About a week ago, news channels announced that President Trump had imposed tariffs on Canada, Mexico, and China. The tariffs, as I understand it, cover most imported goods from those three countries. Things I know the United States imports from Canada include oil (gasoline), lumber, and paper – more specifically, paper used for newspapers. The tariffs will mean increased revenue for the Federal Government, but it won’t be the importers paying the cost, it will be passed on to the consumer. News reports told us we could expect to pay more for groceries and gasoline.
There is a chance the tariffs won’t last forever, but what they will do is exactly the opposite of what President Trump promised on his campaign trail – prices will go up, not down.
I understand why a tariff is put in place. Not only does it increase the revenue for the government, but it is also designed to protect industry in the country imposing the tariff. The tariff will increase the prices of imported goods and encourage consumers to purchase from local producers. The problem might come when the United States doesn’t produce enough of a product to make up for the normally imported quantities. Almost half of some of our vegetables are imported from Mexico, so if we stop purchasing from them, our prices or availability may be affected. Prices will rise because the supply might be too low. Prices could also rise because producers here in America can’t produce products as inexpensively as countries abroad.
Maybe, in the long run, these tariffs might work, but after several years of elevated grocery prices, I don’t think any of us were looking forward to paying even more for the food we need to feed our families or the fuel we need to move our vehicles – among many other products.
Have A Good Week?
