov. \u003ca href=\"https://www.kqed.org/news/tag/gavin-newsom\">Gavin Newsom\u003c/a> on Monday signed into law his \u003ca href=\"https://www.kqed.org/news/12006862/can-california-really-push-gas-prices-lower\">plan to prevent gas price spikes\u003c/a> after more than a month of a special legislative session.\u003c/p>\n\u003cp>Assembly Bill X2-1 will allow the California Energy Commission to require oil refiners to maintain a certain inventory of fuel to deliver during periods of maintenance that reduce refining capacity.\u003c/p>\n\u003cp>Proponents say it will lessen volatility in prices at the pump, ultimately saving Californians money. However, opposition groups, led by the oil industry, have questioned the need for a special session to address the bill and want to redirect focus to maintaining the state’s dwindling number of oil refiners.\u003c/p>\n\u003cp>Newsom said he was proud that the Assembly was able to get the bill through despite pushback from the oil industry, particularly the Western States Petroleum Association.\u003c/p>\n\u003cp>“Big oil that knowingly continues to lie to the people of this state, our nation, for that matter, around the world,” Newsom said. “They are the polluted heart of this climate crisis. They continue to lie and they continue to manipulate. And they’re taking advantage of you.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Newsom had hoped to pass the bill at the end of this year’s regular session but wasn’t able to get it through. In a statement, he said he had called for a special session this fall to address gas price spikes after identifying the problem as a result of gas-related bills passed during a special session last year.\u003c/p>\n\u003cp>Assemblymember Alex Lee, one of the principal co-authors of ABX2-1, said that working through the bill in a special session has given lawmakers more time to focus on the oil industry.\u003c/p>\n\u003cp>“We are opening up the big oil and oil industry to more scrutiny by our public regulators, enabling us to understand more how they price gouge and set prices,” he told KQED. “The more and more we’ve learned from the sector, there are very few … actors who play a big part in why there are so many shocking price spikes at the pump.”\u003c/p>\n\u003cp>The WSPA criticized the special session as unnecessary. Catherine Reheis-Boyd, the industry association’s CEO, said the state should be focused on retaining its refiners, which have dropped from 30 to nine since the 1990s.\u003c/p>\n\u003cp>“We don’t need a rushed special session to address the needed infrastructure and investment that we should be talking about to keep refineries running and producers producing,” Reheis-Boyd told KQED. “In our opinion, the conversation should be focused on production, on pipelines, on ports and all that impact on refineries.”\u003c/p>\n\u003cp>As time ran out on the regular legislative session, Newsom had found himself \u003ca href=\"https://www.kqed.org/science/1994047/newsom-is-in-a-standoff-with-democrats-on-energy-bills-time-is-running-out\">locked in a stalemate with lawmakers\u003c/a> over his energy agenda and whether to call the special session, which Senate President Pro Tem Mike McGuire (D–Healdsburg) was initially firmly against.\u003c/p>\n\u003cp>Republicans and labor groups also opposed the bill, and it did not receive universal support from Newsom’s own party.\u003c/p>\n\u003cp>Almost a fourth of Senate Democrats did not support the bill — Sen. Melissa Hurtado (D–Sanger) joined Republicans in voting against it, and eight Democrats abstained or were absent. The bill \u003ca href=\"https://www.kqed.org/news/12009203/california-senate-passes-bill-aimed-at-preventing-gas-price-spikes\">passed the Senate\u003c/a> on Friday with a 23–9 majority.\u003c/p>\n\u003cp>In the \u003ca href=\"https://www.kqed.org/news/12007232/california-lawmakers-pass-legislation-prevent-gas-price-spikes\">previous Assembly vote\u003c/a>, Assemblymembers Jasmeet Bains (D–Delano) and Esmeralda Soria (D–Fresno) joined Republican lawmakers opposing the bill, while 44 voted in favor. The other 17 lawmakers abstained.\u003c/p>\n\u003cp>[aside label='Related Coverage' tag='gas-prices']\u003c/p>\n\u003cp>While Newsom has touted the bill as a way to protect consumers from surging gas prices, Reheis-Boyd argued that it could increase prices if refiners are forced to maintain a reserve. She said there should be more focus on the fees and taxes Californians pay on gas.\u003c/p>\n\u003cp>Lee, however, said that those costs don’t add to the volatility ABX2-1 is designed to address.\u003c/p>\n\u003cp>“Conservatives and the oil companies love to blame taxes and fees and regulations, but those things are very constant,” he said. “What isn’t constant is if the consumer goes to the pump one week and it’s one price and then another week, it’s 10% more, and another week it’s 5% less.”\u003c/p>\n\u003cp>Lee \u003ca href=\"https://www.kqed.org/news/12007232/california-lawmakers-pass-legislation-prevent-gas-price-spikes\">previously told KQED\u003c/a> that Assembly hearings throughout the session have shown that these spikes and dips are due to oil availability and that without inventory concerns, “there should be much lower prices” for Californians.\u003c/p>\n\u003cp>Assemblymember Gregg Hart (D–Santa Barbara), who introduced the bill, \u003ca href=\"https://www.kqed.org/news/12007232/california-lawmakers-pass-legislation-prevent-gas-price-spikes\">told KQED earlier this month\u003c/a> that part of the reason the bill is needed is because the number of refiners in California will only continue to decline as the state moves to phase out gas cars.\u003c/p>\n\u003cp>“We will have constraints that occur with fuel supply as these steps in the ladder go down and refineries are closed,” he said. “We have to manage this collaboratively with the oil industry and figure out a way to smooth that out and make it work for consumers.”\u003c/p>\n\u003cp>Newsom said that now, the CEC will meet to assess the oil market and supply demands, look at health and safety concerns raised by refinery workers, and more to ultimately come up with the right standards.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>“I don’t want to overstate, I don’t want to overpromise, but we now have the tools,” he said.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Gov. \u003ca href=\"https://www.kqed.org/news/tag/gavin-newsom\">Gavin Newsom\u003c/a> on Monday signed into law his \u003ca href=\"https://www.kqed.org/news/12006862/can-california-really-push-gas-prices-lower\">plan to prevent gas price spikes\u003c/a> after more than a month of a special legislative session.\u003c/p>\n\u003cp>Assembly Bill X2-1 will allow the California Energy Commission to require oil refiners to maintain a certain inventory of fuel to deliver during periods of maintenance that reduce refining capacity.\u003c/p>\n\u003cp>Proponents say it will lessen volatility in prices at the pump, ultimately saving Californians money. However, opposition groups, led by the oil industry, have questioned the need for a special session to address the bill and want to redirect focus to maintaining the state’s dwindling number of oil refiners.\u003c/p>\n\u003cp>Newsom said he was proud that the Assembly was able to get the bill through despite pushback from the oil industry, particularly the Western States Petroleum Association.\u003c/p>\n\u003cp>“Big oil that knowingly continues to lie to the people of this state, our nation, for that matter, around the world,” Newsom said. “They are the polluted heart of this climate crisis. They continue to lie and they continue to manipulate. And they’re taking advantage of you.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Newsom had hoped to pass the bill at the end of this year’s regular session but wasn’t able to get it through. In a statement, he said he had called for a special session this fall to address gas price spikes after identifying the problem as a result of gas-related bills passed during a special session last year.\u003c/p>\n\u003cp>Assemblymember Alex Lee, one of the principal co-authors of ABX2-1, said that working through the bill in a special session has given lawmakers more time to focus on the oil industry.\u003c/p>\n\u003cp>“We are opening up the big oil and oil industry to more scrutiny by our public regulators, enabling us to understand more how they price gouge and set prices,” he told KQED. “The more and more we’ve learned from the sector, there are very few … actors who play a big part in why there are so many shocking price spikes at the pump.”\u003c/p>\n\u003cp>The WSPA criticized the special session as unnecessary. Catherine Reheis-Boyd, the industry association’s CEO, said the state should be focused on retaining its refiners, which have dropped from 30 to nine since the 1990s.\u003c/p>\n\u003cp>“We don’t need a rushed special session to address the needed infrastructure and investment that we should be talking about to keep refineries running and producers producing,” Reheis-Boyd told KQED. “In our opinion, the conversation should be focused on production, on pipelines, on ports and all that impact on refineries.”\u003c/p>\n\u003cp>As time ran out on the regular legislative session, Newsom had found himself \u003ca href=\"https://www.kqed.org/science/1994047/newsom-is-in-a-standoff-with-democrats-on-energy-bills-time-is-running-out\">locked in a stalemate with lawmakers\u003c/a> over his energy agenda and whether to call the special session, which Senate President Pro Tem Mike McGuire (D–Healdsburg) was initially firmly against.\u003c/p>\n\u003cp>Republicans and labor groups also opposed the bill, and it did not receive universal support from Newsom’s own party.\u003c/p>\n\u003cp>Almost a fourth of Senate Democrats did not support the bill — Sen. Melissa Hurtado (D–Sanger) joined Republicans in voting against it, and eight Democrats abstained or were absent. The bill \u003ca href=\"https://www.kqed.org/news/12009203/california-senate-passes-bill-aimed-at-preventing-gas-price-spikes\">passed the Senate\u003c/a> on Friday with a 23–9 majority.\u003c/p>\n\u003cp>In the \u003ca href=\"https://www.kqed.org/news/12007232/california-lawmakers-pass-legislation-prevent-gas-price-spikes\">previous Assembly vote\u003c/a>, Assemblymembers Jasmeet Bains (D–Delano) and Esmeralda Soria (D–Fresno) joined Republican lawmakers opposing the bill, while 44 voted in favor. The other 17 lawmakers abstained.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>While Newsom has touted the bill as a way to protect consumers from surging gas prices, Reheis-Boyd argued that it could increase prices if refiners are forced to maintain a reserve. She said there should be more focus on the fees and taxes Californians pay on gas.\u003c/p>\n\u003cp>Lee, however, said that those costs don’t add to the volatility ABX2-1 is designed to address.\u003c/p>\n\u003cp>“Conservatives and the oil companies love to blame taxes and fees and regulations, but those things are very constant,” he said. “What isn’t constant is if the consumer goes to the pump one week and it’s one price and then another week, it’s 10% more, and another week it’s 5% less.”\u003c/p>\n\u003cp>Lee \u003ca href=\"https://www.kqed.org/news/12007232/california-lawmakers-pass-legislation-prevent-gas-price-spikes\">previously told KQED\u003c/a> that Assembly hearings throughout the session have shown that these spikes and dips are due to oil availability and that without inventory concerns, “there should be much lower prices” for Californians.\u003c/p>\n\u003cp>Assemblymember Gregg Hart (D–Santa Barbara), who introduced the bill, \u003ca href=\"https://www.kqed.org/news/12007232/california-lawmakers-pass-legislation-prevent-gas-price-spikes\">told KQED earlier this month\u003c/a> that part of the reason the bill is needed is because the number of refiners in California will only continue to decline as the state moves to phase out gas cars.\u003c/p>\n\u003cp>“We will have constraints that occur with fuel supply as these steps in the ladder go down and refineries are closed,” he said. “We have to manage this collaboratively with the oil industry and figure out a way to smooth that out and make it work for consumers.”\u003c/p>\n\u003cp>Newsom said that now, the CEC will meet to assess the oil market and supply demands, look at health and safety concerns raised by refinery workers, and more to ultimately come up with the right standards.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>“I don’t want to overstate, I don’t want to overpromise, but we now have the tools,” he said.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>No sooner had Gov. Gavin Newsom cut billions of dollars in spending to close a budget deficit in June than California received an unexpected tax windfall, one that has people in the Capitol speculating about where the avalanche of money came from.\u003c/p>\n\u003cp>More corporate taxes than expected poured into state coffers this summer, with cash receipts exceeding forecasts by nearly $2 billion since April. An especially big surge came in July, and state officials and accounting experts think the extra receipts came from a small number of companies — most likely one or more Silicon Valley tech firms, with artificial intelligence chipmaker Nvidia a leading candidate.\u003c/p>\n\u003cp>The influx highlights a growing tension in California between its tendency to further regulate tech companies — the governor has signed six bills governing the use of artificial intelligence so far this year — and its \u003ca href=\"https://calmatters.org/economy/2024/01/ca-tech-tax-withholding/\">reliance on them for tax revenue\u003c/a>.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>On a single day, July 16, the state received more than $800 million than expected in corporate tax payments, “by far its single biggest day of collections” for a July going back at least four decades, state deputy legislative analyst Brian Uhler told CalMatters. (He excluded 2020 because the pandemic delayed tax deadlines.)\u003c/p>\n\u003cp>This July, the Finance Department said it collected about $1.4 billion in corporate taxes, nearly three times the agency’s forecast of $500 million. In June, corporate taxes were $263 million above forecast, and in May, $752 million over. “The July average was likely due to large payments by a small number of companies and may not necessarily be indicative of overall corporation tax revenue trends,” the department \u003ca href=\"https://dof.ca.gov/wp-content/uploads/sites/352/2024/08/Finance-Bulletin-August-2024.pdf\">said in its monthly bulletin (PDF)\u003c/a>.\u003c/p>\n\u003cp>Tax records are confidential, and representatives from both the Finance Department and the Franchise Tax Board stressed that nobody at the state is allowed to discuss details or information from specific tax returns or payments.\u003c/p>\n\u003cp>But the July influx in corporate tax payments was likely related to changes in state tax rules adopted in June, according to state and accounting experts who spoke with CalMatters. The tax changes, intended to help close the deficit, include a suspension of a deduction businesses can claim to offset profit, called the net operating loss deduction, as well as a $5 million limit on how much businesses can claim for research and development and other tax credits.\u003c/p>\n\u003cp>It’s possible that companies expecting to have outsized profit realized they owed more in taxes and needed to make large estimated tax payments immediately after the changes were enacted, accounting experts said. Corporations that expect to owe taxes are required to make quarterly estimated tax payments and can incur penalties if the payments are late. \u003ca href=\"https://www.lao.ca.gov/Publications/Report/4902\">State analysts believe\u003c/a> the new taxes could disproportionately come from “businesses in riskier or more innovative industries — such as the technology, motion picture, and transportation sectors,” as they put it when the changes were proposed.\u003c/p>\n\u003cp>In California, a red-hot tech company fits the bill of outsized profits and risky innovation: Nvidia, which is raking in record amounts of money because of the artificial intelligence boom.\u003c/p>\n\u003cp>As other companies scramble to get ahead in the AI race, they are buying Nvidia’s chips and propelling the company to new heights. On Aug. 28, Nvidia reported second-quarter net income of $16.6 billion, which was more than double its profit from the same period last year — and about the same amount spent by \u003ca href=\"https://www.opensecrets.org/news/2022/11/total-cost-of-2022-state-and-federal-elections-projected-to-exceed-16-7-billion/\">all state and federal campaigns\u003c/a> in the last election.\u003c/p>\n\u003cp>Nvidia’s annual financial report from 2023 shows that it had $1.5 billion in unused California tax credits for research and development. Between the cap on that tax credit and the suspension of the loss deduction the company could have claimed against its rising profit, Nvidia probably realized it would have a larger tax bill, accounting experts told CalMatters. That’s why it may have been the company or one of the companies that made the sizable estimated tax payment to the state.\u003c/p>\n\u003cp>Nvidia’s most recent quarterly filing provides additional clues: The company paid a total of $7.21 billion in income taxes in the second quarter, a whopping 31-fold increase from the $227 million it paid in taxes in the same period last year. For the first six months of its 2024 fiscal year, Nvidia paid $7.45 billion in income taxes, compared with $328 million in the first half of 2023. Those totals included federal and state taxes. California has a flat corporate tax rate of 8.84% of a company’s net income, while the federal tax rate is a flat 21%.\u003c/p>\n\u003cp>If Nvidia was largely responsible for the July tax windfall, due to an estimated tax payment, the company likely expects a lot of taxable income this year, said Francine McKenna, an independent financial journalist who writes the Dig newsletter and has taught financial accounting at the University of Pennsylvania’s Wharton business school. McKenna said if that’s the case, and because there’s a limit on how much the company can claim in terms of other tax credits, Nvidia will likely make another sizable estimated tax payment in the third quarter.\u003c/p>\n\u003cp>An Nvidia spokesperson would not comment. Neither would a spokesperson for Gov. Gavin Newsom.\u003c/p>\n\u003cp>“I’d expect payments from other companies as well, potentially,” said Brett Whitaker, a former tax executive at Ernst & Young, Nike and Mattel who now teaches corporate tax accounting at Indiana University. “They depend on these credits often to avoid paying tax, so suspending them could drive tax for many.”\u003c/p>\n\u003cp>Whitaker said most companies try to take advantage of R&D tax credits: “Big Four (accounting) firms have entire teams dedicated solely to this effort.” But he added that the credits are especially commonly used by tech companies and others whose businesses rely on innovation.\u003c/p>\n\u003cp>It’s hard to tell exactly when those other estimated tax payments will come and how significant they will be, Finance Department spokesperson H.D. Palmer said.\u003c/p>\n\u003cp>Estimated tax payments are due in April, June, September and January, but those payments are not always made on time so can come in at any time, according to the Franchise Tax Board.\u003c/p>\n\u003cp>A CalMatters examination of Silicon Valley’s biggest tech companies’ financial filings with the federal Securities and Exchange Commission suggests that some of them may also be affected by the tax changes. That means the companies could make estimated tax payments that could be similar in size to the ones the state received in July.\u003c/p>\n\u003cp>Apple, Google parent Alphabet and Facebook parent Meta are among the companies whose financial filings show they have past losses, which they could normally deduct, and/or unused research and development tax credits in the state.\u003c/p>\n\u003cp>As of last Dec. 31, Alphabet had $18.6 billion in old losses in California. The tech giant also had $6.3 billion in research and development credits.\u003cstrong> \u003c/strong>As of the same date, Meta had $2.78 billion in past losses in the state, as well as $4.08 billion in unspecified state tax credits from prior periods. And as of Sept. 30, 2023, Apple had $3 billion in research and development credits. All these companies are highly profitable, and whatever deductions and credits they were expecting to use are now either on hold or limited.\u003c/p>\n\u003cp>According to \u003ca href=\"https://digitaldemocracy.calmatters.org/bills/ca_202320240sb167?slug=CA_202320240SB167\">the analysis of the budget bill that included the tax changes\u003c/a>, California’s deduction suspension and tax-credit limits could increase state revenue by $5.95 billion this fiscal year, $5.5 billion the following fiscal year and $3.4 billion the year after that.\u003c/p>\n\u003cp>[aside label=\"Related Stories\" postID=\"news_11972309,news_11992607,forum_2010101906396\"]\u003c/p>\n\u003cp>The tax changes split state lawmakers mostly along party lines when the governor proposed them in his budget earlier this year. Democrats characterized the changes as necessary, while Republicans decried them as a burden on businesses.\u003c/p>\n\u003cp>Democratic state Sen. Scott Wiener from San Francisco, a supporter of the changes, said in an emailed statement to CalMatters: “It is important not to read too much into any single month revenue numbers, but we believe that tough decisions we made this year will strengthen the state’s fiscal health going forward while protecting our core programs and benefiting the overall economy.”\u003c/p>\n\u003cp>Sen. Roger Niello, a Republican from Roseville, an opponent of the changes and a former accountant, told CalMatters he checked with his fiscal staff as well as the Legislative Analyst’s Office about the bigger-than-expected corporate tax payments in July. “It’s reasonable to consider that it’s because of tax changes, but they really don’t know,” he said.”It does appear to be from large deposits from a few companies.”\u003c/p>\n\u003cp>Niello said the state has disallowed the deduction for operating losses in nearly half of the years between 2008 and 2027, citing a finding by the Legislative Analyst’s Office in \u003ca href=\"https://www.lao.ca.gov/Publications/Report/4902\">a May report\u003c/a>. The deductions are supposed to help make taxes roughly even for businesses with similar total profits over the course of multiple years.\u003c/p>\n\u003cp>Suspending that deduction “appears to be a go-to measure by the state for accounting for revenue shortfalls,” Niello said. “It’s something that businesses cannot rely on now.”\u003c/p>\n\u003cp>In addition to the tax changes, California tech firms have navigated various legislative fights and new regulations this year. The biggest battle was over a bill to force them to test powerful artificial intelligence models for their potential to enable cyberattacks, the creation of weapons of mass destruction, and other threats to infrastructure. Several big tech companies opposed the legislation, saying it would hinder innovation, while prominent whistleblowers said it would help mitigate the reckless pursuit of tech profits. The measure, from Wiener, cleared the Legislature \u003ca href=\"https://calmatters.org/economy/2024/09/california-artificial-intelligence-bill-veto/\">only to be vetoed\u003c/a> by Gov. Gavin Newsom this past weekend. The \u003ca href=\"https://calmatters.org/explainers/new-california-laws-2024/\">governor also signed into law bills\u003c/a> that would \u003ca href=\"https://calmatters.org/politics/elections/2024/02/ai-elections-bill-package/\">protect voters from deepfakes\u003c/a> and allow victims of doxxing to \u003ca href=\"https://calmatters.org/politics/capitol/2024/06/doxxing-bill-california/\">sue their attackers in civil court\u003c/a>.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>No sooner had Gov. Gavin Newsom cut billions of dollars in spending to close a budget deficit in June than California received an unexpected tax windfall, one that has people in the Capitol speculating about where the avalanche of money came from.\u003c/p>\n\u003cp>More corporate taxes than expected poured into state coffers this summer, with cash receipts exceeding forecasts by nearly $2 billion since April. An especially big surge came in July, and state officials and accounting experts think the extra receipts came from a small number of companies — most likely one or more Silicon Valley tech firms, with artificial intelligence chipmaker Nvidia a leading candidate.\u003c/p>\n\u003cp>The influx highlights a growing tension in California between its tendency to further regulate tech companies — the governor has signed six bills governing the use of artificial intelligence so far this year — and its \u003ca href=\"https://calmatters.org/economy/2024/01/ca-tech-tax-withholding/\">reliance on them for tax revenue\u003c/a>.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>On a single day, July 16, the state received more than $800 million than expected in corporate tax payments, “by far its single biggest day of collections” for a July going back at least four decades, state deputy legislative analyst Brian Uhler told CalMatters. (He excluded 2020 because the pandemic delayed tax deadlines.)\u003c/p>\n\u003cp>This July, the Finance Department said it collected about $1.4 billion in corporate taxes, nearly three times the agency’s forecast of $500 million. In June, corporate taxes were $263 million above forecast, and in May, $752 million over. “The July average was likely due to large payments by a small number of companies and may not necessarily be indicative of overall corporation tax revenue trends,” the department \u003ca href=\"https://dof.ca.gov/wp-content/uploads/sites/352/2024/08/Finance-Bulletin-August-2024.pdf\">said in its monthly bulletin (PDF)\u003c/a>.\u003c/p>\n\u003cp>Tax records are confidential, and representatives from both the Finance Department and the Franchise Tax Board stressed that nobody at the state is allowed to discuss details or information from specific tax returns or payments.\u003c/p>\n\u003cp>But the July influx in corporate tax payments was likely related to changes in state tax rules adopted in June, according to state and accounting experts who spoke with CalMatters. The tax changes, intended to help close the deficit, include a suspension of a deduction businesses can claim to offset profit, called the net operating loss deduction, as well as a $5 million limit on how much businesses can claim for research and development and other tax credits.\u003c/p>\n\u003cp>It’s possible that companies expecting to have outsized profit realized they owed more in taxes and needed to make large estimated tax payments immediately after the changes were enacted, accounting experts said. Corporations that expect to owe taxes are required to make quarterly estimated tax payments and can incur penalties if the payments are late. \u003ca href=\"https://www.lao.ca.gov/Publications/Report/4902\">State analysts believe\u003c/a> the new taxes could disproportionately come from “businesses in riskier or more innovative industries — such as the technology, motion picture, and transportation sectors,” as they put it when the changes were proposed.\u003c/p>\n\u003cp>In California, a red-hot tech company fits the bill of outsized profits and risky innovation: Nvidia, which is raking in record amounts of money because of the artificial intelligence boom.\u003c/p>\n\u003cp>As other companies scramble to get ahead in the AI race, they are buying Nvidia’s chips and propelling the company to new heights. On Aug. 28, Nvidia reported second-quarter net income of $16.6 billion, which was more than double its profit from the same period last year — and about the same amount spent by \u003ca href=\"https://www.opensecrets.org/news/2022/11/total-cost-of-2022-state-and-federal-elections-projected-to-exceed-16-7-billion/\">all state and federal campaigns\u003c/a> in the last election.\u003c/p>\n\u003cp>Nvidia’s annual financial report from 2023 shows that it had $1.5 billion in unused California tax credits for research and development. Between the cap on that tax credit and the suspension of the loss deduction the company could have claimed against its rising profit, Nvidia probably realized it would have a larger tax bill, accounting experts told CalMatters. That’s why it may have been the company or one of the companies that made the sizable estimated tax payment to the state.\u003c/p>\n\u003cp>Nvidia’s most recent quarterly filing provides additional clues: The company paid a total of $7.21 billion in income taxes in the second quarter, a whopping 31-fold increase from the $227 million it paid in taxes in the same period last year. For the first six months of its 2024 fiscal year, Nvidia paid $7.45 billion in income taxes, compared with $328 million in the first half of 2023. Those totals included federal and state taxes. California has a flat corporate tax rate of 8.84% of a company’s net income, while the federal tax rate is a flat 21%.\u003c/p>\n\u003cp>If Nvidia was largely responsible for the July tax windfall, due to an estimated tax payment, the company likely expects a lot of taxable income this year, said Francine McKenna, an independent financial journalist who writes the Dig newsletter and has taught financial accounting at the University of Pennsylvania’s Wharton business school. McKenna said if that’s the case, and because there’s a limit on how much the company can claim in terms of other tax credits, Nvidia will likely make another sizable estimated tax payment in the third quarter.\u003c/p>\n\u003cp>An Nvidia spokesperson would not comment. Neither would a spokesperson for Gov. Gavin Newsom.\u003c/p>\n\u003cp>“I’d expect payments from other companies as well, potentially,” said Brett Whitaker, a former tax executive at Ernst & Young, Nike and Mattel who now teaches corporate tax accounting at Indiana University. “They depend on these credits often to avoid paying tax, so suspending them could drive tax for many.”\u003c/p>\n\u003cp>Whitaker said most companies try to take advantage of R&D tax credits: “Big Four (accounting) firms have entire teams dedicated solely to this effort.” But he added that the credits are especially commonly used by tech companies and others whose businesses rely on innovation.\u003c/p>\n\u003cp>It’s hard to tell exactly when those other estimated tax payments will come and how significant they will be, Finance Department spokesperson H.D. Palmer said.\u003c/p>\n\u003cp>Estimated tax payments are due in April, June, September and January, but those payments are not always made on time so can come in at any time, according to the Franchise Tax Board.\u003c/p>\n\u003cp>A CalMatters examination of Silicon Valley’s biggest tech companies’ financial filings with the federal Securities and Exchange Commission suggests that some of them may also be affected by the tax changes. That means the companies could make estimated tax payments that could be similar in size to the ones the state received in July.\u003c/p>\n\u003cp>Apple, Google parent Alphabet and Facebook parent Meta are among the companies whose financial filings show they have past losses, which they could normally deduct, and/or unused research and development tax credits in the state.\u003c/p>\n\u003cp>As of last Dec. 31, Alphabet had $18.6 billion in old losses in California. The tech giant also had $6.3 billion in research and development credits.\u003cstrong> \u003c/strong>As of the same date, Meta had $2.78 billion in past losses in the state, as well as $4.08 billion in unspecified state tax credits from prior periods. And as of Sept. 30, 2023, Apple had $3 billion in research and development credits. All these companies are highly profitable, and whatever deductions and credits they were expecting to use are now either on hold or limited.\u003c/p>\n\u003cp>According to \u003ca href=\"https://digitaldemocracy.calmatters.org/bills/ca_202320240sb167?slug=CA_202320240SB167\">the analysis of the budget bill that included the tax changes\u003c/a>, California’s deduction suspension and tax-credit limits could increase state revenue by $5.95 billion this fiscal year, $5.5 billion the following fiscal year and $3.4 billion the year after that.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The tax changes split state lawmakers mostly along party lines when the governor proposed them in his budget earlier this year. Democrats characterized the changes as necessary, while Republicans decried them as a burden on businesses.\u003c/p>\n\u003cp>Democratic state Sen. Scott Wiener from San Francisco, a supporter of the changes, said in an emailed statement to CalMatters: “It is important not to read too much into any single month revenue numbers, but we believe that tough decisions we made this year will strengthen the state’s fiscal health going forward while protecting our core programs and benefiting the overall economy.”\u003c/p>\n\u003cp>Sen. Roger Niello, a Republican from Roseville, an opponent of the changes and a former accountant, told CalMatters he checked with his fiscal staff as well as the Legislative Analyst’s Office about the bigger-than-expected corporate tax payments in July. “It’s reasonable to consider that it’s because of tax changes, but they really don’t know,” he said.”It does appear to be from large deposits from a few companies.”\u003c/p>\n\u003cp>Niello said the state has disallowed the deduction for operating losses in nearly half of the years between 2008 and 2027, citing a finding by the Legislative Analyst’s Office in \u003ca href=\"https://www.lao.ca.gov/Publications/Report/4902\">a May report\u003c/a>. The deductions are supposed to help make taxes roughly even for businesses with similar total profits over the course of multiple years.\u003c/p>\n\u003cp>Suspending that deduction “appears to be a go-to measure by the state for accounting for revenue shortfalls,” Niello said. “It’s something that businesses cannot rely on now.”\u003c/p>\n\u003cp>In addition to the tax changes, California tech firms have navigated various legislative fights and new regulations this year. The biggest battle was over a bill to force them to test powerful artificial intelligence models for their potential to enable cyberattacks, the creation of weapons of mass destruction, and other threats to infrastructure. Several big tech companies opposed the legislation, saying it would hinder innovation, while prominent whistleblowers said it would help mitigate the reckless pursuit of tech profits. The measure, from Wiener, cleared the Legislature \u003ca href=\"https://calmatters.org/economy/2024/09/california-artificial-intelligence-bill-veto/\">only to be vetoed\u003c/a> by Gov. Gavin Newsom this past weekend. The \u003ca href=\"https://calmatters.org/explainers/new-california-laws-2024/\">governor also signed into law bills\u003c/a> that would \u003ca href=\"https://calmatters.org/politics/elections/2024/02/ai-elections-bill-package/\">protect voters from deepfakes\u003c/a> and allow victims of doxxing to \u003ca href=\"https://calmatters.org/politics/capitol/2024/06/doxxing-bill-california/\">sue their attackers in civil court\u003c/a>.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"info": "Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. Possible paints an optimistic portrait of the world we can create through science, policy, business, art and our shared humanity. It asks: What if everything goes right for once? How can we get there? Each episode also includes a short fiction story generated by advanced AI GPT-4, serving as a thought-provoking springboard to speculate how humanity could leverage technology for good.",
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