President Donald Trump's proposed tariffs on Canada, Mexico, and China are set to impact a broader range of goods than those implemented during his first term in office. Throughout his initial term, Trump's tariffs affected approximately $380 billion worth of foreign goods, encompassing products from China, washing machines, and steel and aluminum from various countries.
However, the current threat of tariffs on the three largest US trading partners - Canada, Mexico, and China - represents a significant escalation. The proposed tariffs, scheduled for Saturday, could potentially impact around $1.4 trillion of imported goods, assuming no exemptions are granted, as estimated by the Tax Foundation.
These figures highlight the heightened aggressiveness and risk associated with Trump's latest tariff proposals, particularly considering the substantial price increases that have occurred since the initial tariffs were imposed.
One notable example is the impact on avocados, with the majority of imported US avocados originating from Mexico, which now faces a 25% tariff. Economist Brusuelas pointed out the potential consequences of imposing such tariffs, especially in light of events like the Super Bowl, where avocados are a popular ingredient.
The looming threat of tariffs on a wide array of goods from major trading partners has raised concerns about potential economic repercussions, including increased prices for consumers and potential disruptions to supply chains. The situation remains fluid as negotiations and discussions continue between the involved parties to address trade disputes and seek mutually beneficial solutions.
