SAN DIEGO (KGTV) — Business owners across San Diego are already feeling the effect of tariffs at appliance stores, wineries and clothing outlets.
On Wednesday, President Donald Trump announced more tariffs on all U.S. trade partners. Reaction to the upheaval was fast: the financial markets plummeted, and the country’s economy was put on tilt.
Experts believe consumers could soon see even more significant changes.
“Which products do you think will increase in price first and foremost?” ABC 10News reporter Perla Shaheen asked.
“Number one, I think autos are going to be impacted," said Alan Gin, an Economics professor at the University of San Diego. "It’s been estimated this will add $3,000 to $15,000 to the price of a car.”
Gin says cars cross the border multiple times in production, and importers would have to pay a tariff each time, making every car more expensive to build.
“The other area I think we’ll see it is agriculture and food," he says.
Gin says during the summer months, the U.S. gets most of its fresh produce from other countries. He believes Americans will see fruits and vegetables go up in price next.
“Clothing, iPhones, when do you think those items will start to see an impact?” Shaheen asked.
"Some importers have tried to buy as much as possible ahead of these tariffs, so there could be a lot of product in inventory and in the supply chain," Gin said. "If that's the case, it will take a while to impact.”
Gin says all consumer items will eventually be affected. Even the president acknowledges there will be some pain. But which items and how fast? It’s anyone’s guess.
