Here's what is getting more expensive because of tariffs

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and how Donald Trump’s new tariffs will impact your wallet.

Transcript

00:00President Trump is making good on his promise to slap tariffs on 1.4 trillion

00:04dollars worth of goods made in Mexico, Canada and China. Products shipped from

00:10Mexico will see a 25% import tax, Canadian goods except for energy

00:15products will see a similar amount, while Chinese goods will be hit with an

00:19additional 10% tariff. These are all expected to kick in as of February 3rd.

00:25The president is warning Americans will feel a little short-term pain, but what

00:30he left out is that pain comes on top of the steepest spike in inflation felt

00:35this generation. The grocery store is likely to be the first place where most

00:40Americans feel the impact. I'm talking 46 billion dollars worth of food items

00:44from Mexico alone. 20% of our fresh fruits and vegetables come from our

00:49southern neighbor and it's not just avocados. Alcoholic beverages are also on

00:54the tariff hit list. I'm talking beer, tequila and of course mezcal. Your next

01:00new car is likely to be at least $3,000 more expensive according to some

01:05estimates. You might think because your automobile is made in the USA you'll be

01:09immune, but even cars assembled within the border have dozens of parts made in

01:15Mexico and Canada. Anything you have to replace that has steel in it will face

01:20higher tariffs since Canada and Mexico will no longer be exempt from global

01:24steel tariffs. Home prices, which are already at or near record highs, will be

01:29impacted. 30% of the type of lumber used to build homes comes from our Canadian

01:35neighbors, while 71% of materials used within drywall are imported from Mexico.

01:41And that's just the impact of Mexico and Canadian tariffs. Chinese products are

01:46even more abundant inside and outside our homes, ranging from the things we

01:51cook and eat with, what we wear on our feet and backs and what our kids play

01:56with. Wall Street isn't an uproar as the Trump trade war 2.0 begins. Stocks are

02:01down sharply across the board in Monday action. From the New York Stock Exchange

02:06I'm Conway Gittens with the street.

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