Shoppers could see higher produce prices within days after a 25% tariff on Mexican and Canadian imports took effect Tuesday, Target CEO Brian Cornell warned. The tariffs have already prompted retaliatory measures from Canada and China, fueling fears of a trade war. The 25% tariffs on Mexican and Canadian imports, along with an additional 10% levy on Chinese imports, began at 12:01 a.m. Tuesday. In response, China announced it would impose an additional 15% tariff on products such as chicken, wheat, and cotton, while expanding export controls. Canadian Prime Minister Justin Trudeau also announced a 25% duty on $155 billion worth of American goods, with some measures taking effect immediately and others delayed by 21 days. Economists predict the tariffs could lead to price increases on various products, depending on how much of the added costs companies pass on to consumers. A Federal Reserve Bank of Atlanta study estimates that prices on about a quarter of all consumer spending could rise by 0.81% if businesses transfer half the costs, or by 1.63% if fully passed on. The Trump administration has cited the flow of fentanyl into the U.S. from these countries and the need for stricter border controls as reasons for the tariffs but has not set clear benchmarks for their removal. Mexican President Claudia Sheinbaum criticized the tariffs, stating they will harm both U.S. citizens and businesses by increasing prices and hindering job creation. Sheinbaum plans to announce next week which U.S. products will face retaliatory tariffs. — news from Forbes
