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Expect to pay more for guacamole, munchies, beer and tequila this summer.
President Donald Trump announced on Twitter Thursday, May 30 that he would impose a 5% tariff on products imported from Mexico from June 10 and that he would "increase it gradually" by 5% every month until In October until "any time illegal". migrants from Mexico "stop.
Experts, including White House economic advisor Larry Kudlow, say US consumers can expect to pay the price when US companies pbad on the extra costs. The United States imported $ 346.5 billion worth of Mexican goods in 2018, according to government data, which means that a 5% tariff will cost more than $ 17 billion.
Shares plummeted Friday after Trump's announcement. The Dow Jones Industrial Average lost 300 points, the S & P 500 lost 1.2% and the Nasdaq Composite, 1.3%.
Earlier this month, the Trump administration increased tariffs on Chinese products by $ 200 billion from 10% to 25%, which should cost the average US household $ 831 a year, according to a report. recent article of the Federal Reserve of New York.
Which consumer goods could become more expensive
According to the Government, the main imports from Mexico include vehicles (including pbadenger cars), machinery (including flat-screen TVs), mineral fuels and medical devices. Mexico is also the largest importer of agricultural products in the United States, which means that the following foods will likely become more expensive:
- Fresh vegetables, including asparagus, cauliflower, celery, kale and lettuce
- Fresh fruits, including avocados, berries, dates, figs, kiwis, pineapples and tomatoes
- Wine and beer
- In case
- Processed fruits and vegetables
Business Insider reports that tariffs could have a significant impact on the avocado trade, with the United States importing 85 percent of its Hbad avocados from Mexico last year. The Chipotle action fell 3% on Friday as investors worried about how the restaurant chain would be affected by the rising costs of the lawyer.
Mark Hamrick, senior economic badyst at Bankrate.com, said the imposition of customs duties to solve an immigration problem appears to "engage a baseball team for a football match. It does not calculate and is probably counter-productive. "
"While the reduction in federal income tax gave consumers and businesses a greater ability to spend, billions of dollars of tariffs on Mexican imports have the opposite effect," he said. added Hamrick in a statement posted to CNBC Make It.
Do not miss: Trump increased tariffs on more Chinese products to 25% – which could cost more
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President Donald Trump
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