LAFAYETTE PARISH — As President Donald Trump announces new tariffs on imports from Canada, Mexico, and China, local economists are weighing in on how these moves could impact the U.S. economy, particularly for everyday consumers.
The tariffs, which are part of the president’s crackdown on illegal immigration, drugs, and the spread of fentanyl, have sparked concern among shoppers. Many worry about how the higher costs will affect their wallets, especially as prices on everyday goods rise.
Jared Eubanks, a local shopper, expressed his concern, saying, “Consumer prices definitely impact me a lot. At the end of the day, tariffs end up getting paid by the consumer, and I know prices are going to go up.”
In 2022, the U.S. imported more than $3 trillion worth of goods, a significant portion of which came from Mexico, Canada, and China.
Dr. Anthony Greco, an economics professor at the University of Louisiana at Lafayette, offered this explanation: “We sell goods abroad and buy goods from abroad. We call the goods we sell exports and the goods we buy imports, and for some time, we've referred to that as our trade balance.
Any nation would prefer to have a positive trade balance, where we sell more than we buy. But for the last several years, it’s been in reverse.”
Under President Trump’s policies, that dynamic could shift, according to Greco. He said, “I think it’s a good thing because it’s going to get the signal out to people that we are changing our policy. We’re going to impose tariffs where we didn’t have them and reduce our imports.”
However, not everyone is optimistic about the impact of the tariffs. On Monday, the American Farm Bureau (AFB) voiced concerns over the potential harm the new tariffs could have on U.S. farmers and rural communities.
AFB officials pointed out that 80% of the U.S. supply of key fertilizer ingredient, potash, comes from Canada, and the tariffs could drive up costs for farmers, further affecting consumers.
While U.S. residents may face price hikes on certain goods, Greco believes there is potential for long-term benefits.
“If we can reduce that inflow from other countries and encourage more production here, I think we’ll be fine, and I think the trade balance will be a lot better in the future,” he said.
