SAN ANTONIO – President Donald Trump’s tariffs on Canada, Mexico and China will go into effect this Saturday.
So, what does that mean?
A tariff is a tax placed on a country’s imported and exported goods, which President Trump has vowed to impose on goods from Mexico for months.
Tariffs imposed on Feb. 1 will be 25% on imported goods from Canada and Mexico and 10% on imported goods from China.
Trinity University economics department chair Dr. David Macpherson said tariffs on this scale have not been implemented since the Great Depression.
“The consumer will bear the burden of this tax,” Macpherson said. “The distributor is physically paying the tax to the U.S. government, but the distributor is going to hike the cost to the consumer. It’s going to pass that tax on to consumers, in terms of higher prices.”
Macpherson said this will impact agricultural products and berries from Mexico and auto parts from Mexico and Canada. Additionally, clothing fabrics from China will be affected.
“You have to go back many decades to the Great Depression to find tariffs this high,” Macpherson said. “I think it’s got to be one of the craziest ideas that (President) Trump has.”
While many products that could be impacted at the consumer-level prices are everyday items, Jamie Gonzalez with River City Produce and Chicho Boys said it will take time.
“The change that could possibly happen to your fresh produce, it does not happen overnight,” Gonzalez said. ”You will not wake up tomorrow, and your limes (will) be $5.”
As prices fluctuate over time, Gonzalez shared a tip to keep your grocery bill low.
“Think about what’s in season, continue to shop for in-season,” Gonzalez said. ”Continue to look for local because the produce that should be here in January or February (because) those prices will remain stable much longer.”