New tariffs could mean higher prices for everyday goods in the Coachella Valley
THOUSAND PALMS, Calif. (KESQ)- People across the Coachella Valley say their money is not going as far as it used to, as higher prices for groceries, gas and other everyday needs continue to put pressure on household budgets.
Now, new tariffs on some Canadian imports are adding another concern for consumers.
New 50% U.S. tariffs on roughly $20 billion worth of Canadian imports took effect this month. Tariffs are taxes placed on imported goods, and when businesses face higher costs, some of those costs can eventually be passed on to shoppers.
Some shoppers pointed specifically to the price of meat and other basic groceries. Federal data shows ground beef prices increased 12.4% over the 12 months ending in June, while uncooked beef steak prices increased 11.4%, according to the U.S. Bureau of Labor Statistics.
Fresh vegetable prices increased 9.9% during the same period, while pork chops increased 5.6%. Chicken prices, however, dropped 2.3%.
Those increases are not necessarily the result of the new tariffs, but they show the higher prices many consumers were already facing before the latest trade measures took effect.
Gas is another major expense. As of Sunday, Aug. 30, the average price for a gallon of regular gas in California was about $5.68, according to AAA. The national average was about $4.08.
A year ago, California’s average was about $4.60 a gallon, meaning drivers are currently paying roughly $1.08 more per gallon than they were at this time last year. AAA says high crude oil prices and continued volatility surrounding the Strait of Hormuz have helped keep gas prices elevated.
What could tariffs mean for prices?
Tariffs do not affect every product in the same way, and they do not automatically mean everything will become more expensive.
However, businesses that rely on affected imports could face higher costs. Depending on the product and company, some of those costs could eventually be passed along to consumers.
The latest trade dispute is also continuing. Canada announced retaliatory tariffs on about $20 billion worth of U.S. goods that are scheduled to take effect Sept. 8. Those tariffs will cover hundreds of American products, including some electronics, clothing, appliances and prepared foods.
