TAXING TIMES
Donald Trump takes trade war to next level as tariffs finally hit Canada & Mexico after slamming ‘myth’ it raises prices
Target and Best Buy's chief executives warned of potential price hikes for American consumers
PRESIDENT Donald Trump's punishing tariffs have gone into effect as American consumers could soon see increases in products imported from Mexico, Canada, and China.
The steep tariffs on the ' three largest trading partners went into effect at 12:01 am on Tuesday - igniting a trade war that has seen swift retaliation measures from Canada and China.
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's sweeping tariffs will have wide-ranging implications for American businesses and consumers.
US shoppers may soon encounter price increases on several categories of goods, including vehicles, clothing, toys and gadgets, and groceries and alcohol.
The United States gets 75% of its imported toys and sports equipment from China, which was penalized with 20% tariffs up from 10%.
Meanwhile, many cars sold in the United States are built largely in plants in either Canada or Mexico.
Trump defended his stance, writing in a Truth Social post, "If companies move to the United States, there are no tariffs!!!"
Meanwhile, on Thursday, Trump told reporters that fears of higher prices are "a myth that's put out there by foreign countries that really don't like paying tariffs."
Companies have two options for dealing with the tariffs: either pass the added cost of imports to consumers in the form of higher prices, or absorb the fees and either cut costs elsewhere or take a profit loss.
Brian Cornell, the chief executive of , said his business relies heavily on Mexican produce during the winter months.
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Cornell said that Target customers could see rising prices on fruits and vegetables in the coming days due to the 25% tariff on Mexican imports.
In 2024, the United States imported $46 billion of agricultural products from Mexico, according to the .
"Those are categories where we'll try to protect pricing, but the consumer will likely see price increases over the next couple of days," Cornell warned in an interview with .
Trump unleashes sweeping revenge tariffs on EVERY country that taxes US goods as he quips 'it's very simple'
"If there's a 25% tariff, those prices will go up."
Cornell teased that strawberries, avocados, and bananas are some of the items that could see a price hike.
'GIANT WILDCARD'
The Target executive downplayed the levies on Chinese goods, saying his business has reduced its reliance on China to about 30% of imports from more than 60%.
In a conference call on Tuesday, Corie Barry, Best Buy's chief executive, warned that price increases are now "highly likely."
"Trade is critically important to our business and industry," Barry said.
"The consumer electronic supply chain is highly global. We expect our vendors across our entire assortment will pass along some level of tariff costs to retailers, making price increases for American consumers highly likely."
Matt Bilunas, Best Buy's CFO, added, "The giant wildcard obviously is how the consumers are going to react to the price increases in light of a lot of price increases potentially throughout the year and a general consumer confidence that is showing a little signs of weakness at the moment."
'TRADE WAR LAUNCHED'
's Prime Minister countered the Trump administration's 25% levies on Canadian imports by imposing 25 percent tariffs on American goods.
"Today, the United States launched a trade war against Canada, their closest partner and ally and their closest friend," Trudeau said in a press conference.
"At the same time, they're talking about working positively with Russia, appeasing Vladimir Putin, a lying murderous dictator. Make that make sense."
Trudeau said it's been difficult to determine President Trump's end goal in imposing tariffs and cautioned Canadians that the levy implications would be "tough."
"This trade war hurts American families and Canadian families," the prime minister said.
"Perhaps he wants to sink the Canadian economy, so that he can annex Canada.
"That's never going to happen. We will never be the 51st state."
'DUMB THING TO DO'
The US imports vast amounts of agricultural products from Canada, including wheat, barley, oats, as well as meats goods such as pork, beef, and poultry.
Dairy products, including cheese, milk, and butter, are also significantly imported from Canada, as well as vegetables and fruits.
What items can potentially be impacted by Trump's tariffs?
President Trump's punishing tariffs against China, Canada, and Mexico, the United States' three largest trading partners, took effect on Tuesday morning.
Tariffs on China goods, which were already dealing with a 10 percent levy, were increased to 20 percent.
A 25 percent tariff against Canada, the United States' largest trading partner, and Mexico went into effect at 12:01 am on Tuesday.
Items that could see price hikes:
- Automotive industry: cars, trucks, car parts, gas and petroleum
- Electronics: household appliances, smartphones, tablets, computers, telecom equipment
- Everyday essentials: fruits, vegetables, bread, pastries, other baked goods, oils, beefs, pork, and poultry meats
- Consumer goods: cotton, footwear, toys, games, sporting equipment
- Spirits: tequila, Canadian whisky, Mexican beer
- Construction material: steel, softwood lumber, gypsum, aluminum, metal products
In a direct message to President Trump, Trudeau said, "It's not in my habit to agree with The Wall Street Journal, but Donald, they point out that even though you’re a very smart guy, this is a very dumb thing to do.
"We two friends fighting is exactly what our opponents around the world want to see."
A shared on X showed an employee at a Liquor Control Board of Ontario (LCBO) location removing Jack Daniels whiskey bottles from the store's shelves.
also announced 15 percent tariffs on imports of chicken, wheat, corn, and cotton from the United States, as well as 10 percent tariffs on imports of sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products.
Lin Jian, a spokesperson for China's Foreign Ministry, said the country will "fight till the end."
"I want to reiterate that the Chinese people have never feared evil or ghosts, nor have we ever bowed to hegemony or bullying," Jian said.
"Pressure, coercion and threats are not the right ways to engage with China.
"Trying to exert maximum pressure on China is miscalculation and a mistake."
Meanwhile, President Claudia Sheinbaum called Trump's 25% tariffs on her country "offensive, defamatory, and without support," and vowed to respond to the new measures on March 9.
Sheinbaum said her goal is not to start an "economic confrontation" but said her administration will respond with its own "tariffs and other measures."
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"No one wins with this decision. On the contrary it affects the people," the Mexican president said of the United States' tariffs on Tuesday.
Sheinbaum said members of her administration have a call with President Trump scheduled for Thursday.
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