Trump’s Tariffs: President-Elect Can’t Guarantee Prices (And What That Means for Your Money)
Written by
T. Woods
Edited by
Amber Barkley
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President-elect Donald Trump’s promise to levy strict tariffs — essentially, taxes and trade penalties — upon America’s trade partners has made many economists, as well as everyday Americans, a little nervous. After all, in Trump’s first administration, his implementation of tariffs led to cost increases for many household items. As such, there are concerns that tariffs in his second administration will lead to similar price hikes.
The price increases come from the fact that importers — China, for example — often respond to tariffs by increasing the price of their imports to help offset the new tax. The retailers in America who then buy these imports at a higher price, in turn, sell them at a higher price in stores. This leaves the American consumer potentially paying far more for goods than they did in the past.
There Are No Guarantees
During an interview with Kristen Welker of NBC’s “Meet the Press” in December, Trump was confronted about the possibility of price hikes in response to his promise to apply tariffs on all imports, including 25% for Canadian and Mexican imports, unless both countries end illegal immigration and drug flow into America, and even further tariffs upon China unless the country curtails its fentanyl production.
Trump defended this stance by saying, “All I want to do is I want to have a level, fast, but fair playing field,” adding that tariffs are “going to make us rich.”
However, when confronted by Welker about concerns over the tariffs he campaigned on — asserting they would curb inflation — and asked to pledge that tariffs won’t raise prices in America, Trump deferred and would not guarantee that prices won’t increase due to tariffs.
“I can’t guarantee anything,” he said. “I can’t guarantee tomorrow.”
What Does That Mean for Your Money?
American shoppers can expect to pay more on everything from shoes — per CNN, 99% of all shoes in the U.S. are imported — toys, cars, household appliances, vegetables and food — everything from avocados to tomatoes to coffee — fuel, prepared food and animal products. These could all be more costly if Trump’s tariffs are implemented as promised, with American shoppers paying the difference.
Many retailers, such as Walmart, Autozone, Columbia Sportswear and Stanley Black & Decker, have made clear they will be raising prices on consumers if the tariffs are enacted.
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