By Tori Apodaca
March 3, 2025 / 6:40 PM PST / CBS Sacramento
SACRAMENTO — The Trump administration’s 25% tariffs on imports for almost all goods from Mexico and Canada are set to take effect on Tuesday.
President Trump said the tariffs are in response to what he calls irresponsible handling at the borders that have led to fentanyl coming into the U.S. The Mexico and Canada tariffs follow tariffs that were previously placed on some products from China.
From fruits and veggies to car parts, economists project that businesses will pass along the cost of the tariffs to customers.
“I just retired, and I am concerned about how far my money will go,” said Herlinda Hernandez-Sample, who was grocery shopping in Sacramento on Monday.
Andre Kamel, the owner of Prestige Auto Works, said his shop relies on imports for about 80% of its car parts.
“Maintain your car so you don’t visit an auto repair shop more often,” Kamel said.
He expects a short-term sticker shock for customers but hopes that long term, the tariffs will be positive in bringing production back to the United States.
Katie Russ, a professor of economics at UC Davis, disagreed. She said that early research shows the tariffs with the U.S.’s biggest trade partners could cumulatively cost the U.S. about $650 billion over 15 years.
“If the object is to protect jobs or bring more jobs to the United States, there are other ways we could go about this,” Russ said.
Russ said the last time we saw something like this, it had negative impacts on the economy.
“The last time we saw something more like this, those tariffs are alleged by many to have worsened the severity of the Great Depression,” she said.
President Trump said the tariffs will raise more money to fund the government and protect domestic industries.
“I am kind of afraid to spend right now,” Hernandez-Sample said.
Some shoppers question if it is worth the higher price of imported products to achieve that. Russ said economists are uncertain how soon we’ll start to see those prices changing for customers.
Canada and Mexico have vowed to retaliate, so time will tell how that could impact California exports as well.
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