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Gallup Sun

Tuesday, Feb 18th

Last update03:11:14 PM GMT

You are here: News Politics New tariffs affect goods from Mexico, Canda, China

New tariffs affect goods from Mexico, Canda, China

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WASHINGTON D.C. — As part of the efforts to secure the borders and close the national trade deficit, President Donald Trump announced a series of tariffs on numerous trade partners in the leadup to and after last year’s election. They were proposed as a way to get other countries to tighten border security and clamp down on both illegal substances and immigration.

A tariff is a tax imposed by a government or supranational union on the imports or exports of foreign goods. Tariffs are a source of revenue for a government that implements them, and they can also help regulate foreign trade and policy while safeguarding its domestic manufacturers.

But for most consumers, this will also mean they have to pay higher prices if tariffs are placed against their country.

PRICES GO UP!

Those tariffs were signed by executive order in January and are now set to go into effect Feb. 4. The order calls for a 25% tariff on imports from Canada and Mexico with a 10% tariff on imports from China due to an alleged rise of drug sourcing and distribution.

However, this move sparked concerns about trade disputes as both Canada and Mexico have announced retaliatory tariffs on imports from the U.S.. The U.S. exports to Canada are estimated to be worth about $155 billion.

Further, the retaliatory tariffs mean that many goods at the grocery store and the gas station could see a noticeable price increase. Some of the items listed in various posts as excludes include:

 

  • Avocado
  • Tomatoes
  • Bell peppers
  • Strawberries
  • Limes
  • Bananas
  • Beans
  • Beef
  • Pork
  • Salmon
  • Eggs
  • Wheat
  • Oats
  • Potatoes
  • Cheese
  • Ice cream
  • Beer, tequila, and other alcoholic beverages
  • Snack foods
One prime import from Canada is crude oil, so the tariffs would likely raise gas prices. Some parts of the country that rely on hydroelectric power could also be affected.

Then there are imports for uranium and natural gas, which could impact the cost of energy for parts of the country. With a price increase for lumber and other supplies, construction projects could also get more expensive.

TALKS PICK UP

The effects were felt early Feb. 3 as the DOW Jones opened with an about 1,000 point loss. Then in the morning, Trump took to the social media site Truth Social to announce he had a conversation with Mexico President Claudia Sheinbaum wherein the Mexico tariffs would be delayed by one month following an agreement to have 10,000 troops at the border as well as to negotiate other terms.

“I look forward to participating in those negotiations, with President Sheinbaum, as we attempt to achieve a ‘deal’ between our two Countries,” Trump wrote.

The Canda and China tariffs are still set to be implemented.

In a Feb. 1 press release, New Mexico Rep. Gabe Vasquez expressed his concern over the new tariffs.

“Everyone who lives in border communities knows how critical our relationship with Mexico is to our economy," he said. "President Trump’s 25% tariffs on imports from Mexico will devastate New Mexico families, businesses, and workers who rely on cross-border trade. These new taxes are a reckless political stunt that will hurt families and small businesses, raising prices on everything from groceries to auto parts."