As the holiday season descends upon consumers with its typical call for festive spending, shoppers may find themselves bracing for higher prices in the New Year. President-Elect Donald Trump's vow to impose new tariffs on goods from the nation's top trading partners is anticipated to heavily impact costs. According to a report by Queen City News, Trump is threatening a hefty 25% tariff on Mexican and Canadian imports and seeking a 10% hike on tariffs for Chinese goods.
Small businesses are already moving to quickly adapt to these proposed changes. These businesses are rushing to secure inventory and consider price adjustments to mitigate the financial shock. "President-elect Donald Trump is wasting little time affirming that tariffs will be a Day One priority," indicating a sense of urgency among companies to prepare for the expected hit. NBC News coverage suggests that some businesses may have to decide whether to absorb the costs or transfer them onto the consumer.
Dr. Matthew Metzgar, a clinical professor of economics at UNC Charlotte, expressed to Queen City News his outlook on the use of tariffs as a tool for reaching broader policy objectives. "It can be effective to get either other political aims or perhaps to get other countries to reduce their trade barriers," Metzgar told, warning against sparking a trade war with rising tariffs leading to mutual losses.
Simultaneously, experts are forecasting that Trump's tariff plans, intended to be a means to negotiate on illegal substances and immigration, could have the opposite effect on consumer goods pricing. Wayne Winegarden, senior fellow in economics at the Pacific Research Institute, highlighted to the Nebraska Examiner how additional tariffs "will raise the price of not only foreign goods, but those produced domestically as well." Citing cars as an example, Winegarden's analysis suggests price surges that could severely impact American wallets.
With the inauguration looming, and these tariffs set to shortly come into effect, shoppers at Blackhawk Hardware shared with Queen City News that they were buckling up to "spend more this year." These premonitions of inflationary pressure on clothing, major appliances, and technology such as laptops and video game consoles are rooted in the potential repercussions of Trump's trade machinations.
