Emerald Packaging Inc., a California company that makes plastic packaging for produce, is grappling with new tariffs imposed by the Trump administration.

The Union City, Calif.-based company, which annual revenue of $90 million and 250 employees, specializes in producing plastic bags and rolls for agriculture companies and supermarkets.

Emerald must pay new tariffs on the plastic materials it imports from countries such as India, Brazil and Mexico. It buys most of its printing machines from Germany, which is subject to a 15 percent tariff.

CEO Kevin Kelly said the company was planning to purchase a new printer from Germany this year, but has decided not to buy the $3 million machine because it will cost 15 percent more.

The company has halted its plans to hire more employees because of higher expenses and uncertainty linked to the tariffs.

Kelly says the company operates on slim profit margins will pass along the cost of the tariffs to its customers. He believes supermarket shoppers will see higher prices for produce later this year due to tariffs and deportation of farmworkers.