New Tariffs on Canadian and Mexican Goods: How They Affect Average People and the Economy

The United States government (Harry Bolls and Elon Musk?) recent decision to impose a 25% tariff on all goods produced in Canada and Mexico, effective March 4, 2025, has sent shockwaves through the economy. While the move is framed as a protective measure for domestic industries, its ripple effects are already being felt by average consumers, workers, and businesses on both sides of the border.

The new tariffs apply to goods valued at $800 or more, meaning everything from electronics to automobiles and agricultural products will now cost significantly more for American buyers. For sellers on platforms like eBay, the changes have prompted a flurry of recommendations to ensure compliance with customs declarations and avoid shipping delays. But the real story lies in how these tariffs are impacting everyday people—and whether the justifications for them hold water.

The Immediate Fallout

One of the first casualties of the tariff announcement appears to be the auto industry. According to MLA Danielle Smith, an auto plant has already laid off hundreds of workers, though she provided no specific details about which plant or where it’s located. Smith’s statement, while dramatic, raises more questions than it answers. Is this plant in Canada, Mexico, or the U.S.? Was the layoff directly tied to the tariffs, or is it part of a broader trend in the industry? Without concrete evidence, Smith’s claim feels more like political posturing than a factual assessment.

Smith also took a swipe at American consumers, claiming, “We were very successful at convincing Americans that taxing our products would be dumb.” While the sentiment might resonate with some, it’s worth questioning how effective such rhetoric really is. After all, tariffs are rarely about convincing consumers—they’re about protecting domestic industries, even if it means higher prices for everyday goods.

The Agriculture Sector: A Ticking Time Bomb

Where Smith’s comments do carry weight is in her warning about the agriculture sector. She highlighted the disruption of 300,000 cross-border cattle shipments and the potential impact on JBS S.A., the world’s largest meat processing company. JBS, a Brazilian multinational with significant operations in Canada and the U.S., is no stranger to controversy. From labor disputes to environmental concerns, the company has faced its fair share of scrutiny.

The Brooks, Alberta-based Lakeside Packers plant, now owned by JBS Canada, has a storied history of financial aid, labor disputes, and ownership changes. In 2004, the plant received $33 million in government aid following a BSE (mad cow disease) scare. In 2005, workers went on strike for nearly a month before securing a four-year contract. And in 2013, the plant was sold to JBS, which has since expanded its global footprint.

If tariffs disrupt JBS’s operations, the consequences could be far-reaching. Higher costs for American consumers, layoffs in Canadian plants, and potential supply chain bottlenecks are all on the table. But again, Smith’s dire predictions lack specificity. How exactly will JBS be impacted? Will the company pass costs onto consumers, cut jobs, or absorb the losses? Without more details, it’s hard to gauge the true scale of the problem.

The Bigger Picture: Who Really Pays?

Tariffs are often sold as a way to protect domestic industries and create jobs. But in reality, they’re a tax on consumers. When the cost of imported goods goes up, businesses either pass those costs onto buyers or cut corners elsewhere—often in the form of layoffs or reduced wages. For average Americans, this means higher prices on everything from cars to groceries. For Canadian and Mexican workers, it means uncertainty and potential job losses.

eBay’s recommendations to sellers—ensuring accurate item locations, including Harmonized Tariff Codes, and preparing for customs delays—highlight the bureaucratic nightmare that tariffs create. While eBay has promised to mitigate the impact by adjusting seller metrics and addressing buyer complaints, the broader economic consequences are harder to solve.

Questioning the Rhetoric

MLA Smith’s comments, while attention-grabbing, underscore the need for clarity and evidence in discussions about trade policy. Tariffs are complex, and their effects are rarely as straightforward as politicians make them seem. While it’s easy to blame foreign producers or boast about “convincing Americans,” the reality is that tariffs hurt everyone—consumers, workers, and businesses alike.

As the situation unfolds, one thing is clear: the true cost of these tariffs will be borne not by governments or corporations, but by average people trying to make ends meet. Whether the benefits will outweigh those costs remains to be seen—but for now, the outlook is anything but optimistic.

Stay tuned for updates as this story develops.