Trump tariffs could cause Virginians to pay more on everyday goods
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President Trump imposed sweeping tariffs Tuesday on America's largest trading partners.
Why it matters: The tariffs could cost Virginia more than $2.1 billion annually, per estimates from Trade Partnership Worldwide, an economic research firm. They threaten to raise prices of everything from food and clothes to cars and computers.
The big picture: The 25% tariffs on Mexican and Canadian imports, and the 20% hit on Chinese goods, come as the Trump administration says not enough is being done to curb the flow of fentanyl into the U.S.
- Some estimates suggest Tuesday's tariffs could cost the average U.S. household $830 a year — and that's before factoring in the cost of any retaliatory tariffs.
How it works: Tariffs are a tax on imports that American companies pay when buying another country's goods, and they often pass those increased costs on to customers.
Zoom in: The Richmond Times-Dispatch reported the tariffs could affect the costs of medical supplies for hospitals, fertilizer and machinery for farmers and construction materials.
- Richmond restaurants told RTD they may have to raise menu prices.
- Target's CEO is already warning that people should expect fruit and vegetable prices to rise in the coming days.
- Your beer and liquor might get more expensive, too.
Bob McNab, chair of Old Dominion University's economics department, told Virginia Business that how much you feel a tariff depends on how long it's in place.
- He compared it to filling an empty pool with water while standing in it: "It might start off barely nipping at your toes, and at some point it's at your knees, and at some point it's at your nose, and then it's above your head."
What to watch: The White House has made clear more tariffs are coming.
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Axios' Emily Peck, Alex Fitzpatrick, Felix Salmon and Ben Berkowitz contributed.