How will tariffs impact Pittsburgh consumers?
President Trump's tariffs are set to take effect at 12:01 a.m. on Tuesday.
As of now, Mexico and Canada are expected to be hit with 25% tariffs on imports. Canada will also be hit with a lower 10% tax on energy products like oil and electricity. China's universal tariff will double, making it 20% on imports.
The president is imposing the tariffs because he says drug trafficking and immigration have hit "unacceptable levels" at the country's borders with Mexico and Canada.
The big question is how all of this will affect Pittsburghers. Will companies absorb the tariff price increases or pass them along to consumers?
What will be impacted by tariffs?
It's not a stretch to say most of what you buy will be affected by the tariffs.
The cost will go up for businesses that buy produce like tomatoes, raspberries and avocados, which are from Mexico. Cell phones, TVs and clothing from China could also face potential new tariffs. When it comes to construction projects, much of the lumber, even the gypsum in drywall, that's from Canada will face tariffs.
Will businesses pass the costs on?
Brian Leheny, a plumber in Midland, Beaver County, was getting supplies on Monday at the Home Depot in North Fayette.
"If you find you're paying more for things, are you going to have to pass that along?" KDKA-TV's Barry Pintar asked Leheny.
"Absolutely. For my supplies, for what I do for work every day, my supplies are going up, which kind of takes money out of my pocket," Leheny said.
Corey Choate owns a residential remodeling business in Allegheny County. He believes a new tariff that could potentially strengthen American business is worth it.
"It would probably be worth it to me to sort of even out the playing field as far as trade imbalance," Choate said. "But a 25% increase as opposed to a 700% increase? I mean, makes a huge difference. A small increase would not be something that would kill the industry."
How much will tariffs cost consumers?
It is also important to understand that tariffs are not permanent. They can go as quickly as they come or they can stick around for a long time. One thing that is certain, according to most business owners, is that if their costs go up, so will yours.
How much will it affect your bottom line? It's hard to say. But one organization, the National Tax foundation, says that at the end of the day, the average family could end up spending an extra $800 a year on these taxes or tariffs.
