The Trump administration’s proposed tariffs on Canada, Mexico, and China could negatively impact your wallet.
Transcript:
Conway Gittens: Inflation is on the mind of Wall Street Wednesday. The Federal Reserve’s preferred inflation gauge – the Personal Consumption Expenditures Index – came in hot for October. Prices were up 0.2 percent for the month and 2.3 percent from a year ago.
In other news, when it comes to Donald Trump’s planned across-the-board 25 percent tariff hike, the prevailing wisdom among economists is that the biggest loser will be: you, the consumer.
Autos are sure to get more expensive. The auto industry uses a complex supply chain with multiple car parts passing through the U.S., Canada, and Mexico multiple times. Automobile and automobile parts are Mexico’s two biggest exports to the U.S.
Climate change means we now get 20 percent of all of our fruits and vegetables from our southern neighbor. All of you avocado lovers – expect to get hit hard in your wallet if the tariffs go through.
Alcoholic beverages are also on the tariff hit list. I’m talking beer, tequila, and of course, mezcal.
Turning to our neighbor to the North, Canada’s main export to the U.S. is a specific type of crude oil, which is used at U.S. refineries to produce gasoline and heating oil. Gasbuddy predicts prices could go up by 25 cents to 75 cents a gallon, especially on the West Coast and in the Midwest.
Throw in additional tariffs on Chinese-made goods, and Brendan Duke of Center for American Progress told USA Today, the typical American family will get hit with a price hike of $1300 a year.
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