New tariffs imposed on imports from Mexico, Canada, and China are expected to increase prices for American consumers and businesses. President Trump claims these measures will enhance economic prosperity, but experts warn of the financial burden on households. Local companies, such as McKee Foods, are assessing the potential impacts on their products, particularly those sourced from Canada.
The recent implementation of new tariffs by the Trump administration on imports from Mexico, Canada, and China has raised significant concerns about potential impacts on American consumers and businesses. These tariffs, set at 25%, are expected to lead to increased prices on various goods, prompting warnings for consumers to prepare for higher costs.
During a recent Congressional address, President Trump underscored the purpose of the tariffs, stating, “Tariffs are about making America rich again and making America great again, and it’s happening rather quickly. A little disturbance, but we’re okay with that.”
Experts suggest that the tariffs may particularly affect prices for everyday products, notably food and raw materials. Dr. Howard Wall, director at the Center for Regional Economic Research at the University of Tennessee at Chattanooga, noted, “Imports from Mexico—you’ll see a lot of increase in prices of foods… We get a lot of fruits and vegetables that are kind of out of season here.” Furthermore, he emphasized the crucial role of imported raw materials, particularly steel, aluminum, and lumber from Canada.
Dr. Wall asserted that the financial repercussions of the tariffs will ultimately fall on American consumers, stating, “Whether you’re a consumer as a business person, or as a consumer in your household, you’re going to see higher prices.”
Local businesses, including McKee Foods, which produces Little Debbie snacks, are beginning to assess the impact of these tariffs. Although over 90% of their ingredients are sourced domestically, the company relies on Canadian oats. Mike Gloekler, McKee Foods’ Corporate Communications and Public Relations Manager, expressed concern about this dependency. “That’s definitely going to take a toll as we build our granola bar business,” he stated.
While it remains uncertain whether these tariffs will directly lead to increased prices on McKee Foods products, Gloekler indicated that the company is committed to maintaining its reputation as a budget-friendly brand. He stated, “We want to be a friend to the consumer as much as we can, especially when things are tough in the economy.”
The duration of these tariffs remains uncertain, leaving many businesses and consumers in a state of apprehension regarding the future economic landscape.
In summary, the recently imposed tariffs are anticipated to cause increased prices on various goods, particularly affecting food and raw materials sourced from Mexico and Canada. Experts assert that the financial burden will ultimately fall on American consumers, leading to higher costs for everyday products. Local businesses are beginning to assess their exposure to the tariffs, with an emphasis on maintaining affordability for consumers amidst economic challenges. The future of these tariffs remains unpredictable, compounding the industry’s uncertainty.
Original Source: www.local3news.com
