News 4: Trump's tariffs spark trade war, impact felt in Nevada (News 4 & Fox 11)

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by News 4 & Fox 11 Digital Staff

President Donald Trump's tariffs on Mexico, Canada, and China have taken effect, sparking a trade war with the United States' three largest trading partners. The tariffs aim to pressure these countries to prevent fentanyl and undocumented immigrants from entering U.S. borders.

President Trump imposed a 25% tax on Mexican and Canadian imports, with a 10% exception on Canadian energy, and doubled last month's tariff on China to 20%. In retaliation, Beijing has placed tariffs of up to 15% on a wide array of U.S. farm exports, while Canada plans to impose tariffs on more than $100 billion of American goods.

Jeremy Aguero, principal analyst at Applied Analysis, said the tariffs will have a broad impact in Southern Nevada. "We think about the state like Nevada, we don't manufacture a whole lot here. We have all kinds of things that are brought in from other states, but also all over the world," he said.

Aguero noted the potential for increased costs in groceries, housing, and transportation. "If those consumers start feeling like things are going to be a little more difficult six months from now, then they change their spending today," he said.

The U.S. imports significant items from China, including medicine, cosmetics, and electronics, as well as lumber and steel from Mexico and Canada. Mexico also supplies dairy products, eggs, fruit, paper products, and meat, while Canada exports wood, aluminum, cotton, and alcohol.

Hassan Chaudhry, real estate development officer for the Neighborhood Housing Services of Southern Nevada, said contractors are already feeling the impact of the tariffs. "I heard from one of the subcontractors last week, that they're buying a lighting package out of China, and they're already trying to add 10 to 20% additional cost of materials," he said.

Experts predict car insurance rates will likely increase as well. However, Aguero suggested the tariffs could have a positive impact in the long term. "There's a general belief that if the president, and what he's working on gets a better trade deal for the United States, that could end up lowering the cost of things. In addition to that, it could also mean more jobs in the United States, and most notably manufacturing jobs," he said.

Aguero added that Nevada is well positioned for manufacturing due to its ability to attract and retain expanding companies. He advised consumers not to change their normal spending habits unless they were already spending beyond their means.