International Grocer in New Hope Braces for Tariff Impact
On Thursday, President Donald Trump postponed his 25 percent tariff on most goods from Mexico and Canada. The tax is still set to hit in a month, on April 2.
Once the tariff on Mexico goes into effect, stores that specialize in selling foods from across the border could be hit. La Picante Market in New Hope is one of them. It offers food imported from Mexico and African countries.
“We try to have a specialty in food here, different from other people,” owner Mahmoud Habib explained.
Habib said his shop’s been in place since the late 90s. It fills a much-needed niche in New Hope, selling American foods as well as 80 percent imported goods. Habib said probably 60 percent is from Mexico, particularly the produce, like cacti, avocados and peppers.
The market also has an eatery with Mexican and American food cooked-to-order, a relatively new part of their business.
“Serving the community. So whatever they’re looking for, we’ve got for them,” Habib said.
Habib said much of the product his store sells is based on what the community asks for. But tariffs set to take effect in a month, on April 2, could bring some costs up for his consumers.
Owner Mahmoud Habib said he’s prioritizing keeping costs low for his customers, even with the possibility of tariffs come April.
What is a tariff?
George John, a marketing professor for the University of Minnesota, said a tariff is a tax or customs duty placed on an imported product. For example, the United States has a longstanding 25 percent tariff on imported light trucks, established back in 1964.
John said typically tariffs are imposed to protect domestic industries. This case is different. John said these particular tariffs are designed to stop the perceived smuggling of people and drugs like fentanyl.
“It’s more of a non-economic reason for doing it. But, it’s an economic tool that our government is using to try and shape the relationship between us and these countries,” John explained.
While the importer pays the tariff, those costs eventually get passed on to the consumer. John said tariff effects show up in different ways. In some products, like Mexican Coca-Cola or Sprite, consumers won’t see much of a difference.
“The bigger shift is going to come in the commodity-style products, the unbranded products,” John said.
Unbranded products often include produce, like green bell peppers or avocados. Habib’s store sells cactus leaves, which could also be impacted.
A carton full of cactus leaves is available for purchase at La Picante. That’s one of many Mexican-imported items the store sells.
Future impacts
Though tariffs won’t hit customers directly, Habib acknowledges it is likely they’ll feel the effects in some parts of their grocery bill. He wants to assure them, though, that he tries his best to mitigate the prices.
“I’m always looking for whoever can provide the stuff for me with the cheaper price. So when the prices are up, it’s not in my hand. I’m forced into it,” Habib said.
He’s noticed costs going up and sales going down since 2023 for varying reasons.
“It’s the same situation as when Joe Biden made minimum wages higher. It affected the people. Everything is more expensive– it’s not helping the people to live better,” Habib said.
He hopes his customers will stay loyal as he fights for lower costs on his end, just as they’ve stayed loyal to keep him in business for over 20 years.
“I try to provide everything for the community as much as we can,” Habib said.
La Picante Market is located on 7914 Bass Lake Road in New Hope, right next to the New Hope Village Golf Course.
A sampling from the produce section at La Picante.
Related: Local Manufacturers Expect Prices To Rise with Tariffs
