Political science professor explains how President Trump's tariffs will affect Valley residents
Tariffs announced by President Donald Trump have now gone into effect.
The countries getting hit are Mexico, Canada and China. Goods imported from those countries may soon cost Rio Grande Valley residents more.
If you are a business owner and are buying products from these countries you are going to feel the impact, and for consumers, we are likely going to pay the difference at the store.
These new rounds of tariffs went into effect just after midnight. Goods imported from Mexico and Canada will have a new 25% tax.
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This comes after President Trump delayed the tariffs to Mexico and Canada for one month back in February. Trump has said the tariffs are to force both neighboring countries to do more when it comes to human and drug smuggling.
Another goal of the administration is to pressure companies into relocating their production factories in the United States.
Political science experts say Valley residents can expect it to impact the job market.
"All those trucks that come through and the warehouses, the processing, all of that stuff that is done here in the Rio Grande Valley is going to be impacted. So that is going to reduce employment in the RGV," UTRGV Political Science Professor Mark Kaswan said.
Both Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum have responded with their own tariffs.
But experts say it will be the consumer who will feel the pinch from this tariff war.
"But prices will rise, prices will rise not only because tariffs are a tax that are passed to consumers through increased prices by increasing inflation. Tariffs is the tariffs lead to increased production the domestically produced goods will be priced higher than the imported goods," Kaswan said.
China has also been hit with new tariffs. Since February, products coming from that country have had a 10% tax; overnight that doubled to 20%.