Update on the Tariffs and their Impact on Washington

US President Donald Trump recently imposed tariffs on goods entering the United States. The president hopes the price hikes will encourage Americans to buy more US products. The White House expects tariffs to raise billions of dollars in revenue, which could be used to balance the federal budget.

North America is bracing for the upcoming April 2nd announcement

Trump himself will ultimately determine the contents of the April 2 announcement, which he has touted as "Liberation Day" for the U.S. economy. The action aims to shrink a $1.2 trillion global goods trade deficit by raising U.S. tariffs to levels charged by other countries and counteracting their non-tariff trade barriers. -Reuters

 

Here come the price increases for certain products 

The recent tariff hikes are being applied to steel and aluminum imported to America, products from Mexico, and items from Canada and China. These tariff escalations have prompted swift countermeasures between these nations and the European Union.

That’s put the squeeze on retailers like Walmart, which imports a lot of merchandise from China and sells those goods at the lowest price possible to American consumers.  - CNN

 

Experts say the U.S. tariffs could raise prices for American consumers. 

Since the tax is paid by the domestic company importing the goods, they may choose to pass the cost onto customers or reduce imports, leading to fewer products being available. After the tariffs were announced, companies like Target and Best Buy warned customers to expect higher prices on many items.

Which items could see a price increase?

The counter-tariffs mentioned above, initiated by the European Union, Mexico, and Canada, will lead to a price increase for the following products:

Strawberries

I recently discovered that most strawberries consumed in America come from Mexico. The Mexican tariffs will increase the price of this delicious fruit.

Avocados

Sliced avocados and guacamole are tasty on their own, alongside sandwiches, or as a complement to other dishes. However, their prices are about to rise. 

Tomatoes

We receive a good supply of red, plump tomatoes from Mexico. Restaurants and drive-in burger shops that use these tomatoes will encounter price increases for items that feature them as toppings.

Fresh Produce

U.S. grocery stores source a substantial portion of their fruits and vegetables from Canada and Mexico, and prices will increase.

Beer

An odd fact: Modelo is the most consumed beer in America. The price of this popular Mexican beer will increase.

Tequila

Oh no, the price of Mexican-made tequila will be rising. Stocking up at the liquor store before prices increase is a good idea. 

Meat

Much of the meat consumed in America is imported from north of the border. Expect to pay more for steak or burgers produced in Canada.

Grain

Canadian grain is used in many products, including pasta, baked goods, oatmeal, and granola bars. Anything involving grains from up north will cost more.

Maple Syrup

Bracing for a future price increase, I recently bought three containers of Canadian-produced Kirkland Brand maple syrup from Costco. Maple syrup producers from New Hampshire and Vermont may become the new suppliers of the popular Kirkland Brand.

Eggs

Due to America's bird flu and egg crisis, prices are expected to rise further. A significant portion of chicken feed and other ingredients necessary for egg production are imported from Canada.