While tariffs have been delayed for a month in the case of Mexico, here’s what tariffs on Mexico, Canada and China mean for your money.
Transcript:
Conway Gittens: President Trump is making good on his promise to slap tariffs on $1.4 trillion worth of goods made in Mexico, Canada, and China. Products shipped from Mexico will see a 25 percent import tax, Canadian goods, except for energy products, will see a similar amount, while Chinese goods will be hit with an additional 10 percent tariff. These are all expected to kick in as of February 3rd.
The President is warning that Americans will feel a little short-term pain – but what he left out is that pain comes on top of the steepest spike in inflation felt this generation.
The grocery store is likely to be the first place where most Americans feel the impact. I’m talking $46 billion worth of food items from Mexico alone. I’m talking $46 billion worth of food items from Mexico alon. 20 percent of our fresh fruits and vegetables come from our southern neighbor. And it’s not just avocados. Alcoholic beverages are also on the tariff hit list. I’m talking beer, tequila, and of course, mezcal.
Your next new car is likely to be at least $3,000 more expensive, according to some estimates. You might think because your automobile is made in the USA, you’ll be immune, but even cars assembled within the border have dozens of parts made in Mexico and Canada.
Anything you have to replace that has steel in it will face higher tariffs, since Canada and Mexico will no longer be exempt from global steel tariffs.
Home prices, which are already at or near record highs, will be impacted. 30 percent of the type of lumber used to build homes comes from our Canadian neighbors, while 71 percent of materials used within drywall are imported from Mexico.
That’s just the impact of Mexico and Canadian tariffs. Chinese products are even more abundant inside and outside our homes – ranging from the things we cook and eat with, what we wear on our feet and backs, and what our kids play with.
Wall Street is in an uproar as the Trump Trade War 2.0 begins. Stocks are down sharply across the board in Monday action.
From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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