By: Hannah Brandt
WASHINGTON (NEXSTAR) — – President Donald Trump is threatening to impose tariffs on the United States’ largest trading partners starting next week, sparking fears about the impacts that could have for American consumers.
The president says the plan is to impose 25% tariffs on imports from Canada and Mexico starting on March 4 and to double the 10% tariffs on imports from China.
He says the tariffs are being put into place because those countries aren’t doing enough to prevent illegal drug trafficking.
“The drugs continue to pour into our country, killing hundreds of thousands of people,” Trump said.
Democrats are slamming the tariff plan. Sen. Tim Kaine (D-Va.) says it will hurt Americans.
“Some people voted for Donald Trump because he said he was going to take care of inflation. It’s been the opposite,” Kaine said. “Housing materials have gone up in price, groceries have gone up in price. Energy is going up in price. And these tariffs will make it worse.”
Canada and Mexico trade hundreds of billions of dollars of goods with the U.S. every year.
George Washington University business professor Rodney Lake says the price of tariffs will probably be passed on to shoppers.
“In the short term you’re likely to see higher prices,” Lake said.
Lake predicts that some people will feel the impacts of tariffs more than others.
“Lumber is an example: you’re building a house. You’re much more likely to feel it there than somebody that’s not using these products,” Lake said.
So, he says consumers shouldn’t be too concerned.
“I don’t think people should be overly worried about this. I do think people should have some confidence in American business.” Lake said.
In the longer term he believes businesses will adjust.
“Supply chains rearrange themselves. Businesses do not remain still. They change, they figure out where can we get other things,” Lake said.
President Trump could reverse course. Earlier this month, he paused his tariff plan at the last minute after talking to the leaders of Mexico and Canada.
