Tuesday, 29 April 2025
26.7 C
Singapore
26.8 C
Thailand
20.1 C
Indonesia
28.5 C
Philippines

US tariffs: How Trump’s trade policy is impacting prices and businesses

Trump’s new tariffs on Canada, Mexico, and China could raise prices on electronics, food, and clothing, affecting consumers and businesses.

You now face higher costs on a range of goods after former President Donald Trump imposed fresh tariffs on imports from Canada, Mexico, and China. Signed into effect on February 1, the executive order sets a 25% tariff on Canadian and Mexican goods, while Chinese imports will face a 10% tax. Additionally, Canadian energy exports to the US will see a lower 10% tariff.

Trump justified these tariffs as a move to “halt the flood of poisonous drugs into the United States,” specifically referencing fentanyl. However, the new policy extends far beyond drug-related measures, impacting technology, agriculture, and retail industries.

Consumers to bear the cost

While Trump insisted the tariffs would “enrich” American citizens, economic experts warn that the real burden will likely fall on consumers. Historically, tariffs have increased prices as businesses pass on higher import costs to shoppers. Essential goods, including electronics, clothing, and fresh produce, are expected to see price hikes in the coming months.

Major tech companies, in particular, may struggle with rising costs, as many rely on Chinese manufacturing for components and assembly. This could lead to more expensive smartphones, laptops, and other consumer electronics. Meanwhile, retailers and food suppliers may adjust prices to offset increased import fees.

The wider economic impact

The move has sparked concerns among business leaders and economists, who fear it could lead to strained trade relations and slower economic growth. Canada and Mexico are two of the US’s largest trading partners, and the 25% tariff could disrupt supply chains and increase operating costs for businesses.

China, which has been in a long-running trade dispute with the US, may retaliate with its tariffs, further escalating tensions. If this happens, American companies exporting to China could face additional challenges, leading to potential job losses in key industries.

As these tariffs take effect, pricing will shift across multiple sectors as businesses and consumers adjust to the new economic landscape.

Hot this week

POCO launches entry-level C71 smartphone in Singapore with premium features

POCO launches the budget-friendly C71 smartphone in Singapore, offering premium design, enhanced cameras, and smooth performance at S$109.

XPENG unveils AI-powered innovations and supercharged EVs at Auto Shanghai 2025

XPENG launches AI brain, 10-minute charging EV, and IRON humanoid robot at Auto Shanghai 2025, setting new mobility benchmarks.

Ziff Davis takes OpenAI to court over alleged copyright infringement

Ziff Davis sues OpenAI over copyright claims, accusing the AI firm of copying and using its content without permission.

GITEX to launch in Vietnam, unlocking growth in Southeast Asia’s digital economy

GITEX announces debut in Vietnam for October 2026, spotlighting its growing tech economy and boosting Southeast Asia’s digital innovation.

Meta’s Oversight Board asks for clarity on new hate speech rules

Meta’s Oversight Board is urging more transparency on hate speech policy changes and urging the company to protect vulnerable users.

India could manufacture all US-bound iPhones by the end of 2026

Apple plans to manufacture all iPhones for the US market in India by the end of 2026 to avoid China tariffs and secure its supply chain.

Razer Launches Pro Click V2 and V2 Vertical Mice: Blending Gaming and Productivity

Razer's new Pro Click V2 and V2 Vertical mice offer gaming precision and ergonomic comfort, with AI prompt access and long battery life, available now!

Nintendo Pop-Up Store and Mario Kart Fun Return to Jewel Changi Airport

Experience the magic of Nintendo at Jewel Changi Airport with the return of the Pop-Up Store and the exciting Mario Kart Jewel Circuit Challenge!

Lian Li’s new Lancool 207 Digital case brings a 6-inch LCD screen to your PC

Lian Li's Lancool 207 Digital PC case brings a bright 6-inch LCD screen to your setup, offering style, function, and full customisation.

Related Articles

Popular Categories