President Donald Trump has paused some tariffs but has left others – notably, hefty tariffs on China – in place. While the stock market cheered the 90-day reprieve, if the full regime of tariffs eventually goes into effect after that time is up, here are some things you’ll pay more for.
Automobile prices can be a pain point during a trade war. Robert Shoffner, the executive director of Golden Gate University’s Ageno School of Business, said tariffs on vehicles and automotive parts from China, Mexico, and Canada could encourage more domestic production — but would cause short-term sticker shock.
“Keep in mind: The tariff is imposed each time a part crosses the U.S. border, which in some cases for (an) automotive, is up to six times. Car cost in the short-term may increase by as much as $12,000,” Shoffner said.
Ram Ganeshan, professor of operations and supply chain at the Raymond A. Mason School of Business at William & Mary, predicts your Red Lobster bill or your supermarket-seafood-counter tab will be higher under the proposed tariffs.
“Canada is a significant meat and seafood supplier to the U.S. The tariffs are expected to raise prices on these products, impacting consumers who rely on imports for specific cuts and varieties,” Ganeshan said.
Dairy imports from Canada, such as cheese and butter, may become more expensive due to the tariffs. This could affect both consumers and businesses that use these products, Ganeshan said.
Bellying up to the bar may become more expensive.
“Items like beer, liquor, and other processed foods imported from Canada and Mexico are also expected to see increased prices. This is particularly concerning for products where these countries are primary suppliers,” Ganeshan said.
“Based on the checks we have done at a company level, there is a lot of uncertainty about how the increased cost sharing will be done with suppliers, the extent to which costs can be passed on to end-customers, and the duration of tariffs,” UBS analyst Sundeep Gantori wrote in a note this week, estimating that iPhones could cost hundreds of dollars more than they do now.
Under the original tariff plan, steel and aluminum prices will rise — and that affects a lot more than aluminum foil or soda cans.
“The U.S. steel and aluminum industries should benefit from the tariffs as competition is reduced from foreign producers in those countries. However, industries that rely on steel and aluminum will experience higher costs that will ultimately be passed on to consumers,” Shoffner said.
“Every dollar of coffee-related imports generates $43 in value for the American economy, and coffee supports 2.2 million U.S. jobs, all while being America’s favorite beverage,” NCA President William Murray said in a statement to The Daily Coffee News. “Since coffee beans cannot be grown in most of the United States, trade policies should take into account the essential role of coffee trade in Americans’ daily lives and in the U.S. economy, to ensure that Americans don’t face even higher coffee prices amid the current cost of living crisis.”
Consumers won’t find that news good to the last drop.
Dentist David Rothman told Becker’s Dental Review that the trade war will affect patients.
“So many of our products rely on rechargeable batteries and the elements needed to make them. Computers are manufactured and assembled in China. Many dental materials are made in Europe and Japan, and dental supplies and equipment are produced in China, which will negatively affect prices,” Rothman said.
Grain and other crops such as corn and wheat will be affected.
“The U.S. consumer will experience higher prices at the checkout stand. U.S. producers will also see tariffs imposed on their products,” Shoffner said.
If past is prologue, look for your favorite vino to be pricier.
“In 2017-18 during the first Trump tariffs, the California wine industry was adversely affected with some markets permanently lost to other countries,” Shoffner said.