Economists: Trump tariffs on major imports from Canada, Mexico, and China could cost US families $2,600 per year

MILWAUKEE (CBS 58) -- The price of gas, groceries, and goods could soon skyrocket.

On Saturday, Feb. 1, the White House will impose major tariffs on imports from Canada, Mexico, and China, and it could cost Americans a lot of money.

President Trump has called for 25% tariffs on imports from Canada and Mexico, and 10% tariffs on imports from China.

Trump and his administration think those tariffs will hurt those countries enough to get them in line with us policy. But higher costs are expected, with American consumers paying the price.

White House Press Secretary Karoline Leavitt said Friday, "The tariffs are incoming tomorrow."

And with them could come pain at the register.

Tariffs are paid by companies that import goods. Those costs are usually passed on to American consumers.

An economic think tank estimates Trump's proposed tariffs would cost US families more than $2,600 a year.

But by adding a premium to foreign goods, President Trump believes the tariffs will incentivize manufacturers to use American-made products.

From the Oval Office Friday, he said, "They cause big success, so we're going to have great success. There could be some temporary short-term disruption and people will understand that."

The White House is gambling the tariffs will hurt foreign imports enough to bring those governments in line.

Leavitt said, "Both Canada and Mexico have allowed an unprecedented invasion of illegal fentanyl that is killing American citizens and also illegal immigrants into our country."

The majority of the US's imported cars and car parts come from Mexico and total nearly $150 billion. Another $60 billion in autos and parts come from Canada.

TD Economics estimates the tariffs could cause vehicle prices to jump $3,000.

The White House says tariffs on oil and gas could come by Feb. 18. Canada provides 20% of the oil used in the US. Mexico is also a major oil supplier.

So, gas experts say prices at the pump could soar 40 cents to even 70 cents per gallon within two days after the tariffs take effect.

On Friday, Canadian Prime Minister Justin Trudeau did not back down, telling Canadian reporters, "If tariffs are implemented against Canada, we will respond. We won't relent until tariffs are removed and, of course, everything is on the table."

In Wisconsin, manufacturing is the largest sector of the state's economy.

In the Wisconsin Manufacturers & Commerce winter survey, business leaders support the tariff on China, but they oppose the tariffs on Canada and Mexico.

Virtually every sector of the economy could be impacted: tariffs on Canadian-imported lumber and plastic could raise home prices.

Tariffs on Mexican agriculture imports, like produce and beef, could raise food prices.

And China imports electronics, machinery, toys, games, sports equipment, furniture, and plastics, all of which could see markups passed down to buyers.

Still, the President is confident the tariffs will help American manufacturers in the long run.

President Trump said, "But the tariffs are going to make us very rich and very strong and we're going to treat other countries very fairly."

If Trump does not institute across-the-board tariffs, he has hinted at limited tariffs on steel, computer chips, and pharmaceuticals. Prescription drug prices in the US are already nearly three times those in other countries.