'A lose-lose proposition': How Trump's tariffs could affect Alabamians wallets

'A lose-lose proposition': How Trump's tariffs could affect Alabamians wallets

President Trump’s proposed tariffs could lead to higher prices for Alabama residents.

Trump has suggested implementing a 25% tariff on imports from Mexico and Canada and an additional 10% on goods from China as one of his first actions upon returning to office.

He said the new tariffs would remain in place “until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!”.

Alabama imported $37.2 billion in goods last year, with 42%, nearly $16 billion worth, coming from either China, Canada, or Mexico, according to the International Trade Administration's trade and economy fact sheet for Alabama.

The state imported $8.1 billion in goods from Mexico alone in 2023, with Korea, Germany, China and Canada trailing.

UAB economist Dr. Ben Meadows says these tariffs will affect your wallet.

“Your local grocery store isn’t going to take the tariff hit and pass on a discount to you,” Meadows said. “They have to include that tariff in the final good. So for Alabamians who are already weary out of coming out of inflation, this feels kind of like kicking you while you’re down. I’m actually really losing a lot of sleep about these because this is going to impact not only Alabama consumers, but also Alabama producers, which makes this a lose-lose proposition."

“No country is going to take this lying down,” Meadows added. “Mexico has already responded, saying they will enact what is called retaliatory tariffs, meaning that they are going to enact tariffs on American goods themselves. China has said the same.”

When you’re at the grocery store picking up your last-minute Thanksgiving necessities, take a look at where that food came from. If it’s from Canada, Mexico, or China, your Thanksgiving could be more expensive this time next year.