Proposed tariffs will be paid by consumers, economist warns
ST. PAUL, Minn. — Tariffs against America's largest trade partners will begin Feb. 1, the White House says.
President Trump will reportedly be implementing 25% tariffs against goods coming in from Mexico and Canada. The two countries combined provide roughly 30% of the United States' total imports.
Economists warn this could increase taxes by over $1 trillion over the course of the next 10 years.
Mexico is the United States' largest single trade partner – responsible for nearly 15% of total imports. A total of $475 billion in product came into the United States from Mexico in 2023.
Still, Professor Tyler Schipper at University of St. Thomas says there's a chance the proposed tariffs could be a tactic – especially after Trump successfully levied tariff threats against Colombia to convince them to accept deportees.
"We were promised these same tariffs more or less on day one," Schipper said. "They were delayed from day one until now, so there's reason to think the reason they were delayed is they were looking for some sort of gain in negotiating position."
Schipper says the tariffs could have an immediate impact on the price of food. Around 60% of fresh fruit is imported – along with 40% of fresh vegetables.
"Tariffs end up being paid by consumers," Schipper said. "It's baked into the price and, unless you're price shopping every day for every single one of your items, it's hard to track those changes."
