ST. LOUIS – Economic experts are warning that American consumers will be majorly impacted by President Donald Trump’s trade war. The President’s tariff’s on Canada, Mexico, and China are set to comprehensively impact energy, automobiles, construction, and agriculture, among many other consumer goods.
Dr. Mamoun Benmamoun is an associate professor of international business at Saint Louis University’s Richard A. Chaifetz School of Business. He describes the future under these tariffs as “painful.”
Economists already see a dip in American consumption patterns throughout the first months of 2025, with more people saving for the possibility of rising costs and even unemployment. an alternative impact of U.S. companies not charging customers more but still seeking to save on costs.
Dr. Benmamoun added, “We should not look at it from just a direct impact; it is also spillover effects. You touch one sector but it’s going to touch all sectors as well.”
All three countries are responding with countermeasures, followed by Trump threatening reciprocal tariffs on our 3 major trading partners starting next month, a move China announced on the American agricultural trade after Trump hit them with an extra 10% tariff. This will especially effect Missouri and all the hardworking farming communities that make up our great state
“So farmers are gonna suffer and we saw what happened in 2018 when we had the same issue with China. China retaliated against American agricultural products, which ended up costing a lot of American farmers,” explains Dr. Benmamoun. “To the level that the government has to intervene and provide them with some financial assistance.”
Some experts expect a minimum $1200 increase a year per American household. Now, the world waits and saves
Dr. Benmamoun concluded, “We should be worried, honestly, but at the same time we don’t know whether this is a negotiation tactic or it’s a long-term policy.”
It will only take a mere few weeks of these implemented tariffs to cause devastation among America’s economy, with the stock market already dropping tremendously. Could Trump’s aggressive tactics serve as a temporary measure in his long-term strategy to attract businesses back to American soil and prevent drug trafficking across our border? Only time will tell.