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Discuss Local Business Climate and Potential Impact Tariffs May have on Local Business Sectors
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To: Members of the Mayor’s Economic Development Advisory Panel
EXECUTIVE SUMMARY
The federal government recently imposed significant tariffs on imported goods from multiple countries in an effort to reduce the U.S. trade deficit. In addition, some countries have imposed similar tariffs on U.S. exports, affecting demand for locally produced products.
This agenda item is presented for discussion purposes only, to understand possible implications for Alameda-based businesses. Many local commercial, research and development, and retail business sectors are reliant on supply chains involving export and import with foreign countries.
BACKGROUND
City staff recently attended a 2025 Economic Outlook, sponsored by the East Bay Economic Development Alliance (East Bay EDA), which included an extensive discussion on tariffs and their effects on the regional economy. Attached are copies of the presentations made by:
• Abby Snay, Deputy Secretary, Workforce Strategy, for the State of California‘s Labor & Workforce Development Agency; and
• Alexander Quinn, Senior Director, Northern California Research, JLL.
City staff also recently attended a webinar sponsored by SCORE: “How Tariffs Can Impact Your Business & How to Prepare.” SCORE (Service Corps of Retired Executives) is a non-profit organization that provides free business mentoring and educational resources to small businesses across the United States. They are a resource partner of the U.S. Small Business Administration (SBA). The local SCORE office provided invaluable webinars and individual assistance to local businesses during the pandemic.
DISCUSSION
City staff have been hearing anecdotally how tariffs may potentially impact local restaurants, retailers, and other small businesses, such as with supply chain disruptions, pricing, or with other related economic uncertainties.
At the recent 2025 Economic Outlook, the keynote speakers discussed general trends in the regional economy (see exhibits 1 and 2). Ms. Snay noted a declining workforce population, which is mitigated by immigration, older workers working longer, and remote work enabling more people with disabilities to enter the workforce. She stressed the importance of “skill-based hiring” rather than requiring four-year college degrees or other work requirements that restrict access to the workforce.
Regarding tariffs and trade imbalances, Mr. Quinn mentioned that there is normally a five-year interval between formalization of new trade agreements and implementation. Therefore, it may take time to see benefits from new agreements, with an interim period of uncertainty. He also pointed out that the significant amount of Venture Capital investment in the Bay Area is predominantly in artificial intelligence-related enterprises.
During the question-and-answer period, there was a brief discussion on the following three factors business site selection: 1) talented and skilled workforce availability; 2) affordable land or lease rates; and 3) the certainty and/or length of the local permitting process. Permitting is particularly important for high tech companies concerned about “speed to market.” The City of Alameda has an “At Your Service” concierge permit assistance program to help individually guide large projects through the approval process.
The recent SCORE webinar focused on the effects tariffs may have on small businesses and how to prepare for them (see exhibit 3). The webinar explored various strategies businesses can adopt, such as diversifying supply chains, considering domestic sourcing, improving operational efficiency, or adjusting pricing. The City promoted the webinar through the West Alameda Business Association, the Downtown Alameda Business Association, and the Alameda Chamber & Economic Alliance.
This item is for discussion purposes only. Staff are interested in learning more about the current economic climate for different local business sectors.
RECOMMENDATION
This item is for discussion purposes only. No action is recommended.
Respectfully submitted by,
Eric Fonstein,
Development Manager
Exhibits:
1. “Education and Workforce for a California For All,” presentation by Abby Snay, May 15, 2025.
2. “East Bay Rebound: Who, What, Where?” presentation by Alexander Quinn, May 15, 2025.
3. “How Tariffs Can Impact Your Business and How to Prepare.” Presentation by Steve Strauss, May 20, 2025.