A tariff, or tax on imports, is nothing new but since the start of his second term, President Donald Trump has wasted no time announcing tariffs on Mexico, Canada and China and most recently adding a 25% tariff on steel and aluminum imports.
According to the Trump administration, the goal is to ensure that American steel producers can compete on a level playing field.
“It will help the domestic industries some but the prices of those washers and dryers will go up," said Cal Poly Economics professor Dr. Dan Seiver. "Most of the cost of the tariff is borne by American consumers.”
Seiver has been teaching economics at the college level for almost 50 years and sees increased tariffs as a detriment to the American consumer.
“Anything we consume that's made with steel and aluminum, it's going to cost more," he said. "The other way it's going to hurt is we export stuff.”
The tariff on aluminum and steel means that one of California’s biggest imports, motor vehicles, will likely see increased prices.
Cody Akers, Finance Manager at McCarthy’s used car dealership in San Luis Obispo, explained that as new car prices go up, the used car business sees a boost.
“If the manufacturer decides to pass this on to the consumer, new car prices go up and people start looking to used cars," Akers explained. "The market goes up, kind of like you saw during COVID.”
But while their business may see increased traffic, others are worried.
“California's builders are deeply concerned about the impact of these and related tariffs, which are expected to significantly increase construction costs,” said Lindy Hatcher, Executive Director of the Home Builder’s Association of the Central Coast. “We remain concerned about both the immediate impact and long-term effects of these tariffs on California's housing crisis and the broader construction industry."
“We're in a position where we import a lot more than we export," Seiver stated. "By saying we're going to try and keep out imports and that's going to help will end up hurting our exports.”
Last week, President Trump imposed a 10% tariff on Chinese imports to the U.S. but suspended his 25% tariffs on imports from Mexico and Canada until at least March 1.
