The tariffs on all goods from Mexico and Canada have a new implementation date again — they will now take effect on April 2, after being paused by President Donald Trump.
President Trump proposed 25% tariffs on imported goods from our northern and southern borders on February 1.
“There could be some short-term disturbance, but long-term it’s going to make our country a fortune,” Trump said.
Those were supposed to start last Tuesday, instead, Trump put on another pause.
We asked Paul Brahim with the Financial Planning Association what this pause could mean.
“There’s certainly the possibility that the negotiation the administration seeks gets resolution, and that the tariffs aren’t enacted or not enacted as harshly as they appear right now,” Brahim said.
Meanwhile, China put new retaliatory tariffs on US agricultural products like beef, poultry, and wheat.
Ontario also added a 25% surcharge on electricity exports to Minnesota, Michigan, and New York.
In response to those energy tariffs, Trump posted this morning that he is putting a 50% tariff on steel and aluminum from Canada, fueling the trade war between the North American countries.
“Well they become a consumption tax, right? It gets passed through eventually to consumers, and we see that inflationary effect on prices... so stuff will cost us more, and the government will collect that money,” Brahim said.
This has people like Bellevue resident Wei Wu worried about what’s to come.
“I don’t think it’s a good idea, I think it will hurt Canada, Mexico, and China but it will also hurt America,” Wu said.
But Trump says even with the potential economic hit, people will adjust.
“I think the tariffs are going to be the greatest thing we’ve ever done as a country,” Trump said.
And as far as when could we see the Mexican and Canadian tariffs impact the cost of goods?
“We’ve learned that things that occur in our economy take a period of time to trickle through, so it could be anywhere from a few to 18 months before the impact hits,” Brahim said.
The stock market is another victim of the latest trade war uncertainty, opening in the red again Tuesday as talks of a recession are not ruled out by White House officials.
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