What Tariffs Could Mean for Consumers and Agriculture
WASHINGTON, D.C. (WENY News) -- President-elect Donald Trump has vowed to impose sweeping tariffs for neighboring countries and key trade partners unless they take action to curb illegal immigration and drug trafficking.
“I'm a big believer in tariffs. I think tariffs are the most beautiful word. I think they're beautiful. It's going to make us rich,” said Trump in a recent interview with NBC’s Meet the Press. “All I want to do is I want to have that level, fast but fair playing field,” Trump added.
The President-elect has vowed a sweeping 25% tariff on all goods coming from Canada and Mexico in an effort to crack down on illegal immigration and the flow of illicit drugs, like fentanyl. Doing so, some experts warn, could have massive ramifications on U.S. companies and ultimately consumers.
“An increase in the cost of production for those who rely on imported goods would play itself out in the supermarket,” said Mary Jo Dudley, Director of the Cornell Farmworker Program. “When you go to the grocery store, if you're buying avocados from Mexico, 25% will be added to the current price.”
Dudley says tariffs also drive up costs for the agriculture industry, which could trickle down to consumers.
“This is something that I think consumers need to be aware of,” said Dudley.
According to the USDA, the U.S. imported nearly $200 billion in agricultural goods in 2023. Canada and Mexico are the United States' first and third largest suppliers of agricultural products.
“I don’t think tariffs are the policy of the Trump administration. They are a tool that President Trump uses,” said Congressman Glenn “GT” Thompson (R- PA), Chairman of the House Agriculture Committee.
There are some early indications Trump’s tariff rhetoric could be working. Days after Trump’s tariff announcement, Mexican authorities seized over one ton of fentanyl pills. Local officials called it "the biggest catch of the synthetic opioid in the country’s history.”
“When tariffs are used as a tool, they can be used very effectively to make sure the interests of American farmers and American families are put first,” said Thompson.
Thompson says it’s important to work with the administration and trade leaders to avoid retaliatory tariffs.
“One of the things I’m trying to avoid and going to work hard on is avoiding retaliatory tariffs on American products, specifically American agriculture. I have done a lot of work with this administration on that issue and will continue to be at the table to make sure the interests of American farmers are represented when it comes to trade,” said Thompson.
Trump also said China will face a 10% increase on existing tariffs until it prevents the flow of illegal drugs into the United States.