President Donald Trump launched a trade war on Monday, slapping Canada, Mexico and China with tariffs.
Now, Canada and China are retaliating with their own tariffs on U.S. products.
Many economists say the chaos is creating a black cloud over the stock market, leaving consumers caught in the middle to pay the price.
The tariffs have had a serious impact on the stock market, wiping out post-election gains. The National Retail Federation is warning consumers could pay more for everything from alcohol to toys.
Many taxpayers like Mick Wagner of Fort Myers believe the impact of the tariffs will be short-lived. His brother Dave disagrees, arguing that taxpayers will bear the burden of the costs.
FGCU Economist Dr. Amir Neto heads the school’s Regional Economic Research Institute and calls the tariffs a tax on consumers.
“As we go to the grocery stores, we can anticipate some of that will be passed onto consumers,” Neto said.
Prices on beer, avocados and even orange juice could rise.
“There has been a decline in the production of oranges and citrus in Florida overall,” Neto stressed.
Disease and hurricanes were blamed for the decrease. Estimates show that nearly 10% of the orange juice sold in the U.S. comes from Mexico.
“If you're really good at doing something, you should invest in that and do that and let your partner do what he's very good at what he can do, and then you trade. By doing that, everyone is better off,” Neto explained.
President Trump is expected to address the tariffs decision Tuesday when he addresses the nation and Congress during the State of the Union address.