Trump's tariffs on Mexican and Canadian imports loom large for Tuesday
Trumps tariffs take effect on Tuesday
President Donald Trump said Monday that 25% taxes on imports from Mexico and Canada would start Tuesday, sparking renewed fears of a North American trade war that already showed signs of pushing up inflation and hindering growth.
OAKLAND, Calif. - President Donald Trump said Monday that 25% taxes on imports from Mexico and Canada would start Tuesday, sparking renewed fears of a North American trade war that already showed signs of pushing up inflation and hindering growth.
Though Mexico's President is hopeful a final deal can be made to reduce or eliminate Trump's threatened tariffs against her country and Canada, the clock keeps ticking toward tomorrow's implementation.
FILE ART- Port of Oakland.
With tariffs, you never know what you're going to get or get back. But, President Trump minced no words: "No room left for Mexico or Canada. The tariffs, they’re all set. They go into effect tomorrow. The United States has been a laughingstock for years and years."
The backstory:
Mexico and Canada make up a quarter of all U.S. imports. All widely sold across the nation as finished products or parts of them. All can be subject to coming tariffs. "I think that they're a great unknown. I think we will find out soon that this is kind of a dangerous game we're playing," said retiree Doug Litke, who did a lot of work in importing and exporting.
Canada's top exports to the U.S. are fuels, vehicles, and vehicle parts. Mexico's top exports to the U.S. are vehicles, machines, electrical goods, medical equipment and fuels. "We might very well experience higher prices than we are right now," said Litke.
Like it or not, tariffs can reduce or eliminate foreign competition and their check on domestic prices. "They will frequently raise prices because they have nobody that will say I can undercut them, or I can charge what I choose to want," said grocery shopper William Ritchie.
About 15% of the food supply in the United States is imported and increasing. Imported cheeses are about 11% of the U.S. supply. The U.S. imported about 12% of its beef. As much as 80% of the nation's seafood is imported.
Research shows that for every $100 a grocery store charges, it makes just 3% or $3. Tariffs could easily turn profits into losses.
Beyond tariffs, consider this: That three-dollar profit for $100 can be wiped out if somebody simply walks in and shoplifts this $3 can of soup. And, if they add this block of cheese, it's now no profit and a $6 loss.
Other nations may retaliate with their own tariffs? Canada imports 17.5% of all U.S. exports. Mexico imports 16.6% of all U.S. exports. Together that's more than a third of all U.S. exports.
"It seems as though we're not treating them as friends anymore and there may be some intended consequences," said Litke.
That might include potential hostilities towards American tourists and business people abroad.
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