SHOPPERS who frequent popular chains like Walmart and Target should expect to see higher price tags as Donald Trump’s cutthroat trade war rages on.
President Trump is advocating for imposing significant fees on the United States’ major allies, including Canada and Mexico. Retail executives are cautioning that the cost will ultimately be passed on to consumers.
The president initially promised a 25% tax on goods from Mexico and Canada, but he has delayed the start dates for at least one month.
Meanwhile, Chinese goods will come with a 10% tariff effective immediately.
Retail leaders are scrambling to determine how their pricing and product selection will change under Trump’s inevitable fines.
According to John David Rainey, Walmart’s chief financial officer, select items are guaranteed to see a price surge.
“We never want to raise prices,” he told CNBC on Tuesday.
“Our model is everyday low prices, but there probably will be cases where prices will go up for consumers.”
However, Rainey said it’s too soon to tell exactly what products will be affected by the tax.
Meanwhile, Lowe’s home improvement stores will also see an inevitable price increase as nearly 40% of its products come from outside the US.
CEO Marvin Ellison said the company is imposing immediate plans to address the tariffs as he fears a massive sales hit.
“We’ve got plans in place. We’ve got scenarios in place, and we’re trying to understand the implications,” he told CNBC.
Trump’s tariffs target America’s biggest trade partners, so the repercussions will ripple throughout nearly every industry.
Leaders in the automotive industry and other manufacturing fields also fear that production will take a massive hit and affect US jobs.
The US Steelworkers Union, the largest union in the nation, expressed concerns, stating that “These tariffs don’t just hurt Canada. They threaten the stability of industries on both sides of the border,” as reported by Reuters.
TRUMP’S PLAN
Trump’s vice-grip on America’s biggest allies has forced them to bend the knee and make concessions.
Following a conversation with Trump, Canadian Prime Minister Justin Trudeau revealed on Monday that he has opted to put into effect a $1.3 billion border plan initially disclosed in December.
Under this plan, border security would be bolstered in a strong effort to stop migrants and deadly drugs like fentanyl from crossing over.
Meanwhile, China’s President Xi Jinping has arranged to meet with Trump on Tuesday after imposing a flurry of his own retaliatory tariffs.
When asked about the significance of this meeting, Trump’s top trade adviser, Peter Navarro, said consumers will just have to wait and see.
What is the trade war?
DONALD Trump almost started a trade war after he threatened to slap steep tariffs on imports from Canada and Mexico.
The president believes the taxes were “worth the price” to stop the manufacture and import of the deadly drug fentanyl and end the “RIPOFF OF AMERICA.”
However, the prices of fruits like avocados and tomatoes and manufactured products like cars or computers are set to be higher for Americans.
If prices spike, a trade showdown could cost families $1,000 and slow down general growth, but the Republican appears ready to risk it, as the taxes kick in on Tuesday.
Trump slammed those opposing the tariffs, saying the US would no longer be the “stupid country” subsidizing others.
He said his tariffs could hurt the economy, but that is the “PRICE THAT MUST BE PAID” to end trade deficits with Canada, Mexico, and China.
In a post on TruthSocial on Sunday, he said, “MAKE YOUR PRODUCT IN THE USA AND THERE ARE NO TARIFFS!!”
Trump initially announced that he would impose a 25% tariff on all imports from Canada and Mexico and another 10% tariff on Chinese trade.
Energy, such as oil and natural gas, imported from Canada also received only a 10% tariff.
Mexico and Canada announced condemnatory tariffs on the US in response.
Mexican President Claudia Sheinbaum first ordered a mysterious “Plan B” to go into effect that “includes tariff and non-tariff measures” in a lengthy X post.
She said that her government sought dialogue over confrontation with the US – but now Mexico has had to respond with similar force.
The 25% tariffs on Canada and Mexico are paused for one month while the countries negotiate a new deal, Trump has said.
Speaking at a Politico event, Navarro explained that Trump hopes to get more revenue from tariffs and external sources and less from income taxes.
The adviser said the president wants to “structurally shift the American economy.”
After striking the deal with Canada, Trump said in a Truth Social post, “As president, it is my responsibility to ensure the safety of all Americans, and I’m doing just that
“I am very pleased with this initial outcome, and the tariffs announced on Saturday will be paused for a 30-day period to see whether or not a final economic deal with Canada can be structured.
“Fairness for all!”
