By Ann Brown
(Source The Moguldon Nation)
Trump’s recently imposed tariffs on Mexico, Canada, and China are expected to cause significant disruptions to the U.S. economy, with rising costs that could hit Black Americans the hardest. These tariffs, which include 25% taxes on imports from Mexico and Canada and 10% on Chinese goods, will likely increase prices for everyday items, from food to housing, CNBC reported.
Here are five things to know.
- Higher Housing Costs
With the tariffs, home construction materials such as softwood lumber from Canada and gypsum from Mexico are expected to become more expensive. This could lead to higher home prices and rents, worsening the already significant housing affordability crisis. Black communities, which face higher rates of homeownership denial and wealth disparities, could see even more barriers to finding affordable housing.
- Increased Car Prices From Tariffs
The auto industry, which relies heavily on cross-border trade between the U.S., Canada, and Mexico, could see a price hike of up to $5,000 for vehicles due to tariffs. These costs will be passed on to consumers, making it much more difficult for working-class families, especially Black Americans, to afford cars—often very necessary for commuting and economic mobility, Time reports.
- Fuel And Energy Price Hikes
Tariffs on Canadian energy resources, which supply a significant portion of the U.S.’s crude oil and natural gas, could increase gas prices—especially in regions like the Midwest. Since Black Americans disproportionately rely on public transportation and driving for work, rising fuel prices could strain already tight household budgets, Black Press reported.
- Grocery Bills Set To Rise
The U.S. imports a large percentage of its fresh produce from Mexico and Canada, and tariffs on these goods will likely drive up food prices. Black communities, already impacted by food deserts and higher grocery costs, will feel the strain as their local supermarkets adjust to the price increase, Seattle Medium reported.
- Tariffs Impact On Black Businesses
Small Black-owned businesses that rely on imports from Mexico, Canada, or China could face rising operational costs, forcing them to either increase prices or cut back on products and services, MSNBC reported.