Trump's tariff plan could raise prices for these products

During his presidential campaign, Donald Trump proposed imposing higher tariffs on certain countries, including Mexico and China.

Now, as president-elect, the Republican has confirmed that, upon taking office next year, he plans to impose tariffs on all products entering the United States from Mexico, Canada, and China.

“On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders,” Trump said.

Additionally, he stated that the U.S. government would impose an extra 10% tariff on imports from China: “I have had many talks with China about the massive amounts of drugs, in particular Fentanyl, being sent into the United States – But to no avail. Representatives of China told me that they would institute their maximum penalty, that of death, for any drug dealers caught doing this but, unfortunately, they never followed through, and drugs are pouring into our Country, mostly through Mexico, at levels never seen before. Until such time as they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America. Thank you for your attention to this matter” he said.

These measures have drawn significant attention from experts and economists, who warn that Trump’s tariff plan could lead to higher prices for many products, as consumers would ultimately bear the additional costs.

Gas ‘could rise by 30 to 40 cents per gallon’ under Trump

An analysis by Third Way suggests that Trump’s proposed tariffs could drive up the cost of groceries and other essential items. “Because tariffs are regressive taxes, lower-income families would be disproportionately affected. The increased costs would consume a much larger share of a working family’s disposable income compared to that of an affluent family,” the organisation explained.

The analysis estimates that American families could pay at least $185 more annually for groceries, a 3% increase, and an additional $551 on other products at big-box retailers.

Furthermore, Americans might face higher gasoline costs. “For much of the United States, this could be especially burdensome due to rising prices at the pump. Coastal areas may fare slightly better because they’re less reliant on Canadian crude,” said Patrick De Haan, head of oil analysis at GasBuddy, in an interview with CBS MoneyWatch. Gas prices could rise by 30 to 40 cents per gallon.

Regarding the possible increase in tariffs on Chinese imports, the products that could be more expensive are: televisions, headphones, laptops, tablets, video game consoles and smartphones, as well as footwear.

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