MARTIN COUNTY, Fla. — As many Floridians navigate balancing budgets and cutting costs, tariffs on imports from Canada and Mexico are now in effect.
Dr. Brian Strow, Dean of the Rinker School of Business at Palm Beach Atlantic University, told WPTV’s Tyler Hatfield consumers could start seeing the impact of those 25% tariffs at the grocery store by the end of this week.
“Any U.S. consumer is going to come out a loser in this process,” said Strow.
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Strow said tariffs will cut into consumers' pockets more than they might think.
“I think the average person probably would be surprised just how many goods and services they find in their refrigerator, in their pantry, in their home, from home appliances that have parts of the supply chain from Canada and Mexico," he said.
Strow says people could be paying prices 10 to 15% higher on those goods and there could be immediate price hikes on fruits and vegetables, like avocados or tomatoes.
“This is not going to be something to gear up for a year from now,” said Strow. “It's going to be a rolling set of price increases starting virtually now.”
Strow said the auto industry will also take a hit, since many U.S. automakers rely on the supply chain through Canada and Mexico.
Here in Florida, Strow said some agriculture producers may fare better, like those in the state’s strawberry industry.
But Florida shoppers will see increases in prices for other goods, some even from U.S.-made products.
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“You're going to see increased pricing ability,” said Strow. "So [they’re] going to say, 'Hey, my competitor is now 12 to 15% more expensive. I could raise my prices 5 or 6%.'"
Candace Colvin and Christin Ellingwood were visiting downtown Stuart on Tuesday and told WPTV they might have to rethink how they shop.
“It’s going to change what you purchase,” said Ellingwood. “You’re not going to buy things that are overpriced, because you just can't afford it.”
Todd Kitchen, who’s vising from Michigan, said while he thinks the tariffs may hurt his pocket short-term — it’s the right thing to do.
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“These other countries again got to treat us fairly, so if they’re not, this is one way to combat it," he said.
However, Strow said these countries will likely retaliate — adding their own tariffs on U.S exports.
“They call it a trade war, and wars don't have winners,” said Strow. “ Wars just have losers. Producers get hurt in both countries. Consumers get hurt in both countries. The economies of both countries get hurt.”
