WEST PALM BEACH, Fla. — Economists are concerned prices nationwide could increase in the new year if President-elect Donald Trump moves forward with a plan to slap a hefty import tax on other countries.
On Monday, Trump posted on social media that once he is back in the Oval Office, he wants to sign an executive order to implement a 25% tariff on all shipments into the U.S. for Mexico, China and Canada — and an extra 10% tax for China.
"There are going to be winners and there are going to be losers," University of Tampa associate economics professor Abby Hall Blanco.
National Politics
Trump threatens to impose sweeping new tariffs on Mexico, Canada and China
Blanco believes the "winners" will be those who own domestic businesses — like John Kilburg of Palm Beach County.
He owns K12 Print in Riviera Beach and explained why he would like to see Trump's tariffs pass.
"When their prices go up, we see an influx of onshore business, which allows us to create more jobs here," Kilburg said. "I think our revenue could double easily."
Businesses and consumers who rely on foreign products will be impacted by the tariffs, according to Blanco.
She said we can also expect the countries targeted to not simply accept the tax increase without action.
"We would also expect to see negative consequences for U.S.-exporting industries," Blanco said. "These countries have the ability to retaliate — and to be very clear — they do."
On Thursday, President Biden shared his opinion on the tariffs stating "I hope (Trump) rethinks it."
The president-elect said in his social media post that the purpose of the tariffs is to combat the amount of drugs and migrants coming into the U.S. from these countries.
"It is time for them to pay a very big price!" Trump said.
This is something Kilburg agrees with.
"We all need that for a healthier U.S.," Kilburg said.
But Blanco thinks it won't do much in the long run.
"Just because something is prohibited, or because you add a tax onto something, doesn't mean that you're going to necessarily stem ... these flows of migrants and potentially drugs," Blanco said.
Trump said the tax increases would be one of the first executive orders he intends to sign once he takes office in January.
