Better Start Budgeting

Trump to add tariffs to Canada, Mexico, and China beginning February 1st.

“25% tariffs on Mexico, 25% tariffs on Canada, and a 10% tariff on China for the illegal fentanyl that they have sent to our country, which has killed 10s of millions of Americans.” -Karoline Leavitt (Whitehouse Press Secretary)

This is something thought up by the Trump administration and any inflated prices, job loss, or negative impacts of the like will be directly the result of the Trump administrations actions and no one else.  Unlike much of our economy, tariffs can have a near immediate cause and effect as companies scramble to make up the losses by the imposed tariffs.  

What does this mean for Americans?

Americans typically tend to care about their pocket books and how things will affect them over other countries or what harm we will cause them. Therefore, I am going to focus on how we will be affected.

According to CNN “The Peterson Institute has estimated Trump’s proposed tariffs would cost the typical US household over $2600 a year”

Further, according to a news report by NBC 5 – Chicago, “Ultimately, the cost of tariffs will be paid by us, the consumer,” George Ball, chairman of investment management firm Sanders Morris. Essentially, businesses care about the bottom line. If prices increase for production (this includes the shipping and exporting of goods) the prices will increase for consumers.

According to the Canadian Press, Chrystia Freeland (Former Deputy Prim Minister and Candidate for the Canadian Liberal Party) stated during an interview with The Canadian Press, “…there should be a 100 percent tariff on all U.S. wine, beer and spirits, and on all Teslas.” She also wants to target Wisconsin Agriculture as well.

Auto manufacturing would be crippled by tariffs. According to The Cato Institute, 74% of products used in the production of Mexican vehicles exported to the US actually originate in the US. We would be charging tariffs on our on product. Further, just about 50% of light duty trucks and automobiles exported to US from Mexico were built by Detroit automakers. Again, these tariffs would be hurting our citizens. -(Source: https://www.cato.org/blog/seven-charts-show-how-us-tariffs-would-harm-american-auto-industry)

What products specifically could be impacted?

From China:

Sneakers, Furniture and Toys could become more expensive

-about 50% of the materials used to make furniture is imported from China.

-about 80% of toys come from China 

From Mexico:

Avocados, Cars, and Beer

From Canada:

Cars (double whammy), French Fries, and Winter Coats

(source: https://www.cnbc.com/2025/01/20/trump-tariff-news-products-and-companies-most-at-risk.html)

Do Tariffs Work?

According to an NBC news report, Trump has tried this before in his previous term.  We have the data.  Not only did they not work, the reactions from affected countries actually hurt Americans.  

Here’s how:

A study by economists at the Massachusetts Institute of Technology, the University of Zurich, Harvard and the World Bank concluded that Trump’s tariffs failed to restore jobs to the American heartland. The tariffs “neither raised nor lowered U.S. employment’’ where they were supposed to protect jobs, the study found.

“The retaliatory taxes imposed by China and other nations on U.S. goods had negative employment impacts, especially for farmers” the study found. “These retaliatory tariffs were only partly offset by billions in government aid that Trump doled out to farmers. The Trump tariffs also damaged companies that relied on targeted imports.”

What did the tariffs do?  The tariffs allowed Trump to spread a fake agenda and gain support from, you guessed it, those most affected by the tariffs Trump imposed.  

(Source: https://www.nbcchicago.com/news/local/what-is-a-tariff-and-how-could-the-tax-impact-you-what-to-know-as-tariffs-could-soon-go-into-effect/3661873/)

What does this mean?

This means that Trump isn’t looking to punish our neighbors or help America build things in America.  He isn’t trying to help the economy or lower prices.  It has proven none of that will happen.  It was proven to Trump during his first term.  There is only one logical conclusion.  Trump’s real goal is to trick his supporters and those who didn’t support him but who will be affected by the tariffs to swallow a false narrative so that he can continue his path to dictatorship.  

He is dangerous and will only end up hurting the American people in the end.  If you don’t believe me, do the research yourself, while you still can.  He is our President, however, it is our duty to make sure that he works for the American people.  That he has our interests in mind not his own.  That his goals are to better the country not to become as powerful as possible.  We must unite as one people and convince our government to stand up to those who intend to do the American people harm.  Even if it is the President of the United States. We must convince them all to work for us. 

Until then, you better start budgeting.  It’s going to be a bumpy ride.  


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