Torch-bearing white supremacists in Charlottesville, Aug. 11, 2017, cited President Trump as the inspiration for their “Unite the Right” rally (Photo: Edu Bayer/The New York Times)
On November 25, Trump said that as soon as he’s inaugurated on January 20, 2025 he will institute a new 25% tariff on all goods coming into the U.S. from Mexico and Canada, plus an additional 10% tariff on goods from China.
So look out. Your cost of living is about to get a huge increase.
Trump is either willfully ignorant about how tariffs work, or is lying to Americans about it by repeatedly asserting that other countries will pay the tariffs, and not Americans.
Economists and tax experts all say that’s completely wrong.
Tariffs are a tax paid to the U.S. government on goods imported to the U.S., and they are paid by American companies that import the goods. The countries that export the goods to the U.S. don’t pay a thing. Companies pass the cost of the tariffs on to consumers by raising the prices of their imported goods, so Americans pay the cost of tariffs, not foreign countries.
So get ready for big increases in the cost of beer, food, cars, appliances, electronics, metal, plastics, car parts, gas, cement and lots, lots more under Trump’s policies
The U.S. imports auto parts, medical equipment, electronics and lots of fresh foods and household goods from Mexico. Trump’s tariffs will increase prices by 25% on fresh fruits, vegetables and nuts from Mexico, like tomatoes, berries, asparagus, broccoli, watermelons, avocados, piñon nuts, pecans, walnuts and pistachios. Also expect a 25% increase in the price of Corona, dos Equis and Modelo beer. You’ll see a similar jump in the cost of gas, because Mexico exports most of its petroleum to the U.S., and brace for a significant increase in the cost of electronics, like tablets, computers, monitors, cell phones, and household appliances like washers, dryers, toasters, refrigerators and air conditioners. Expect even bigger increases in the price of iPhones and iPhone accessories, since they are made in China.
Trump garden flag for sale
Our top import from Canada is crude oil, so expect a jump in the cost of fuel from that direction, too. The U.S. also imports mineral products, lime and cement from Canada, so expect the cost of cement to jump if you are planning to install a new concrete walkway or repair a cracked concrete driveway at your house. The U.S. imports $17.2 billion in wood products from Canada, like cork and hardwood flooring, and we get leather goods, plastic and steel from Canada. In 2023 the U.S. imported $8.36 billion worth of iron and steel from Canada, so the prices on iron and steel will rise, too, so even if builders turn to using steel instead of wood to frame new buildings, it’s going to cost a lot more to build, which will add to unaffordable housing and exacerbate the country’s housing crisis.
American consumers will be paying Trump’s tariffs, which is why Kamala Harris called his tariff proposals a “Trump tax.”
Companies will also take advantage of government actions, like the levying of additional tariffs or taxes on products, to throw an additional price increase of their own on products, so they can pocket even more money and come out even better under the guise of blaming it all on the administration.
So if you thought inflation was bad under President Biden, get ready because it’s about to get a whole lot worse under Trump.
A quote Donald Trump made about women in a 1992 New York magazine interview.
