U.S. consumers face higher prices as Trump and Sheinbaum plan dueling tariffs

U.S. consumers may face higher prices if President-elect Donald Trump and Mexican President Claudia Sheinbaum implement dueling tariffs. Sheinbaum indicated Mexico would respond to any U.S. tariff increases, signaling a more confrontational trade relationship than under the previous administration. Trump plans to raise tariffs on goods from Mexico and Canada by 25% and impose a 10% tariff on Chinese products. Economists warn that these tariffs typically lead to increased costs for consumers, as foreign sellers often raise prices to cover the tariffs. Seven key industries, including auto and agriculture, could be significantly affected. Business owners express concern that tariffs may lead to higher costs for essential goods and potential layoffs, impacting both consumers and the economy.