Companies that depend on cross-border trade were already facing higher prices in anticipation of the 25% tariffs on imports from Mexico and Canada that took effect Tuesday. Now disruption looms, and if consumers won’t accept steep price hikes, they’ll have to downsize operations and lay off workers.
The prospect of a North American trade war has already thrown the global economy into turmoil, with consumer confidence tumbling, inflation worsening and the auto sector and other domestic manufacturers bracing for a downturn.
Trump dismissed concerns that tariffs are largely paid for by consumers through higher prices, saying: “It’s a myth.”
The reality along the border is that prices were already rising in anticipation of Trump’s announcement, and much more disruption now looms.
Chamberlain Distributing represents nine different Mexican farming companies that ship about 5 million boxes of produce every year through Nogales, Arizona, to retail, wholesale and foodservice customers across the U.S. Its owner, Jaime Chamberlain, said he would raise customer prices for all the products he imports, starting Tuesday.