US President Donald Trump’s recently imposed 25% tariff on goods from Canada and Mexico, along with the heightened 20% levy on Chinese goods, is expected to significantly impact US businesses and consumers.
Businesses will have little choice but to increase prices on a variety of products whose supply chains are linked to these countries. This includes big-ticket items like cars, appliances, as well as everyday purchases such as electronics, gasoline, and groceries.
Industry experts warn that international trade is crucial for many businesses, particularly those in the consumer electronics sector, which relies heavily on global supply chains. Companies like Best Buy and Target expect meaningful pressure on profits due to the tariffs and other costs.
The US also imports billions of dollars’ worth of fruits and vegetables from Mexico and Canada each year, making it likely that consumers will see sticker shock in the grocery aisle. Additionally, products such as tequila, mezcal, whiskey, and other spirits made in these countries may become more expensive.
It’s unclear when prices will rise, but perishables are likely to be affected first. Meanwhile, China is imposing tariffs of up to 15% on US farm exports, including chicken, pork, soy, and beef, as well as increasing export controls and restrictions on numerous US companies.
Canada and Mexico have also declared retaliatory taxes on many US products, with Canada planning to impose over $100 billion in tariffs on American goods within 21 days.
Source: https://www.hindustantimes.com/business/how-will-trumps-tariffs-impacts-us-businesses-consumers-experts-explain-101741154525938.html