INDIANAPOLIS — Tariffs on imported goods could mean produce items from Mexico or Canada could be getting more expensive.
That could affect you, the consumer.
The White House announced Friday it will impose 25 percent tariffs on items imported from Canada and Mexico and a 10 percent tariff on Chinese imports starting Saturday.
West side resident Corey McKenzie has some solutions for the hit to his wallet though.
“I’ve been having to meal prep and plan out my meals that way I can save money," he said.
How soon could you see prices rise?
Purdue University Economics Professor David Hummels says to look to President Trump’s last term in office.
“Based on the experience of the first round of Trump tariffs during his first term, consumers would see an immediate increase in the prices of goods purchased from China or Mexico or Canada," Hummels said.
China, Mexico and Canada are the United States' three largest trading partners.
Hummels says foreign companies are unlikely to absorb the extra cost.
“The last time tariffs were put on China, 100 percent of the tariffs were passed on to domestic consumers. None of the tariff was eaten by Chinese suppliers," he said.
Aside from a higher grocery bill, you can also expect an impact on the auto industry.
“Auto manufacturers in Indiana and throughout the Midwest may be unable to get the parts, components and machinery they need to assemble cars," Hummels said.
Another place you may see higher prices is online shopping.
“Anything you can buy from Amazon is for sure going up in price," he said.
Bad news for McKenzie, who relies on the platform to maintain his vegan lifestyle.
“I get a variety of things, like vegan supplements," McKenzie said. “I have a special diet… so a lot of pasta and plant-based foods.”
