President Donald Trump's tariffs against Canada and Mexico have gone into effect, with a 25% tax on imports from both countries kicking in at midnight.
Canadian energy products are getting a lower 10% tariff. Plus, the 10% tariff that Trump placed on Chinese goods last month is doubling to 20%.
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In response, Canadian Prime Minister Justin Trudeau said his country would slap tariffs on more than $100 billion of American goods over the course of 21 days. China announced Tuesday it will impose additional tariffs of up to 15% on imports of key U.S. farm products, including chicken, pork, soy and beef. Mexico has yet to respond to the tariffs.
"Tariff? That's an economic war. And in any kind of war you don't gain, everyone knows this," Loyola Marymount University economics professor Sung Won Sohn said.
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So what does that mean to you?
The impact of those tariffs will be felt when you’re buying groceries, purchasing alcohol and fueling up your vehicle.
You’ll also see increased prices for lumber, and in a few days, tariffs are added to aluminum and steel – which will impact construction prices, car prices, car repairs and insurance.
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Governor Maura Healey says the cost could be $910 million a year for Massachusetts consumers.
Most of the increased costs would be added to gas and heating oil prices.
Experts estimate you’ll pay over 20 cents more per gallon at the pump and for oil deliveries.
"Often, merchants, they tend to raise the price immediately," Sohn said.
You may even see costs go up in places where you don’t expect it, like car insurance rates, Insurify data journalist Matt Brannon said: “When you have tariffs, it costs more for auto parts. When you damage your car, get into an accident, and then insurance has to pay to cover that.”
Tariffs are essentially taxes paid at the border by importers, who then either eat the costs themselves or pass some or all of it onto their customers — and ultimately, consumers.
News of this trade war hit Wall Street hard Monday.
The Dow Jones dropped more than 600 points and the NASDAQ fell 3%. It was the worst day of trading since December.
Experts expect this trade war could escalate in the days and weeks ahead.
