Tomattariffen? US consumers are destined to pay price for Donald Trump’s trade war

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US consumers are facing the possibility of higher prices for popular goods such as tomatoes, avocado and tequila after Donald Trump’s decision to beat tariffs on imports from China, Mexico and Canada.

The potential price increase points to the political risk that Trump takes in pursuing a trade policy that could increase the cost of consumer goods after a presidential election in which voters expressed their frustration over high inflation.

The tariffs are back to similar actions in Trump’s first period, but it was in a period of moderate inflation and the current measures are greater.

“I can imagine that retailers can absorb tariffs in the short term, but I think with such sweeping tariffs will rise,” said Amit Khandelwal, professor of global affairs and economy at Yale University.

China, Mexico and Canada are three of the United States’ largest trading partners responsible for approx. 40 percent of the country’s trade. The United States is the largest market for Tequila. Mexico and Canada are among the largest vendors of agricultural products, including tomatoes and avocado – between 2019 and 2021, nearly 90 percent of all avocado shipments came into the United States from Mexico.

“You feel the pain of these price increases when you do not have good replacements,” said Khandelwal. “Super Bowl comes up, people like to eat guacamole. It can be as simple as that if there is no really good replacement for it. “

China sells the US machines and mechanical equipment worth the tens of thousands of billions of dollars a year that go into any number of popular devices from TVs to iPhones.

“We still do not know how China will respond to the another 10 percent customs duty, but it is likely to be retaliation and lead to even higher consumer prices,” said Sina Golara, assistant professor in supply chain and operational management at Georgia State University’s Business School.

Some of the impact are outweighed by the weaker Mexican Peso and Canadian dollars, but Trump nodded at least to the inflation risks by establishing a lower 10 percent duty on energy resources from Canada, the US’s largest import from the country.

Morgan Stanley economists warned that the impact of tariffs would first emerge in higher inflation with a delay in economic activity. They warned that this could delay any political action from the American Federal Reserve to lower interest rates.

“If we are right that broad tariffs on Mexico, Canada and China will determine inflation before they slow down the activity, Fed may be on the sidelines for some time,” Morgan Stanley wrote in a note to clients on Sunday.

The White House said the tariffs were aimed at putting pressure on the three countries to combat illegal immigration and the flow of drugs like fentanyl in the United States, popular issues among us voters.

There is hope that signs of these numbers that are in the desired direction can mean that the tariffs are lifted or parrotted back quickly.

In Canada, the most immediate influence is seen on the shelves of spirits. Most provinces sell alcohol through state -owned stores, and several have ordered their retailers to withdraw imported us booze from Sales from Tuesday.

Doug Ford, Premier of Ontario, said its liquor stores sold almost C $ 1 billion. Of US products annually. Ontario’s ban will largely cut off a market for some 16 million. People for American producers. British Columbia’s ban will be targeted at alcohol imported from Republican-led “Red States”, according to Prime Minister David Eby.

Canada’s federal government on Sunday released a list of 1,256 products that will be hit in its first round of retaliatory gum on Tuesday.

Poultry and dairy products, fresh fruit and vegetables, wood and paper products including toilet paper as well as some manufactured items such as washing machines, pajamas and handbags will all be affected.

Ministers hope shoppers will be able to switch to international or domestic alternatives to these goods while working with details of a more far -reaching customs response.

Canadian officials said the list of goods was designed to mobilize constituencies in the United States that have influence with Trump, including exporters in Republican -led states. It includes products such as orange juice from Florida and appliances made in South Carolina and Ohio.

Additional reporting after Christine Murray in Mexico City