DETROIT (WXYZ) — We shot this story right on the Detroit river, which separates Detroit from Canada. Even though it feels like we could throw a rock and hit Canada, the tariffs going into effect tomorrow mean everything coming across this short distance is about to go up.
"So it's on everything?" Detroiter Jaelin asked.
Yes: Everything that comes from Canada, Mexico and China will cost more. We're a day out from President Trump's tariffs taking effect, with the White House saying imports from Mexico and Canada will go up 25 percent and China's go up 10 percent. But some people we talked to are still a little foggy on what that means.
"They're taxing them instead of us right?" Jaelin asked.
"No," replied 7 News Detroit's Brittany Toolis.
"So we still get taxed?" Jaelin asked.
"Yes, the company buying the goods has that 25 percent increase, that's how tariffs work," Brittany replied.
"So these don't effect taxes at all?" Jaelin asked.
"No, taxes and tariffs are two completely different things," Brittany replied.
"Oh hell naw," Jaelin said. "You all threw me off now."
University of Michigan's Dr. Betsey Stevenson explaining further how it'll impact the economy.
"And it’s not jut consumers but also businesses that might be making those purchases," Dr. Stevenson said. "Companies are going to have to rethink how they manufacture things and what it’s going to look like if it needs to cross a boarder because you’re going to have to take a quarter of the value and send it off to the government."
And here in Michigan, that border crossing happens frequently.
"It over to Canada for them to do a little bit more and send it back to us (1;43) well now every time it crosses that boarder we got to add 25 percent to the price," Dr. Stevenso said.
Energy coming from Canada has a lesser 10 percent tariff, which means high gas prices and car prices going up. You'll also be paying more at the grocery store; fruits, veggies, beer, wine and spirits are where we'll see those hikes.
"That just means I got to prepare. Got to get more money," said Elijah Champman
Residents are saying at this point, all they can do is pay up.his to me
"What am I going to do, protest? Not buy groceries?" Jaelin asked. "What you want me to do, call Trump and tell him to stop? If I could call Trump and kick it with him, like, 'explain this to me, big bro' but I can't do that. So I got to do what I know how to do."
In retaliation for these tariffs, Canada has also implemented its own 25 percent tariffs. The first round goes into effect on Feb. 4 as well.
