What tariffs mean for local consumers and business owners
PHILADELPHIA (WPVI) -- The new U.S. tariffs went into effect at midnight: a 25 percent tax on all goods coming across the border from Mexico and Canada and an additional 10 percent tax on Chinese products, which now makes it 20 percent.
President Trump says the U.S. is getting ripped off by bad trade deals that cost American jobs, but American consumers, economists, and business owners are expressing grave concern that the tariffs will raise prices, leading to less consumer spending and, possibly, a recession.
READ MORE: 'Dumb': Canada, Mexico blast historic Trump tariffs, threaten retaliation
"Our economy's already in a state where a lot of average people are struggling to afford basic commodities, and now that we have these new tariffs imposed, it's like, ugh it's going to be really hard for people just to make ends meet," said Kessy Joseph of Philadelphia's Fairmount section.
From consumers to business owners, the concern about the impact of tariffs is high.
Action News interviewed Vinnie Iovine at Reading Terminal Market in February.
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"So right now, avocados are probably $1.99. I think I have them in the store, but I could see them going up, you know, $2.50, or something like that," said Iovine of Iovine Brothers Produce.
On Tuesday morning, Target CEO Brian Cornell warned on CNBC that prices on fresh produce from Mexico, like strawberries and bananas, will go up this week.
"The consumer will likely see price increases in the next couple of days," said Brian Cornell.
Produce isn't the only concern. Best Buy's CEO is warning that prices will go up as China and Mexico remain the number one and number two sources for products it sells.
The average cost of a new car is expected to increase by over $3,000.
"So there's hardly anything that we buy that will go untouched," said Jonathan Doh, PhD, International Business Expert at Villanova University
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Toys prices also expected to rise. The Yale Budget Lab estimates the new Trump tariffs could cost the average household up to $2,000 a year.
"So what they have to do is build their car plants frankly and other things in the United States," he said.
Meanwhile, China is imposing additional tariffs of up to 15 percent on some U.S. goods. Canada announced a 25 percent tariff of its own.
Ontario Premier Doug Ford says he's directed his team not to use any American companies.
"We do have to retaliate and I apologize to the American people. It's not you. It's your president that's causing this problem," said Ford.
Mexico's President Claudia Sheinbaum said Tuesday morning that she plans to talk to President Trump this week, but if they can't reach a deal, Mexico will impose tariffs on U.S. goods by this Sunday.
Statement from United Steel Workers International President David McCall:
"The USW stands firmly in favor of fixing our broken trade system and reining in the global overcapacity that for too long has threatened key domestic industries and with them good, community-sustaining jobs. Tariffs for the sake of tariffs, however, do not reflect the strategic planning we need to carry trade reform into the future.
"While we welcome efforts to rebalance our trade relationships, we urge the administration to reconsider its stance on Canada. Fair trade, like we have with our Canadian allies, advances economic growth, promotes job creation and builds widespread prosperity. Abusive implementation of tariffs is not appropriate in this context, and we call on the president, moving forward, to differentiate between trade cheaters and trusted allies that reliably work with us to advance our national and economic security."
