Trump’s tariffs on Mexico and Canada will increase prices for consumers

President Donald Trump The statement on tariffs in Mexico and Canada, although at least one month is delayed, can stimulate the rise of prices paid by consumers for the goods affecting tariffs if they are finally implemented.

The latter, the last weekend announced that 25% tariffs, which are taxes imported, will enter into force on Canadian and Mexican products, as well as the lower 10% tariff for Canadian energy products. Canada and Mexico threaten the response tariffs in response to Trump’s tariff plans.

The President reached an agreement with Canada and Mexico to postpone tariffs at least a month later, when the two countries have announced funds on Fenthanal smuggling and illegal immigration.

Whereas Tariffs in Canada and Mexico From time to time, they are taking place in the future their possible implementation is missing that American consumers can have higher prices for certain products if they eventually come into force.

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President Trump has collected tariffs as a negotiating tool and a source of tax revenues. (Photo: Chip Somodevilla / Getty Images / Getty Images)

“Assuming the next month, or thus, the tariffs for Mexico and Canada enter into force, you will see that prices are higher than many products, Dan Savicas, a business in the defense of taxpayers.

Scott Lincicome, CATO Institute, the VP of General Economics and Trade Policy in an interview with the fox business said that “the three great areas of potential Consumer pain would be food, energy and car. “

“We import a ton of fresh seasonal products on food, as well as beer … meat and some other things from Mexico,” he explained. “These are spoiling items that you can’t store and in the case of avocado, there are no corresponding replacements in the United States or abroad. The tariff, say, Mexican avocado just went to the consumer. There is no other place to go. “

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Avocados are in products from Mexico who can see prices if tariffs come into force. (Camilo Freedman / Bloomberg Via Getty Images / Getty Images)

Linkica explained that Auto Industry: It is more complicated with suppliers and products and products that contain North America’s automaked network.

“You Apply tariffs About these things and you effectively ensure that a variety of significant costs of car producers in all three countries is, and the question is to what extent the “Lincik” is talking about a new car and again. that manufacturers can absorb, of course, to make fewer investments and work.

“We import so much raw oil It is a type of crude oil from Canada, which we don’t really do in the United States is heavy raw. Some recycling factories, in particular, are designed for this type of rough cultivation, and they really can’t process the light rough, which makes the United States cheap. “

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Tariffs related to North American cars can lead to higher car prices. (Michael Tercha / Chicago Tribune / Tribune News Service Via Getty Images / Getty Images)

Lincicome will probably have some price increase devices such as washing machines, dishwashers and air conditioners made in three countries.

Other products that Savikas have noted due to tariffs.

Brandon’s Zohns, the Economist of Pepperdine University’s Graziadio Business, told Fox Business that his research suggested Consumer Price Index (CPI)The popular inflation gauge can increase by 1.3 percentage points if the tariffs are implemented.

In view of this CPI was 2.9% in DecemberIt can push inflation above 4% – a level that doubles the target of the Federal Reserve. Parsons mentioned that for the middle household, the 1.3% increase in CPI will probably increase costs by about $ 1,000, and these costs can rise relatively quickly.

“Assuming that these tariffs are going through a month, I expected the prices of food to grow relatively soon,” Parsons explained. “Some products like avocado, it can be a few weeks, perhaps even more in other cases.”

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Gas prices can rise if tariffs are imposed on the import of Canadian crude oil. (Sven Hoppe / Picture Alliance Via Getty Images / Getty Images)

In terms of energy prices, Parsons mentioned that his research showed that Gas prices Could climb 70 cents from Canadian raw oil tariffs, even at a lower tariff over 10%. He added that the vengeance between the United States and Canada could push that growth even higher.

Senior Tax Economist Alex Danten, – says Fox Business – Since these tariffs target wider types of products, such as agriculture will conduct less adjustment settings. “

Durante added that the United States may be seen as a less reliable trading partner in the future, taking into account the tariff threats against Canada and Mexico, two of the two major America trading partners. US-Mexican-Canada Agreement: (USMCA) that wins over its first term.

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“The United States is also facing the further reliability of losing, because when we signed USMCA, some of it have a commitment to the agreement,” he explained. “Thus, in general, not only our economy will be worse due to tariffs, but I think it will be more difficult to negotiate over free trade agreements in the future.