Trump's tariffs on Mexico and Canada will increase prices for consumers; experts offer details
Canada Minister of Energy and Natural Resources Jonathan Wilkinson discusses the potential impact of tariffs, energy exports, a U.S.-Canada energy alliance and the upcoming Canadian election.
President Donald Trump's announcement of tariffs on Mexico and Canada, though delayed for at least one month, could spur a rise in prices paid by consumers for products affected by the tariffs if they're eventually implemented.
Trump announced last weekend that 25% tariffs, which are taxes on imported products, would take effect on products from Canada and Mexico effective Feb. 4 – as well as a lower 10% tariff on Canadian energy products. Canada and Mexico threatened retaliatory tariffs in response to Trump's tariff plans.
The president reached an agreement with Canada and Mexico to delay the tariffs for at least one month after the two countries announced measures to counter fentanyl smuggling and illegal immigration across the U.S. border.
While the tariffs on Canada and Mexico are on hold for the time being, their potential implementation in the future leaves open the possibility that American consumers could face higher prices for certain products if they ultimately take effect.
WHAT'S HAPPENING WITH TRUMP'S TARIFFS ON CHINA, CANADA AND MEXICO?
President Trump has touted tariffs as a negotiating tool and source of tax revenue. (Photo by Chip Somodevilla/Getty Images / Getty Images)
«Assuming in the next month or so the tariffs on Mexico and Canada do go into effect, you'll see prices go higher on a lot of goods,» Dan Savickas, VP of policy and government affairs at the Taxpayers Protection Alliance, told FOX Business.
Scott Lincicome, VP of general economics and trade policy at the Cato Institute, said in an interview with
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