How Trump's tariffs could impact consumers in Minnesota, according to experts
MINNEAPOLIS — While President-elect Donald Trump said his plans for tariffs will convince countries to put a stop to illegal drugs and migrants, experts said the announced 25% tariff on all goods from Canada and Mexico, and even more on Chinese goods, will increase the cost of just about every good you can think of.
"Even if it's implemented for a couple of days or a week, it's going to have a very swift impact," said Patrick De Haan, Head of Petroleum Analysis for GasBuddy.
Canadian tariffs would mean Minnesotans will pay between 35 and 50 cents more per gallon for gas, depending on the season, De Haan said. That's because a majority of our state's crude oil comes from Canada.
]"Economists generally agree that that means those tariffs get passed on to consumers," said Tyler Schipper, an Associate Professor of Economics at the University of St. Thomas. "A lot of Fords right now are produced in Mexico, and so Ford motor cars could come in the US and be 25% more expensive."
Best Buy's CEO is now warning that shoppers will shoulder the higher costs of electronics.
"Those Chinese imports at Best Buy would be more expensive, probably getting close to that 25% tariff," said Schipper.
Schipper said the general belief among economists is that tariffs hurt the economy and have in the past led to trade wars.
Higher costs would be especially harmful now during a time when inflation is hitting Americans especially hard, he said.
"This is costly, both to American companies, and American consumers," said Schipper.