NORFOLK, Va. — Tariffs are now in effect for certain goods from Mexico, Canada, and China — now the big question is how soon families could see changes.
Local experts say it can easily be in the next few weeks, although at this time it is a fluid situation. Tariffs will likely cause an increase in prices for consumers and businesses, meaning higher inflation, and we could start to feel it starting at the grocery store.
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"Your going to see not only the cost of eggs increase because of avian flu, your going to see the cost of imported fruits and vegetables at the grocery store increase. Also your going to see the energy cost trickle through the system as well" said Bob McNab, an economics professor at Old Dominion University.
Many of the fruits we eat are imported from other countries, one being Mexico, and phones made in China — not to mention, many homes people live in are built from lumber from Canada. On Thursday, President Donald Trump carved out a month-long tariff exemption for USMCA-compliant goods, which does includes produce sourced from Mexico.
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While details on who's taxing whom for how much is still ever-changing, the threat of new tariffs remain the same.
McNab says families should plan to see an increase on prices at retail stores, and in some cases, retailers may use this as an opportunity to hike up their prices. However, uncertainty remains on how they will do this. If these tariffs continue for the rest of the year, experts say it will act as a big tax increase for the typical American household.
"Estimates suggest that the average household in Hampton Roads will see their cost rise between $2,000 and $4,000. This is not a trivial amount of money, especially with many families struggling now with the after effects of inflation and many federal workers facing uncertainty on whether they will have a job next week" McNab said.
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Tariffs will likely cause an increase in prices for consumers and businesses, which could mean higher inflation, at least temporarily. More tariffs and retaliatory tariffs could also contribute to prolonged economic and inflationary pressures. The American economy be hindered by stagflation if they trigger broader economic effects such as disruptions in supply chains or global trade.
All in all, for families, the cost of tariffs will be hard to dodge for as long as they last. However, McNab added that this needs time to play out and advised that families shouldn't panic but should be prepared for economic upturns and downturns.
