This Is How Donald Trump’s Tariffs Will Affect Black People

Donald Trump once said “tariff” is the most beautiful word in the English language—and persuaded his base to believe that he would use it to improve America’s economy. However, this claim is simply untrue.

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Trump put his 25 percent additional tariff on imports from Canada and Mexico and a 10 percent additional tariff on imports from China on hold for 30 days. However, he may impose them soon after. Even though he claims that his tariffs will be paid by other countries, Americans will have to deal with the consequences of higher prices.

Here are the ways that Black Americans will be hit the hardest by his economic plans.

There will be an increase in U.S. car prices

In 2023, around 17.9 percent of Black people in the U.S. lived below the poverty line according to Federal Safety Net—which is more than double the rate than our white counterparts. President Trump’s tariffs on U.S. imports from Canada and Mexico may lead to higher domestic vehicle prices and dent profit margins for automakers.

According to an analysis by S&P Global Mobility, the average $25,000 price of a car imported from Mexico or Canada may increase $6,250 if the tariffs take effect. This would make affording a car for Black people that much more difficult.

Groceries Will Continue To Be Unaffordable

In 2021, Mexico was responsible for almost two-thirds of U.S. vegetable imports and nearly half of U.S. fruit and tree nut imports, per the U.S. Agriculture Department. Tariff prices means groceries and imported items like tomatoes, peppers and raspberries will increase.

The USDA had previously found that more than 9 million Black people didn’t have access to enough food to possess a healthy lifestyle. This especially affects Black children, as one in four Black children don’t have reliable access to food.

The Cost Of Gas Will Increase

Despite Trump campaigning on a promise to lower fuel prices for American consumers with the motto “drill, baby, drill,” his impending tariffs on Canada, Mexico and China will most likely force Americans to pay more at the gas pump. Fuel prices are one of the biggest worries for working-class Black Americans, as an increase in price will disproportionately impact lower-income families who spend a higher percentage of their income on transportation.

Housing Will Be Less Accessible

America is already dealing with a housing shortage and new housing remains expensive to build. However, tariffs on building materials will only exacerbate this cost. The National Association of Home Builders stated that over 70% of the imports of two essential building materials, softwood lumber and gypsum (a component used in drywall), come from Canada and Mexico.

Black homeowners allocate more of their income on housing than other racial group, spending over 50% of their income on rent. Tariffs on housing materials would only worsen this reality.

Electricity bills would skyrocket

The American Clean Power Association, a trade group, has previously stated that it was “concerned that increasing the costs of energy production inputs will put upward pressure on consumer energy costs and diminish our capacity to unleash energy abundance.” On average, Black renters spend $273 more per year for electricity, natural gas and other home-heating fuels than similar white renters. This cost would only increase.

Consumer goods will be less affordable

According to a 2020 report from CNBC, Black buying power was $1.4 trillion in 2019 and grew to nearly $1.8 trillion by 2024. The U.S. imports various items from China—and Trump’s 10% tariff could affect more than $450 billion worth of imports. The tariff could change the cost of consumer goods like footwear, toys, video game consoles and electronics—and Black spending power will likely decrease in the process.

Beer and alcohol will become more costly

Trump’s tariffs would also result in an increase in the price of alcohol. This would include tequila, which can only be made in Mexico and the nation’s most popular beer, Modelo. Constellations Brands, which imports Modelo, Corona beer and Casa Noble tequila from Mexico may experience a 16% increase under Trump’s proposal. This good is part of the $1.8 trillion Black people spend on goods, which could decrease if libations become more expensive.