Impact of Trump’s 25% Tariff on Canada

Re-elected US president Trump plans to implement a massive 25% tariff on Canadian goods the day he comes back into powerIs this all bark and no bite? Or will he push us into a recession?Let’s start with the basics: what are tariffs?What are tariffs?A tariff is essentially a tax placed on goods being imported into a country.The idea is to make those imported goods more expensive, giving domestically produced goods a competitive edge.Sounds simple, right?But the ripple effects can be far-reaching, impacting businesses, consumers, and even entire economies.Now, let’s talk about Trump’s plan.He has proposed implementing a 25% tariff on all goods coming into the United States.That’s a massive increase, and it could touch nearly every product Americans import from trading partners like Mexico and here in Canada.To put it in perspective, let’s look at an example.Imagine an American company importing a car that costs $30,000.With a 25% tariff in place, that car would now cost $37,500How Tariffs Impact Consumers?When a government imposes tariffs, it’s important to understand who really ends up paying the price.Technically, the tariffs are a tax on companies importing goods into the country.For example, if a 25% tariff is placed on imported products, those businesses suddenly face significantly higher costs for those items.Now, here’s the key question: what do companies do with those increased expenses?They certainly don’t just absorb them.Instead, they pass them along to us—the consumers.That means the higher cost of importing goods gets baked into the final price of everything we buy, whether it’s food, cars, or household items.In effect, these tariffs act as a hidden tax, making everyday essentials more expensive.And this, my friends, is what we commonly refer to as inflation.Printing money isn’t the only cause of inflation.It’s not just businesses that feel the pinch—it’s all of us.Why does this impact Canada?Listen and subscribe for more!👉 Learn more, call Jessi at 604 716 6474, email [email protected] or schedule a time to chat here: https://calendly.com/jessirealestate/...Don’t forget to pick up a copy of my best-selling book on Amazon, Rockstar Real Estate Investing if you haven’t yet and we are here for your questions at any time. Pick up my book here: https://amzn.to/3uX43SA