While there is currently a 30-day pause, President Donald Trump’s sweeping tariffs on Canada, China, and Mexico—America’s largest trading partners—have already begun to rattle markets and consumers.
The policy, which imposes a 25% tax on all imports from Canada and Mexico and a 10% tariff on Chinese goods, is being framed as an aggressive move to curb migration, drug trafficking, and China’s role in fentanyl production. The U.S., Canada and Mexico have all agreed to pause planned tariffs for at least a month as negotiations over border security continue. China countered Trump’s tariffs on Chinese products with tariffs on select U.S. imports. It will also launch an antitrust investigation into Google and other trade measures.
The economic consequences are already being felt, with financial markets in turmoil and everyday Americans bracing for price hikes in critical sectors such as fuel, food and automobiles.
Financial expert Allan Boomer, a seasoned Wall Street veteran with more than two decades of experience, discussed the economic fallout in an interview with the Black Press. Boomer, who spent years advising institutional clients and managing multi-million-dollar investment portfolios at Goldman Sachs before founding his firm Momentum Advisors, assessed the current financial landscape.
“The market is bracing for an all-out trade war,” Boomer said, pointing to the deep economic ties between the United States and its neighboring trading partners.
“Mexico and Canada each send more than 80 percent of their exports to the United States, and retaliatory tariffs from these countries could have severe consequences,” he said. “The ultimate loser in this situation is the consumer. Ultimately, this results in higher prices.”
Pain already being felt
Allan Boomer with Momentum Advisors, assessed the current financial landscape.
“The market is bracing for an all-out trade war,” Boomer said, pointing to the deep economic ties between the United States and its neighboring trading partners.
“Mexico and Canada each send more than 80% of their exports to the United States, and retaliatory tariffs from these countries could have severe consequences,” he said. “The ultimate loser in this situation is the consumer. Ultimately, this results in higher prices.”
Pain already being felt
Houston author and entrepreneur Kachelle Kelly is one of those already feeling the pain of possible tariffs. In preparing for the release of her book, Boss Friends Pray, she had the terms all set, but went to pay and found the prices had soared.
“I negotiated bulk printing from Alibaba after going back and forth with four vendors. Finally found a sweet spot and contacted to order and the price was 30% more. They are preparing for tariffs. So I had to use KDP Amazon, which is much more expensive. My older books, which are printed in America, get something from China so their prices went up. I’m losing money and have to pass a bit of the price to customers,” Kelly said.
Higher prices will hurt small Black businesses.
“The Defender is among those being hurt by the tariffs,” said Defender Network publisher Sonny Messiah-Jiles. “Our printing costs immediately went up almost 40% in anticipation of tariffs. That means we’ll have to scale back production. There are many Black and Brown businesses that won’t be able to survive an increase.”
Gas prices in the Midwest have already risen by as much as 50 cents per gallon, as Canada and Mexico supply over 70% of crude oil imports to U.S. refineries. The auto industry is also seeing immediate effects, with tariffs threatening to add as much as $3,000 to the price of some vehicles.
Meanwhile, grocery costs are expected to rise, as Mexico supplies more than 60% of America’s vegetable imports and nearly half of the fruit and nut imports.
“We’re going to feel this in Black and Brown communities,” Boomer said. “Any community that spends money as a high percentage of their wealth—whether Black, white, or Latino—is going to be hit hard. But for Black and brown people, who statistically spend the most as a percentage of wealth, the impact is going to be severe.”
Facts v. fiction
Boomer questions the broader strategy behind Trump’s trade policies, noting that while the administration touts these tariffs to strengthen the U.S. economy, the reality may be different.
“This is a president who said he would strengthen the United States at the expense of our partners,” Boomer said. “But what you’re seeing is that it’s really at our own expense. We import a bunch of things—lumber, oil, tequila, avocados—and these tariffs have big knock-on effects in our economy on a day-to-day basis.”
Trump has positioned tariffs as a tool to pressure Canada and Mexico to make policy concessions. “Trump is looking to leverage these tariffs for some sort of win,” Boomer said. “For example, he’s pointing out that U.S. banks can’t operate in Canada, and he’ll try to push for some small victories, but the question is, does anyone care?”
With markets in flux and fears of an economic downturn growing, Boomer advised investors to think long-term. “You can’t invest just for today—you have to invest for tomorrow and for 10 years down the road,” he said. “Right now, we’re in a really challenging political climate, but in the next two years, with the midterms, we might see a backing off of these extreme positions.” Boomer encouraged investors to consider where they put their money. “I’d be wary of companies that are backing off their DEI (Diversity, Equity, and Inclusion) initiatives,” he said. “I just don’t think companies that aren’t inclusive in hiring are going to do well in the long run.”
He also urged investors to be mindful of who is managing their money. “Am I investing in funds managed by diverse professionals or am I turning my money over to non-diverse money managers?” he asked. “These are things people should be paying attention to in this climate.” National Urban League President Marc Morial addressed broader concerns about Trump’s policies on federal assistance, which could leave millions of Americans without critical support, including food assistance, education funding, small-business grants, and VA benefits for veterans.
“This administration’s reckless action has already stirred widespread chaos and may cause recessionary impacts such as increased poverty, job losses, and economic stagnation,” Morial said. “This is not a blueprint to ‘Make America Great Again.’ This is not putting ‘America First.’ This is leaving millions of Americans behind.”
NNPA contributed to this report.
