Trump tariffs on Mexico and Canada will increase prices for consumers.

President Donald Trump’s The announcement of tariffs in Mexico and Canada, although delayed for at least a month, could stimulate an increase in prices paid by consumers for products affected by tariffs if they are finally implemented.

Trump announced last weekend that 25% tariff Canadian energy products. Canada and Mexico threatened retaliation tariffs in response to Trump’s rates plans.

The president reached an agreement with Canada and Mexico to delay tariffs for at least a month after the two countries announced measures to counteract fentanyl smuggling and illegal immigration on the United States border.

Although tariffs in Canada and Mexico are waiting for the moment, their potential implementation in the future leaves open the possibility that US consumers can face higher prices of certain products if they finally take effect.

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President Trump has promoted tariffs as a negotiation tool and a fiscal income source. (Photo of Chip Somodevilla / Getty Images / Getty Images)

“Assuming that in the next month more or less tariffs on Mexico and Canada enter into force, you will see that prices rise more in many goods,” Dan Savickas, vice president of government policies and issues in the alliance of protection of the protection of the Taxpayers Business.

Scott Lincicome, vice president of General Economics and Commercial Policy at the Cato Institute, said in an interview with Fox Business that “three large areas for potential pain for the consumer would be food, energy and cars.”

“In food, we import a ton of fresh seasonal products, as well as beer … meat and some other things in Mexico,” he explained. “These are perishable elements that cannot be stored and, in the case of avocados, there are no really adequate replacements, either in the United States or abroad. Since the tenders in the US. UU. They have very benefit margins very Low, will inevitably see any kind.

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Avocados are among Mexico’s products that could see price increases if tariffs enter into force. (Camilo Freedman / Bloomberg through Getty Images / Getty Images)

Lincicome explained that the automotive industry is more complex, with suppliers and products in the United States, Canada and Mexico that comprise the North America car supply chain.

“It applies tariffs on these things and is effectively ensuring some type of substantial cost increase for car manufacturers in the three countries and then the question is how much of that it happens,” Lincicome explained. “Depending on who to speak, it is between $ 1,000 and $ 6,000 in a new car and again, there is some amount that manufacturers can absorb, of course, with less investment, hiring and production in the process.”

“We import both crude oil from Canada and it is a type of crude oil that we really do not do in the United States, it is a heavy crude. Certain refineries, particularly in the west and the west mountain, are designed to process that type of crude and They really cannot process the light crude that the United States does economically or easily, “he explained.

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Tariffs in the Interconnected North America Auto Supply chain could lead to new higher cars. (Michael Neghar news/Chicago/tribane news through Getty images/getty images)

Lincicome added that there would probably be some price increases in appliances such as washing machines, dishwasher and air conditioners that are carried out in the three countries.

Other products that Savickas said could see the price increases due to rates include wood and associated products given the volume of Canadian wood imported by the United States, as well as the tomato products in Mexico.

Brandon Parsons, an economist from the Business School Graziadio from the University of Pepperdine, told Fox Business that his research suggested that the consumer price index (CPI), a popular inflation meter, could increase by 1.3 percentage points if they are implemented duty.

Since the CPI was 2.9% in December, it could boost inflation above 4%, a level that is twice the objective of the Federal Reserve. Parsons said that for the average home, that 1.3% increase in the CPI would probably increase expenses by approximately $ 1,000 and those expenses could increase relatively fast in some cases.

“Assuming these rates pass in a month, I would expect prices in groceries to rise relatively soon,” Parsons explained. “Certain products like an avocado, could spend a couple of weeks, maybe even before in other cases.”

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Gasoline prices could increase if tariffs are imposed on Canadian crude oil imports. (Sven Hoppe / Picture Alliance through Getty Images / Getty Images)

Regarding energy prices, Parsons said his research showed that gasoline prices could increase by 70 cents as a result of tariffs on Canadian crude oil, even with the size of a lower rate of 10% . He added that reprisals between the United States and Canada could boost that even higher increase.

Alex during, senior economist of the Tax Foundation, told Fox Business that, “since these tariffs are pointing to a broader variety of goods, such as agriculture, for example, companies will have less adjustment margins, so that Consumers will have the load in terms of higher prices terms. “

During the United States, it could be seen as a less credible trading partner in the future given the tariff threats against Canada and Mexico, two of the largest commercial partners in the United States that are part of the Mexico-Canada (USMCA) agreement of the states of the states United that Trump negotiated during his first mandate.

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“The United States will also lose more credibility, because when we sign the USMCA, part of that is a commitment not to impose tariffs on violation of that agreement,” he explained. “Then, in general, not only our economy will be worse due to tariffs, but I think that the United States will have more difficulty negotiating free trade agreements in the future.”