Is Trump prepared for the repercussions from tariffs? Are Americans? Here’s what to know

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Is Trump prepared for the repercussions from tariffs Are Americans Here's what to know

President Donald Trump has announced new tariffs on imports from Canada, Mexico, and China, fulfilling his campaign promises but sparking fears of an extended trade war. These tariffs, which take effect on Tuesday, are expected to raise prices, strain relationships with key allies, and impact the U.S. economy.

What Are the New Tariffs?

Trump declared an economic emergency to impose the following tariffs:

  • 25% on imports from Mexico and Canada
  • 10% on imports from China
  • 10% on Canadian energy imports (including oil, natural gas, and electricity)

These tariffs will apply broadly to goods such as:

  • Canada: Oil, lumber, natural gas
  • Mexico: Produce, clothing, liquor, auto parts
  • China: Plastics, textiles, computer chips

Unlike previous tariff measures, Trump’s order does not include exceptions for U.S. importers, meaning all affected goods will face the same duties.

Why Is Trump Imposing These Tariffs?

Trump has long criticized U.S. trade deficits and international trade deals, blaming them for the loss of American manufacturing jobs. However, this time, he’s framing the tariffs as a tool to pressure these countries on immigration and drug control, specifically targeting Mexico and Canada for what he calls their failure to stop the flow of fentanyl and migrants into the U.S.

“It is my duty as president to ensure the safety of all,” Trump stated on social media.

He also warned that if these countries retaliate, the U.S. will escalate the tariffs even further.

How Are Canada, Mexico, and China Responding?

The response from America’s trading partners was swift:

  • Mexico: President Claudia Sheinbaum announced retaliatory tariffs on U.S. goods.
  • Canada: Prime Minister Justin Trudeau imposed matching 25% tariffs on up to $155 billion worth of U.S. imports and encouraged Canadians to “choose Canadian products,” hinting at a possible boycott of American goods. Some Canadian provinces even plan to remove U.S. alcohol brands from government stores.
  • China: While China hasn’t announced new tariffs yet, its Ministry of Foreign Affairs warned of “necessary countermeasures” and plans to file a complaint with the World Trade Organization (WTO).

How Will These Tariffs Affect American Consumers?

Although consumers don’t directly pay tariffs, the added costs on imported goods usually lead to higher prices in stores. Companies involved in transporting goods often pass the extra costs down the supply chain. This means Americans could soon face:

  • Higher grocery bills (due to increased costs of imported produce and food products)
  • Rising gas prices, especially in the Midwest, as Canadian crude oil becomes more expensive
  • Increased costs for everyday items, including clothes, electronics, and cars

Economic Impact Estimates:

  • Inflation: Expected to rise by 0.4 percentage points this year, according to economist Gregory Daco.
  • GDP Growth: The U.S. economy, which grew 2.8% last year, could shrink by 1.5% in 2025 and 2.1% in 2026.
  • Household Costs: The Budget Lab at Yale estimates the tariffs will cost the average American household $1,000 to $1,200 annually in lost purchasing power.

Even products labeled as “Made in the USA” could see price increases since many rely on foreign raw materials or parts that are now subject to tariffs.

What About Trump’s Campaign Promises?

During his 2024 campaign, Trump promised to lower grocery prices immediately and cut utility bills in half within a year. However, he’s now backing off from those claims.

“Will there be some pain? Yes, maybe (and maybe not),” Trump wrote on social media. “But we will make America great again, and it will all be worth the price that must be paid.”

Despite rising costs, Vice President JD Vance claimed in a recent interview that Trump’s policies would still lead to “more take-home pay” for American workers.

Trump’s new tariffs mark a significant shift in U.S. trade policy, with potential long-term effects on the economy, prices, and international relations. While the goal is to protect American interests and pressure other nations on issues like immigration and drug trafficking, the immediate impact will likely be felt in the wallets of everyday Americans. As the situation develops, both consumers and businesses should prepare for potential price increases and market changes in the coming months.

SOURCE

Tom Vander Woude

Tom Vander Woude ('20) is from Grand Rapids, MI, and was a sports contributor to the Wake Forest Review. He covered various athletic events and provided analysis on sports-related topics at Wake Forest University.

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