SHOPPERS are being warned prices for certain products may rise in coming weeks under proposed tariffs on Canada, China, and Mexico by Donald Trump’s White House.
Tariffs being threatened by President Trump – including a 25% tariff on Mexico and Canada and a 10% tariff on China – could be disastrous for consumers who could be forced to pay more for their favorite products, experts told The U.S. Sun.
A trade war erupted over the weekend after Trump signed an executive order allowing the tariffs to take effect on Tuesday.
Northern American allies retaliated, with Canada responding by imposing a 25% tariff on more than $100 billion of US goods.
China also vowed to sue the US through the World Trade Organization and take “necessary countermeasures to defend its legitimate rights and interests.”
Trump is following through on his election promise with the tariffs part of a pledge to crack down on immigration and drug trafficking.
Economic expert Aleksandar Tomic said shoppers should expect a range of goods to rise if the tariffs are actually implemented.
Tomic, who is Boston College’s Associate Dean for Strategy, Innovation and Technology, said shortages would occur if a price control is not implemented along with the tariffs.
“Yes everything will be more expensive, like Mexican beer, avocados, mangoes, every day grocery items and different agricultural products.
“Cars will also rise in price, because certain parts can cost more than multiple times if they come from Canada, then are built back in the US.
“Fuel may rise as well to some degree, especially in the short term because you will not be able to replace Canadian oil.”
Tomic said the price of imports from Canada and Mexico would rise more than goods from China, with tariffs significantly less on goods from Asia.
But Tomic said Trump may not actually follow through with the tariffs, after the policy was put on hold following talks between the US President and Mexican leader.
“It is interesting to watch and I wonder whether he will start walking some of these tariffs back, or give exemptions to certain countries.
“There is still a lot of uncertainty about how and why and if they will be implemented.”
FRESH GOODS ‘HIGHLY VULNERABLE’
Manufacturing expert Madhav Durbha agreed, warning a variety of consumer products would be impacted by tariffs.
Durbha, who is a group vice president at RELEX, said fresh produce would be impacted including avocados and mangoes were “highly vulnerable” to tariffs.
“Items like avocados, mangoes, and other fresh produce heavily sourced from Mexico are highly vulnerable to tariffs,” he told The U.S. Sun.
“Geographic and environmental constraints make it difficult to shift production, and these tariffs would directly translate into higher prices for consumers at grocery stores.”
He added that everyday medications could also be affected, with the US relying heavily on China for pharmaceutical ingredients critical to drug production.
“Tariffs on these imports could increase drug costs for consumers and disrupt supply chains, creating ripple effects across the healthcare industry.”
ELECTRONICS ‘AT RISK’
The manufacturing expert also noted consumer electronics such as smartphones and laptops were also at risk.
“Many manufacturers, such as Apple, have already started diversifying production to countries like India and Vietnam, but the transition isn’t complete.
“Tariffs on imports from China could still lead to price increases or delays in product availability.”
“Broadly speaking, higher tariffs will increase import costs, forcing companies to choose between absorbing the hit to their margins or passing it on to consumers.
“Either way, this creates inflationary pressure and dampens consumer spending, impacting not only individual companies but the broader market.”
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