The Trump administration is reiterating plans to impose 25% tariffs on all products from Canada and Mexico starting February 1st. Experts warn these tariffs could significantly increase prices for consumers on a wide range of goods, from gasoline and groceries to avocados and automobiles. The move could also impact the U.S. economy as Canada and Mexico are two of the largest U.S. trading partners. While the White House touts the potential benefits of tariffs, the potential economic fallout remains a major concern.
The Trump administration this week reiterated plans to slap 25% tariffs on all products from Canada and Mexico on Feb. 1.and Canada that are set to take effect could hike the price of a gallon of gasoline for some drivers by as much as 70 cents and send grocery bills climbing, experts told ABC News.
The price impact remains unclear, however, since businesses within the supply chain could opt to take on some or all of the tax burden, some experts added, noting the tariffs may not take effect at all since Trump has previously used them as a source of leverage in international negotiations. Those imports come primarily from Canada, which sends crude oil to U.S. refineries built specifically to process the crude and redistribute it as car-ready gasoline, Timothy Fitzgerald, a professor of business economics at the University of Tennessee who studies the petroleum industry, told ABC News.
The tariff-related price increase may combine with a seasonal price hike set to take effect within weeks, since demand for gas typically grows as travel picks up in the warmer spring weather, experts said.
TARIFFS CANADA MEXICO TRUMP ADMINISTRATION TRADE WAR ECONOMY CONSUMER PRICES GASOLINE GROCERIES AUTOMOTIVE INDUSTRY
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