Impact of New Tariffs on Imports from Mexico, Canada, and China

Tariffs of 25% imposed by the Trump administration on imports from Mexico, Canada, and China are raising concerns over possible price increases for consumers and businesses. Experts foresee higher costs for food and raw materials, with consumers ultimately paying the price. Companies like McKee Foods express apprehension regarding ingredient sourcing and potential impacts on pricing. The duration of the tariffs is still uncertain.

The recent tariffs imposed by the Trump administration on imports from Mexico, Canada, and China have raised concerns regarding their impact on American consumers and businesses. A notable increase of 25% tariffs is anticipated to result in higher prices for various products, particularly food and raw materials.

President Trump engaged with leaders of major automakers, emphasizing the intention behind the tariffs to enhance American wealth. During a Congressional address, he stated, “Tariffs are about making America rich again and making America great again, and it’s happening rather quickly.”

Experts like Dr. Howard Wall from the University of Tennessee at Chattanooga caution that consumers should be prepared for increased prices, especially on foods and essential materials sourced from Mexico and Canada. He remarked, “Imports from Mexico—you’ll see a lot of increase in prices of foods… a lot of steel from Canada, a lot of aluminum, a lot of lumber.”

Dr. Wall further indicated that the financial burden of the tariffs will likely fall on American consumers, as businesses inevitably pass on increased costs. He noted, “Whether you’re a consumer as a business person, or as a consumer in your household, you’re going to see higher prices.”

McKee Foods, known for manufacturing Little Debbie snacks, is among the local businesses that may be affected. While a majority of its ingredients are sourced domestically, the company relies on imported oats from Canada. Mike Gloekler, the Corporate Communications and Public Relations Manager at McKee Foods, indicated, “That’s definitely going to take a toll as we build our granola bar business…”

Gloekler expressed uncertainty regarding whether consumers would face price hikes for their products, aiming to uphold their value brand reputation during economically challenging times. He stated, “We want to be a friend to the consumer as much as we can, especially when things are tough in the economy.”

The duration of these tariffs remains uncertain, leaving both businesses and consumers in a state of anxiety over potential pricing increases.

In conclusion, the new tariffs imposed on imports from Mexico, Canada, and China are expected to result in higher prices for consumers and businesses across America. Experts predict significant cost increases for food and raw materials, emphasizing that the ultimate financial burden will likely be borne by consumers. Businesses, including McKee Foods, are monitoring the situation closely, as the long-term implications of the tariffs remain unclear.

Original Source: www.local3news.com