While President Donald Trump has imposed his long-threatened tariffs against Mexico, Canada and China this week, the short- and long-term effects are still unpredictable, according to a local economist.
On Tuesday, Trump imposed 25% tariffs on Mexican and Canadian imports and a heightened 20% levy on Chinese products, according to the Associated Press.
All three countries have announced retaliatory measures in response, the Associated Press reported.
>> What to know about Trump’s tariffs and their impact on businesses and shoppers
Thomas Tunstall, an economist and senior research director for the UTSA Institute for Economic Development, said it’s hard to say whether people will see an immediate impact in their daily lives, but Americans will eventually feel the effects.
“Canada, Mexico and China, for a while, I think they will try to absorb those costs increases, but that will only last for so long, and then after that, we’re going to see a potential uptick in inflation just because they will have to start charging more,” Tunstall said.
>> Trump’s trade war draws swift retaliation with new tariffs from Mexico, Canada and China
Prices will increase across the board, Tunstall said, including everything from produce and food to manufactured goods.
“If the tariffs stay in place, these impacts will hit eventually. It’s possible to hit sooner,” Tunstall said.
Trump has cited an ongoing fentanyl crisis in the U.S. as one of his main reasons for the tariffs.
The White House has already announced changes, including a one-month exemption for some U.S. automakers from the tariffs on Canada and Mexico.
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