DETROIT (WXYZ) — Everyday Americans, including people who live in metro Detroit, already pinching pennies should brace for the cost of living to go up on everything from autos to groceries to heat and gas.
President Donald Trump won many at the ballot box by promising a better economy. But plans for tariffs on imported goods from China — with a pause on Canada and Mexico — is sparking fear.
“A lot of people are worried that the price of groceries will go up does that worry you at all?” asked WXYZ’s Carolyn Clifford.
“Yes, it does. I just went in there and bought a dinner, which back in the day would have cost $15. Right now, I paid $39, doubled it up. So him put tariffs will triple it up,” Ellery Morgan said as he left Majestic Market in Southfield.
“Are you worried about the tariffs having the cost of your groceries or even your lunch go up?” Clifford asked another shopper.
“Yeah, absolutely. I don't make a great deal of money. That's a concern of mine,” shopper David Mann said.
Related video: Canadians respond to U.S. tariff threat, Trudeau says they're postponed at least 30 days
China is being hit with a 10% tariff. Potential 25% tariffs for Canada and Mexico have been paused for a month after border security agreements among the countries.
I spoke to former Michigan Gov. Jim Blanchard, who is a former ambassador to Canada.
“Do you think talk of these tariffs could spike a trade war?” Clifford asked.
“It's hard to know. I think Mr. Trump has waged economic war against Canada and Mexico,” Blanchard said.
According to the Peterson Institute for International Economics: “The direct cost of these actions to the typical, or median, US household would be a tax increase of more than $1,200 a year.”
I spoke to Rosetta Gibson, who was out shopping with her Army veteran dad who is 84.
“I just want to know if the price of groceries goes up, if the price of gas goes up. I'm hyperventilating every day — price of gas price, of groceries, social security,” Gibson said.
"For Michiganders who are afraid right now and afraid that their cost of living is going to go up because of this what will it mean for the average citizen here watching this and nervous?" Clifford asked.
“I think our cost of food will go up and gasoline. We get a lot of vegetables and fruits from Mexico. We get a lot of grain and meat and poultry and beef from Canada and vegetables as well, so that's going to go up,” Blanchard said.
With a 10% tax on oil, natural gas and electricity from Canada, that may hurt deep into the pockets of Detroiters as well.
"Their energy provides natural gas to heat the homes in Detroit. It provides jet fuel for our airport there in Detroit. It provides home heating in the Upper Peninsula in the form of propane. The cost of living is going to go up," Blanchard said.
Related video: Proposed tariffs on Canada, Mexico paused after counties agree to tougher border security measures
Auto analyst David Zoia says the new tariffs will also affect the auto industry.
"If it's long term, the impact is huge because right off the bat, 25% tariff on vehicles from Canada Mexico and China,” Zoia said.
Zoia says you also have auto parts coming across the border from suppliers — $60 billion in auto part from Mexico and $15 billion from both China and Canada.
“Those costs will be added into cars one way or another. That will affect consumers,” Zoia said.
Zoia says it could potentially affect work at auto factories, sparking layoffs or plant closures. Many argue there will be pain as the president tries to bring back manufacturing jobs back to America and stop the flow of illegal drugs like fentanyl from crossing the border.
“Do you have a message for your President?” Clifford asked.
“Yes. Just think about the little guy, you know. We're out here working hard busting our tail to take care of our families.” Mann said. “Just think about us. Don't forget about your promise.”
