New tariffs on goods from Canada, Mexico and China could impact your bottom line soon.
The new tariffs, implemented Tuesday, include 25% taxes on most imports from Canada and Mexico. They also double tariffs on Chinese goods to 20%.
In his address to a joint session of Congress on Tuesday, President Trump said tariffs "are about protecting the soul of our country." But he also hinted they could drive prices up.
"There will be a little disturbance," Trump said. "But we are OK with that. It won't be much."
Supply chain experts say many Americans are likely already feeling the impact of the new tariffs.
"I think for certain products and goods, they're going to feel the impact immediately," said Joe Camberato, the founder and CEO of National Business Capital, a company that aims to empower business owners.
Camberato said that includes perishable goods like groceries.
American farmers are particularly reliant on Canada for a key ingredient in fertilizer, and Mexico is a key source for America's produce supply. That means the price for foods like avocados and tomatoes will be among the first to rise.
Some restaurant owners are worried about what it will mean for them.
"Last week we got an email from our produce company letting us know that these (tariffs) were going to go into effect and that the price of many, many products would probably go up," said Gregory León, the owner and executive chef at Amilinda, a restaurant in Milwaukee.
"It just means that I'm going to have to pay more for the raw ingredients that I'm going to cook," León said. "Then that's a cost that I'm going to have to pass on to my customers."
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Some businesses are more flexible now, after adjusting their supply chains during the pandemic, when many had to scramble to source their products amid global shutdowns.
"I think I think a lot of companies learned some very big lessons going through Covid," Camberato said. "I think companies should be diversifying their supply chain. You shouldn't build all your products in one factory -- never mind tariffs. ... When I talk to business owners and leaders in a lot of these different industries, especially ones that are manufacturing goods overseas, they are starting to diversify their supply chain to really protect their business from a number of different issues."
For smaller businesses, adjusting where they source goods can be more challenging, forcing them to pass on increased expenses to customers.
León worries that could potentially mean lost business as prices go up.
"Maybe our restaurant was a place you used to go eat at once a week -- now it's a special occasion place," León said. "That means less revenue for me. It means less revenue for my staff."
