Latest news with #FranciscoGarcia
CBS News
17-05-2025
- Business
- CBS News
San Francisco small businesses struggle to navigate 90-day tariff pause
SAN FRANCISCO — This week's announcement of a 90-day tariff pause has San Francisco small businesses in flux. Some are seeing some immediate shifts, while others are trying to figure out what to do next. In the wake of Trump's stop-and-go tariff policies, business owners like Edward Lau are confused about what and when to order from Chinese importers as inventory levels dwindle. "You don't know what to do, honestly. You don't know whether this 90-day (pause) is temporary," he said. Customers continuously ask the herbal medicine store operator when prices will stabilize. He readily admits that's above his pay grade. Since March, Lau has raised prices while absorbing other costs to remain competitive with similar stores in San Francisco's Chinatown. "I would say 10-20% at least for some of the products. But for most of the others, we still are at a price that we paid for before the tariff," said Lau. Lau remains anxious, even though tariffs are significantly lower than the previous 145% hike. A decision to purchase too little now could hurt his bottom line if tariffs ramp up again later this year. "Once you sell out, you stock up. The price we are getting is much higher than what we are (currently) selling for," said Lau. Further up the supply chain from Lau, operators of bonded warehouses, where imported goods can be stored without paying duties until they are removed, have seen immediate changes since the tariff pause. Francisco Garcia, the founder of Lynx Logistics, says requests to remove goods have started. Container-tracking software provider Vizion also says U.S. container bookings from China surged nearly 300%, soon after the announcement. But Garcia says many of the larger companies he works with are still asking for long-term bonded storage. "The big players, the big forwarders, the big direct shippers, are actually asking for more space because these next 90 days are very uncertain," said Garcia. Uncertainty for a small player in the supply chain like Lau keeps him twisting in the wind, as he sees the hardship it has created every day. "I see some of the customers getting so frustrated, saying 'I can't afford it,' " said Lau. Even his son has asked whether running a small store is worth it. "He's told me I don't see any future in the United States, even though he was born here. It makes me even more nervous now," said Lau. What is certain is the anxiety Lau is dealing with at the bottom of the supply chain, in the midst of a global trade war. The U.S. lowered its tariffs on Chinese imports from 145% to 30%, while China reduced its tariffs on U.S. goods from 125% to 10%. The agreement is set for 90 days, during which both nations will engage in further trade discussions.
CBS News
09-05-2025
- Business
- CBS News
Fremont bonded warehouse to expand amid tariff-driven business surge
Business is booming for Bay Area company after tariff hikes. Here's why. Business is booming for Bay Area company after tariff hikes. Here's why. Business is booming for Bay Area company after tariff hikes. Here's why. Business is booming for a Bay Area company after the Trump Administration hiked tariffs across the board last month and escalated the trade war with China. One part of the supply chain that typically goes unnoticed has suddenly become extremely valuable in a very different economic climate. Francisco Garcia is the founder of Lynx Logistics, a high-tech security warehouse in Fremont. This fenced-off section, a U.S. Customs and Border Protection Bonded Warehouse, where goods can be stored without paying tariffs until they're taken out, is a hot commodity. "The demand is so high, we just keep expanding," said Garcia. As containers from around the world make their way to ports along the West Coast and are eventually trucked to warehouses, Garcia is in a position to expand its already existing bonded warehouse. "By this time next week, this will be filled to the rim," said Garcia. Forklift operators are quickly moving inventory to make more space for the expansion. Lynx says it has been approved by U.S. customs to triple its bonded space to 15,000 square feet. "We're installing new racks. We're going to quadruple-stack U.S. Customs bonded pallets," said Garcia. Importers typically use bonded warehouses to bring in goods from one country before shipping them to another country, without paying tariffs. But the current trade environment is changing the way these spaces are now being used. Shane Salazar is CEO of Lynx Logistics "This is allowing companies to stretch their cash in terms of not paying for the entire shipment at entry to U.S. Customs and pay as they touch it down to take a carton or a pallet," said Salazar. Industrial property broker Danny Reaume of JLL, a commercial real estate and investment management company, says inquiries for bonded spaces went from 1-to-2 calls in a typical 30-day period, to well over 100 after Trump's so-called Liberation Day tariff announcement. "Everybody across the supply chain is trying to get their inventory here, into the United States, into the West Coast market, and shield them from these tariffs, in the anticipation that in the next 30 to 90 days, this will get figured out," said Reaume. Until that happens, Garcia and his team are hard at work. "It's busy times on the phone and email. It's very little sleep lately," said Garcia. It's an unanticipated business opportunity for an expanding company like his. Bonded facilities have to meet specific security requirements of U.S. Customs and Border Protection. Costs to operate are higher, including paying customs bond premiums. Reaume says the market for non-bonded warehouse space is extremely quiet as shipments to U.S. ports have dramatically decreased. But companies that need inventory close by are pouncing at any bonded space that's available.
