Many in the Bay Area are starting to brace for higher prices of goods as President Donald Trump announced sweeping new tariffs on Mexico, Canada, and China.
California State University, East Bay economics professor Farhad Sabetan said the tariffs would likely mean the average household will spend an extra $2,600 a year.
"These tariffs will impact everything from computer chips to oil and gas to pharmaceuticals to electronics [and] widescreen TVs," he said.
Importers of Mexican products will have to pay 25% more for everything from tomatoes to tequila. Mexican grocery store owners across the Bay Area are starting to prepare for the increase.
A tariff will also be imposed on Canada, consumers will have to pay 25% more for potatoes, grains, lumber, and steel.
Canadian Prime Minister Just Trudeau also announced a retaliatory tariff.
"I am announcing Canada will be responding to the U.S. trade action with 25% tariffs against $155 billion worth of American goods," the Prime Minister said.
Mexican president Claudia Sheinbaum, who has Bay Area ties, said she will also implement new tariffs on the U.S. but did not provide specifics. China is also facing a 10% tariff.
The Trump administration's announcement targets the U.S.'s top three trade partners, who account for 42% of all goods imported to the country.
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The tariffs will go into effect Tuesday with Trump suggesting that more may be coming.