South Florida business owners are preparing to raise prices when Trump’s tariffs come into force – NBC Miami

Robert Gavanter has been running M&M Liquors in Hialeah for decades.

“Just the wrong notion that it will just be 25%,” said Givanter, standing in front of his tequila display.

He said Trump’s tariffs would force him to increase the price of the popular spirit from Mexico.

“The importer and the distributor will also mark up on their increased costs, so the final increase in the user’s pocket will probably be more like 40%to 50%, not just 25%,” said Givanter for Tequila prices.

President Donald Trump has imposed 25% rates for Mexican and Canadian goods and 20% for products from China. This creates a long list of products whose prices could potentially increase, including cars and avocados from Mexico, auto parts and electronics from China, along with timber and raw oil from Canada.

Dr. Albert Williams, chairman of economics at the University of New Southeast, says tariffs are a proposal for loss.

“The whole economy we are studying says that tariffs will lead to an increase in prices on both sides, so we have spent the last 50 years in an attempt to reduce tariffs,” Williams said.

In his first term, Trump has agreed to a free trade contract with Canada and Mexico to replace Nafta, and tweets: “Great reviews for the new USMCA, thank you! Mexico and Canada will be wonderful partners in trade (and more) long in the future. “

Now Mexico and Canada are imposing retaliatory tariffs against the United States.

“The United States has launched a trade war against Canada, their closest partner, their closest friend, at the same time talking about work positively with Russia, with Vladimir Putin, a false, killer dictator; Do this with meaning, “said Canadian Prime Minister Justin Trudeau.

House spokesman Mike Johnson, a strong trump ally, says the tariffs are intended to balance the scale of trade.

“Just have a little patience with this, let’s play, see how it develops and I think at the end of the day America will be better, American consumers, American families and all of us as a nation and as a people,” Johnson said.

Returning to the alcohol store, I asked Givanter if he did not need to convey higher prices to his customers soon.

“I absolutely do not want, but this is capitalism,” he said.

D -R Williams said that the consumer would not notice an immediate price increase, as it takes time to make the tariff costs to make their way through the supply chain, but the perishable products like Avocados will see the increase more than something like tequila, as there are already many tons of tequila, which already in warehouses in the United States.