Daily Business Report: Nov. 15, 2024
Trump’s proposed tariffs, especially on China
and Mexico, could hit California hard
By Levi Sumagaysay | CalMatters
A range of experts, from Nobel Prize-winning economists to an internet-famous menswear writer, have a message for Americans who voted for Donald Trump based on his promises to bring down prices: This likely won’t go how you want.
Some voters cited the cost of living as a factor in their decision to elect Trump to a second term as president. But with inflation actually starting to ease, his proposed tariffs, which the president-elect has called the “most beautiful word in the dictionary,” could actually raise prices again.
While some experts don’t think more tariffs are a bad idea, the majority of economists and other experts who spoke with CalMatters echoed 23 Nobel laureates who warned that Trump’s policies would be worse for the economy than the ones proposed by Vice President Kamala Harris. Those economists wrote a letter last month calling Harris’ economic agenda “vastly superior” to Trump’s, and mentioned tariffs as one reason.
“His policies, including high tariffs even on goods from our friends and allies and regressive tax cuts for corporations and individuals, will lead to higher prices, larger deficits, and greater inequality,” the economists wrote.
Businesses that import goods into the country must pay the tariffs. They tend to pass on their increased costs to consumers, with some executives recently promising to do just that during their earnings calls. So economists largely view tariffs as a tax, especially on the lowest- and middle-income families in the nation.
While tariffs could raise prices for all U.S. consumers, California could feel the brunt of the impact in part because of the countries Trump singled out during his campaign: China and Mexico. Those two countries accounted for 40% of the state’s imports in 2023.
“The port and logistics complex in Southern California is a very important part of the economy, and directly tied to the countries he threatened,” said Stephen Levy, an economist and director of the Center for Continuing Study of the California Economy, an independent, private research organization in Silicon Valley.
Trump imposed tariffs during his first presidential term, and President Joe Biden maintained some of them. During his campaign this time around, Trump said he intends to impose tariffs of 10% to 20% on all imports, and has mentioned even higher tariffs on goods from China (60%) and Mexico (100% to 200% on cars).
Such tariffs could exacerbate California’s already high cost of living and raise the prices of cars, technology and electronic products, medical devices, groceries and more. Also, as the state saw during Trump’s first term — which included a trade war, with countries retaliating with their own tariffs on U.S. exports — California’s agricultural industry is likely to feel the effects. Trump’s proposed tariffs could also have an adverse effect on the state’s ports, which are among the nation’s busiest.
And all of those outcomes could have a ripple effect on jobs in the state, including those in agriculture, trade and manufacturing.
Top Photo: Container ships are unloaded at The Port of Los Angeles on Sept. 7, 2024. The Port of Los Angeles and San Pedro are the biggest ports in the United States and are the 9th biggest ports in the world. (Photo by Paul Harris/Abaca, Sipa USA via AP Photo)
Gaylord Pacific Resort and Convention Center
to open summer 2025 in Chula Vista
Chula Vista’s anticipated Gaylord Pacific Resort and Convention Center is well underway and on track to open in summer 2025. Watch the progress live in the latest aerial drone footage. The hotel will have 1,600 rooms, including 89 Premium Suites; 477,259 square feet of flexible indoor and outdoor event spaces; 10+ restaurant and bars, including Old Hickory Steakhouse; state-of-the-art fitness center and award-winning Relâche Spa & Salon; views of the San Diego Bay, 4.25-acre water park experience featuring all-new waterslides, a lazy river, wave pool, giant water playground, and more.
(Credit:HKS Architects)
County receives $125,000 grant for bicycle and pedestrian safety program
The County’s Health and Human Services Agency has received a $125,000 grant from the California Office of Traffic Safety (OTS) to support its Bicycle and Pedestrian Safety Program. The program will promote safe practices for pedestrians, bicyclists, and drivers’ on how to responsibly share roads and paths. The grant program runs through September 2025.
Funding for this program was provided by a grant from the California Office of Traffic Safety, through the National Highway Traffic Safety Administration.
Financing arranged for Lakeside’s Magnolia Terrace Apartments
Marcus & Millichap Capital Corporation arranged $6 million for the refinance of Magnolia Terrace Apartments, a 54-unit multifamily property located at 9760 Marilla Drive in Lakeside. Chad O’Connor, executive managing director in MMCC’s office secured the financing with a local credit union on behalf of a private client.
Terms of the 10-year loan include a 5.39% fixed interest rate with 30-years amortization and a loan-to-value of 60%. The property is located near the San Vicente Freeway and features a mix of studio to two-bedroom garden style units. On-site amenities include a fitness center, courtyard, picnic area and laundry facilities.
Golden Hill’s Union Hall Gallery hosts
exhibition of original works by regional artists
From now through Dec. 1, Union Hall Gallery will host an exceptional collection of over 40 original works by a selection of the region’s most accomplished artists along with several watercolors and sculptures from late sculptor-builder James Hubbell. Each drawing inspiration from Hubbell’s enchanting Ilan-Lael home, the 2024 Visiting Artist Fellows present their work in the exhibition titled “The Power of Place: Inspirations from Ilan-Lael.” The works are featured at Union Hall Gallery, a newly revitalized studio space in downtown San Diego.
Union Hall Gallery is located in Golden Hill at the historic San Diego Carpenter’s Union Hall building. Built by Local 1296, International Brotherhood of Carpenters and Joiners in 1948, the building has been home to several trade unions, an artist collective, the San Diego Reader, and a music venue. Recently rehabilitated by the owners of Santa Ysabel Art Gallery, Union Hall Gallery aims to support and showcase local and bi-national artists.
Voters support $3.5 billion measure
to renovate SDCCD classrooms
San Diego voters have endorsed a proposal to provide $3.5 billion to upgrade, repair and renovate classrooms and facilities at the San Diego Community College District. Measure HH secured support from nearly 60% of voters (55% required to pass), positioning the district to better serve students and the community for decades to come.
According to SDCCD Chancellor Gregory Smith, Measure HH will provide state-of-the-art facilities and technology to prepare students at San Diego City, Mesa, Miramar, and Continuing Education colleges for successful careers and contribute to the growth of our regional economy, for which the SDCCD has a $5.8 billion annual impact.
“For more than 100 years, the colleges in the San Diego Community College District have provided the foundation for building better futures in the San Diego region,” said Smith. “The district sincerely appreciates voters for supporting Measure HH, which will enable us to keep that foundation strong and vibrant.”
General Atomics’ Gray Eagle STOL aircraft
makes historic first flight from ship to land
General Atomics Aeronautical Systems Inc. (GA-ASI) logged another aviation milestone on Nov. 12, 2024, when its Gray Eagle STOL aircraft took off from a South Korean warship and landed at a ground base – the first-ever such mission for an aircraft of this type. Working with our GA-ASI’s in-country partner, Hanwha Aerospace, Gray Eagle STOL launched from the South Korean navy’s amphibious landing ship Dokdo underway at sea off the coast of Pohang, South Korea. The Unmanned Aircraft System (UAS) then flew to Pohang Navy Airfield and landed normally.
Gray Eagle STOL – which stands for short takeoff and landing – is the only medium-altitude, long-endurance aircraft of its kind with the ability to operate from large-deck warships such as amphibious ships and aircraft carriers, as well as short and unimproved fields on land. The test with the South Korean military further validates the aircraft’s capability and versatility.
“We applaud the South Korean navy for its foresight in examining the unique capability of GE STOL for its fleet. This demonstration illustrates the ability of the GE STOL to safely operate on many types of aircraft-capable ships, which opens myriad new ways our allies can use this UAS to support multi-domain naval operations,” said GA-ASI CEO Linden Blue.
NeoVolta $250 million loan application approved by DOE
NeoVolta, a leading innovator in energy storage solutions, announced that it has completed phase one of its loan application for $250 million from the U.S. Department of Energy (DOE) Title 17 Loan Program (LPO) and has been approved to proceed with phase two technical due diligence.
To meet domestic content requirements for commercial grade Battery Electric Storage Systems (BESS) and other components, the company will establish a state-of-the-art manufacturing facility that can accommodate more than 150 high-paid employees.
Mitchell releases EV collision report
Mitchell, an Enlyte company and leading technology and information provider for the Property & Casualty (P&C) claims and Collision Repair industries, announced the release of its Q3 2024 Plugged-In: EV Collision Insights report. This issue provides an overview of the point-of-impact and severity differences between repairable battery electric vehicles (BEVs) and automobiles with an internal combustion engine (ICE).
Citrin Cooperman Advisors acquires Signature Analytics
Citrin Cooperman Advisors LLC, the premier professional services provider for private, middle market businesses and nonprofit organizations, announced that it has entered into an agreement to acquire substantially all the assets of Signature Analytics, a San Diego-based outsourced accounting and advisory firm. Signature Analytics joins Citrin Cooperman with 2 partners and over 65 professionals, expanding Citrin Cooperman’s established presence in Southern California.
Signature Analytics provides flexible, scalable outsourced accounting and advisory services for businesses and nonprofits nation-wide.
