JONESBORO, Ark. (KAIT) – A temporary reprieve for consumers as President Trump, Mexican President Claudia Scheinbaum, and Canadian Prime Minister Justin Trudeau announced a delay in tariffs on imports from Mexico and Canada.
Dr. Michael Pakko, chief economist at the Arkansas Economic Development Institute at UALR said tariffs are taxes imposed on imports or exports of goods.
“Because it is a tax, it ends up putting a wedge between the price paid by consumers and the price paid by consumers, and that creates an inefficient loss of trade,” he said.
The tariffs from Mexico will raise prices on several foods and they could have an impact on restaurants.
Avocados, limes, and tomatoes are predicted to bear the brunt of the tariffs. Papitos Manager Manuel Leon said these items are staples in many restaurants.
“Those are the main sources we use every day avocados are 60% of usage in general for all of our restaurants,” he said. “It’s not just us it’s everyone else out there in the market that’s gonna suffer.”
Should the tariffs on imports from Mexico go into effect, the impact could go beyond the kitchen that prepares your favorite foods.
“I just feel like prices are going to rise and it’s just going to be more expensive to supply the items, you know.”
Dr. Pakko said the biggest impact could be on those looking for new cars as car parts constantly travel across borders.
“Evidently these tariffs are going to impact each one of those transactions which could have a big impact, a multiplier effect on the cost of producing an automobile in North America,” he said.
It might be a while before the tariffs hit consumers’ wallets, but it’s something that Leon says customers and restaurants can handle.
“We’ve done it in the past and it’s something more serious this year, but I don’t think it’s going to be for long.”
The delay on tariffs placed on Mexico and Canada is scheduled to last a month. Tariffs for China are still set to go into effect Tuesday.
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