Tariff Plans by Trump Could Impact Small Businesses in Colorado
DENVER – President-elect Donald Trump’s proposed tariffs on imports from Canada, Mexico, and China may have significant consequences for small businesses, warns Dr. Kishore Kulkarni, an economist at the Metropolitan State University of Denver. Trump announced intentions to impose a 25% tariff on products from Canada and Mexico, citing concerns over illegal immigration and drug trafficking, particularly fentanyl. He stated that these tariffs would remain until the flow of illegal drugs and immigrants is halted, insisting that both neighboring countries have the power to address the issue.
In addition to the tariffs on North American goods, Trump plans a 10% tariff on Chinese imports, highlighting ongoing drug-related discussions that have yielded little change. He accused China of failing to implement serious penalties against drug traffickers despite promises to do so.
Dr. Kulkarni noted that approximately 46% of U.S. imports come from these three nations, suggesting that tariffs on such significant trade partners could lead to increased raw material costs for production. This may compel small businesses to raise prices for consumers, ultimately resulting in higher costs across the board.
The economist expressed uncertainty about whether Trump will follow through with these tariff plans or use them as leverage in negotiations. During his first term, Trump threatened to impose severe tariffs but ultimately enacted less aggressive measures. President Joe Biden retained many of those tariffs on China.
As the situation unfolds, Colorado’s small businesses and consumers remain on alert for the potential economic ramifications of Trump’s tariff proposals.
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