EL PASO, Texas (KVIA)– New tariffs between the United States and Canada could make affordability concerns worse, according to economist Tom Fullerton.<\/p>\n
\u201cHouseholds are already complaining about affordability in 2026,\u201d Fullerton said. \u201cAnd this doesn’t do anything to help matters. It exacerbates the problem a little bit.\u201d<\/p>\n
In August, the U.S. imposed a 50% tariff on more than $27 billion worth of Canadian goods.<\/p>\n
Canada responded with counter-tariffs of up to 50%, targeting about $20 billion worth of U.S. goods.<\/p>\n
Fullerton said it is important to consider how much trade is actually affected by the tariffs.<\/p>\n
\u201cThe total amount of goods being subjected to the new tariffs by both countries represents less than 3% of the total trade between both nations,\u201d he said.<\/p>\n
Fullerton said maintaining a strong trade relationship with Canada is important.<\/p>\n
Trade allows countries to exchange more goods, potentially giving consumers access to lower prices and a greater variety of products.<\/p>\n
\u201cAnd so, you know, that’s sort of the holy trinity of consumer economics and of international trade,\u201d Fullerton said. \u201cAnd the United States, Mexico and Canada achieve those objectives.\u201d<\/p>\n
The bigger concern, Fullerton said, is what could happen if the trade was continues to rage on.<\/p>\n
\u201cA trade war is very similar to a shooting war,\u201d he said. \u201cIt’s easy to get into one, but it’s very hard to extricate countries from a trade war once they’re embroiled in one.\u201d<\/p>\n
Fullerton said a prolonged trade war could ultimately hurt the economy.<\/p>\n
\u201cHigher inflation, higher unemployment and negative economic growth,\u201d he said. \u201cAnd hopefully we will avoid that. But right now, the White House is headed in that direction.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"EL PASO, Texas (KVIA)– New tariffs between the United States and Canada could make affordability concerns worse, according…\n","protected":false},"author":2,"featured_media":431624,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[138,140,139],"class_list":["post-431623","post","type-post","status-publish","format-standard","has-post-thumbnail","category-el-paso","tag-el-paso","tag-el-paso-headlines","tag-el-paso-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/431623","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/comments?post=431623"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/431623\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media\/431624"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media?parent=431623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/categories?post=431623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/tags?post=431623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}