President Donald Trump is hitting the United States’ three biggest trading partners with sweeping tariffs. And they are hitting back, imposing tariffs of their own.
It is an enormous economic gamble, and it has the potential to undermine what people care about the most, the economy.
Here’s what could get more expensive: Among the common Mexican imports that will now get pricier to bring into the country are fruits, vegetables, beer, liquor and electronics.
From Canada, potatoes, grains, lumber and steel will be affected.
That would compound already high grocery prices, which are up 28% over the last five years, according to the Bureau of Labor Statistics.
With deeply intertwined automotive supply chains between the three countries, cars and auto parts are likely to get pricier to bring into the U.S.
Tariffs would likely make the cost of parts like oil filters more expensive, making even routine fixes costlier for consumers.
Karl Schamotta, Chief Market Strategist for Corpay Cross Border, joined us on The Morning Show to explain the fallout of the tariffs.
Trump said, “Tariffs don’t cause inflation,” claiming “they cause success.”
The president said he hopes Americans will understand why he is imposing them, but Schamotta doesn’t think they will.