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SHOPPERS who frequent popular chains like Walmart and Target should expect to see higher price tags as President Donald Trump’s cut-throat trade war rages on.
Trump wants to charge massive fees to America’s biggest allies, such as Canada and Mexico, and retail executives are warning that consumers will foot the bill.
The president imposed a 25% tax on goods from Mexico and Canada but has delayed the start dates for at least one month.
Meanwhile, Chinese goods will come with a 10% extra fee that’s effective immediately, despite the country’s cries of protest.
Retail leaders are scrambling to determine how their pricing and product selection will change under Trump’s inevitable fines.
According to John David Rainey, Walmart’s chief financial officer, select items are guaranteed to see a price surge.
“We never want to raise prices,” he told CNBC on Tuesday.
“Our model is everyday low prices, but there probably will be cases where prices will go up for consumers.”
However, Rainey said it’s too soon to tell exactly what products will be affected by the tax.
Meanwhile, Lowe’s home improvement stores will also see an inevitable price increase, as nearly 40% of its products come from outside the US.
CEO Marvin Ellison said the company is imposing immediate plans to address the tariffs as he fears a massive sales hit.
“We’ve got plans in place. We’ve got scenarios in place, and we’re trying to understand the implications,” he told CNBC.
Trump’s tariffs target America’s biggest trade partners, so the repercussions will ripple throughout nearly every industry.
Leaders in the automotive industry and other manufacturing fields also fear that production will take a massive hit and affect US jobs.
“These tariffs don’t just hurt Canada. They threaten the stability of industries on both sides of the border,” the US Steelworkers Union, the biggest union in the country, told Reuters.
TRUMP’S PLAN
Trump’s vice-grip on America’s biggest allies has forced them to bend the knee and make concessions.
On Monday, Canada’s Prime Minister Justin Trudeau said that, after having a call with Trump, he decided to implement a $1.3 billion border plan.
Under this plan, border security would be bolstered in a strong effort to stop migrants and deadly drugs like fentanyl from crossing over.
Meanwhile, China’s President Xi Jinping has arranged to meet with Trump on Tuesday after imposing a flurry of his own retaliatory tariffs.
What is the trade war?
DONALD Trump almost started a trade war after he threatened to slap steep tariffs on imports from Canada and Mexico.
The newly-inaugurated president believes the taxes were “worth the price” to stopping the manufacture and import of the deadly drug fentanyl and ending the “RIPOFF OF AMERICA”.
But prices of fruit like avocados and tomatoes and manufactured products like cars or computers are set to be more expensive for Americans.
A trade showdown could cost families $1,000 (USD) and slow down general growth if prices spike – but the Republican appears ready to risk it with the taxes kicking in Tuesday.
Trump slammed those opposing the tariffs saying the US was no longer going to be the “stupid country” that was subsidizing others.
He said his tariffs could bring some pain to the economy, but that is the “PRICE THAT MUST BE PAID” to end trade deficits with Canada, Mexico and China.
In a post on TruthSocial on Sunday, he said: “MAKE YOUR PRODUCT IN THE USA AND THERE ARE NO TARIFFS!!
Trump said he would slap a 25 per cent tariff on all imports from Canada and Mexico and add another 10 per cent tariff on to Chinese trade.
Energy, like oil and natural gas, imported from Canada was also only hit with a 10 per cent tariff.
But soon Mexico and Canada announced condemnatory retaliatory tariffs on the US.
Mexican President Claudia Sheinbaum ordered the mysterious “Plan B” to go into effect which “includes tariff and non-tariff measures” in a lengthy X post.
She said that her government sought dialogue over confrontation with the US – but now Mexico has had to respond with similar force.
When asked about the significance of this meeting, Trump’s top trade adviser, Peter Navarro, said consumers will just have to wait and see.
Speaking at a Politico event, Navarro explained that Trump hopes to get more revenue from tariffs and external sources and less from income taxes.
The adviser said the president wants to “structurally shift the American economy.”
After striking the deal with Canada, Trump said in a Truth Social post, “As president, it is my responsibility to ensure the safety of all Americans, and I’m doing just that
“I am very pleased with this initial outcome, and the tariffs announced on Saturday will be paused for a 30-day period to see whether or not a final economic deal with Canada can be structured.
“Fairness for all!”
