SAN DIEGO (KGTV) — Local restaurants in the Gaslamp are already feeling the squeeze from the latest tariffs, especially those who rely on fresh ingredients from across the border.
At Kaluu on Fifth Avenue, fresh tomatoes from Baja California are a cornerstone of the kitchen. But with the U.S. now placing a 17% tariff on Mexican tomatoes, that staple is suddenly more expensive.
“We get our tomatoes fresh from Baja,” said Kaluu General Manager Kayla Boughton. “My biggest concern looking ahead is how we’re going to keep providing this level of quality as we continue to grow.”
Earlier this week, the Trump administration announced it was withdrawing from a 2019 agreement that suspended tariffs on Mexican tomatoes. With Mexico supplying about 70% of the tomatoes consumed in the U.S., the decision has had an almost immediate impact, especially right here at home.
“It’s a tough balance,” Boughton said. “We run a really tight shift here, and that’s how we make it all come together.”
Despite rising costs on the back end, Boughton says Kaluu is doing everything it can to avoid passing those costs along to customers.
“We aren’t letting it impact our guests or our prices,” she explained. “But we are really seeing it behind the scenes.”
That means getting creative with ingredients and plate presentation — all without sacrificing quality or raising menu prices.
“As we get deeper into tomato season with these tariffs, we’re having to adjust our plates,” she said. “But not in a way that compromises the quality or value of what we’re serving.”
Kaluu's mission remains clear: maintain a high-quality experience, no matter the cost.
“We want to make sure we’re getting quality ingredients — that’s our main goal,” Boughton said. “So we’re just going to have to bite the bill and take some of the hit.”
Still, she’s hopeful that change is possible.
"Hopefully, this changes. Hopefully we can advocate within our community and have our voices — and others’ — heard,” she said. “Because we want to continue providing this level of quality for San Diego.”
As the cost of fresh produce climbs, businesses like Kaluu are standing firm, doing what they can to absorb the hit so customers don’t have to.
