As the U.S. moves forward with implementing new tariffs under the Trump administration, concerns are growing about the potential rise in prices across a variety of industries.
Even products typically considered recession-proof, such as beer and liquor, are not spared from these anticipated tariff hikes. In preparation for the proposed 25 percent tariff on goods imported from Mexico and Canada, businesses within the liquor sector are already stockpiling items like tequila and popular Mexican beers, including Modelo.
Dave Williams, president of Bump Williams Consulting, an analytics firm specializing in the alcoholic beverage industry, highlighted that smaller businesses, in particular, will likely have no choice but to pass these additional costs onto consumers.
Impact on Key Sectors from Food to Automobiles
The primary goal of the tariff plan is to bolster U.S. manufacturing and address trade imbalances. However, this strategy could inadvertently lead to increased costs across various sectors, including food, automobiles, and everyday consumer products.
The food industry stands at the forefront of feeling the tariff's impact. Mexico, a significant supplier of fresh produce to the U.S., may encounter higher costs due to the new tariffs. The Produce Distributors Association, a trade group based in Washington, has cautioned that this could result in increased prices for groceries, particularly fruit and vegetables, for American consumers.
Similarly, the automotive industry could experience price hikes, especially for vehicles imported from Mexico and Canada. Ed Brzytwa, vice president of international trade at the Consumer Technology Association, noted that tariffs might further elevate car prices, which are already at historic highs due to ongoing supply chain disruptions.
The electronics sector is not immune either. Companies like Best Buy have indicated that the tariffs will compel them to raise prices, with CEO Corie Barry acknowledging that the additional costs are likely to be passed on to consumers.
Reference(s):
cgtn.com
