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Trump's Tariff Plan Could Drive Up Gas, Electronics, and Everyday Costs. President-elect Donald Trump plans to impose tariffs on imports from Mexico, Canada, and China, sparking concerns about potential price hikes for everyday goods, ABC News reports. Trump proposes a 25% tariff on all imports from Canada and Mexico and an additional 10% on Chinese goods, effective immediately after taking office. While Trump claims foreign countries pay tariffs, experts clarify that U.S. importers bear these costs and often pass them onto consumers, increasing prices. Canada, a major crude oil supplier to the U.S., exported $160 billion in oil to the U.S. in 2022. Tariffs could disrupt this trade and lead to higher gasoline prices as crude oil inventories deplete over time. Crude oil, comprising 60% of gasoline costs, may see price increases if tariffs force importers to pay more, ultimately burdening American consumers. Tariffs on Chinese imports, including electronics and auto parts, could raise prices for manufacturers and consumers as supply chains face higher costs. Many U.S. manufacturers rely on parts sourced from China and Mexico. Tariffs could gradually increase prices for vehicles and electronic goods in the U.S. Trump argues that tariffs will boost domestic manufacturing, create jobs, and promote American innovation by pressuring trade partners to adjust policies. Analysts like ABC News’ Alexis Christoforous warn that while the intention is to bolster the economy, the actual effects may include increased consumer costs across multiple sectors. As Trump’s tariff policies loom, American households brace for a potential “slow crawl” of rising prices for essentials, fueled by changes in trade costs.
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