Leader Schumer Slams Trump Tariffs That Are Going To Raise Prices As Much As $1200 A Year For American Families; Leader Schumer Urges Admin To Back Off On Tariff War And Put Forward Legislative Solutions To Lower Costs From The Grocery Store To The Gas Pump
New York, N.Y. – U.S. Senate Democratic Leader Schumer (D-NY) today warned about raising costs on a myriad of goods after economist far and wide express fear about tariffs. Leader Schumer says the Trump Administration must see the light and commit to lowering costs, as there is no justification for 25% on Canada and Mexico.
With 25% tariffs on Canada and Mexico now in effect, Senate Democratic Leader Chuck Schumer (D-NY) railed against the upcoming price spikes coming to your local grocery store, gas pump, small business – even your upcoming Super Bowl party. Schumer said these no-sense tariffs equate to a tax increase on Americans across the country.
“For consumers, the 25% tariff on Canada and Mexico that President Trump just slapped into effect can be summed up in two words: higher costs,” said Leader Schumer. “But the President is not just randomly slapping on tariffs, he’s slapping consumers right where it hurts: their wallets. If there is one thing economists know, because past is prologue, it is that sweeping tariffs without any real economic plan is a tax on consumers that increases costs and increases inflation across the U.S.”
Schumer urged the Trump administration to back off this nonsensical plan—a tariff war with our neighbors and allies—as he also announced that democrats will put forward legislative solutions to remedy these actions. Schumer said consumers want lower prices, not higher ones, and that it was President Trump who campaigned on lowering grocery bills, among other costs—and that he is now actively going to raise these costs more.
“These 25% tariffs on Canada and Mexico make 100% no sense,” Schumer said. “Even more shocking, it was Donald Trump who campaigned on lowering costs, and now it is Donald Trump who will raise them, and expects consumers to just be OK with that.”
Schumer said that Mexico and Canada, the top two U.S. trading partners, have also immediately vowed retaliatory tariffs, and that this will have additional and unknown cost implications.
According to CNN, Mexico and Canada supply a significant share of several key food categories. For example, Mexico is the largest supplier of fruit and vegetables to the US, while Canada leads in exports of grain, livestock and meats, poultry and more. Agricultural products from Mexico and Canada, in particular, could become more expensive for consumers, as grocery retailers operate on thinner profit margins than most industries. With little room to absorb higher tariff costs, the grocers may have to pass them on to shoppers.
Although the US typically exports more agricultural goods than it imports, the value of imports has increased faster than that of exports in the past decade, according to the US Department of Agriculture. Additionally, climate change has increased US reliance on countries like Mexico, where growing conditions are more favorable, CNN reports.
Last year, according to reports, the US imported $46 billion of agricultural products from Mexico, according to USDA data. That includes $8.3 billion worth of fresh vegetables, $5.9 billion of beer and $5 billion of distilled spirits. But the biggest category of agricultural imports from Mexico last year was fresh fruits, of which the US imported $9 billion worth, with avocados accounting for $3.1 billion of that total. When it comes to fuel and overall energy, CNN notes that the US imported $97 billion worth of oil and gas from Canada last year, that country’s top export to the US.
The 25% tariffs on Canadian and Mexican goods and 10% on Chinese goods – will take effect Tuesday. The nonpartisan Budget Lab at Yale University estimates that Trump's tariffs would cost the average American household as much as $1,200 in annual purchasing power. And the Conservative Tax Foundation says each household will see about an $830 increase in costs per year. In addition, economists at tax and consulting firms, calculate that the tariffs would increase inflation and shrink the economy “as higher import costs dampen consumer spending and business investment,’’ NBC reported.
“No matter which way you slice it: costs are going to climb for consumers. I will work with my colleagues to undo this mess, get costs down, and get these billionaires out of the way.” Schumer said.
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