Transcript of Backlash to Trump's new tariffs and rew risk to rising prices

Tonight, President Trump's new tariffs, blasted by foreign leaders and Democrats here at home.

It's going to just do one thing. It will raise prices for American consumers.

Even as Republicans rush to the President's defense for imposing 25% tariffs on goods from Mexico and Canada and 10% on items from China.

If prices go up, it's because of other people's reactions to America's laws.

Canadian Prime Minister, Justin Trudeau, retaliating with his own 25% tariffs on US imports and speaking directly to the American people.

Tariffs against Canada will put your jobs at risk. They will raise costs for you, including food at the grocery store, gas at the pump.

And it's getting personal. Last night in an NHL hockey game in Ottawa, Canadian fans booved the singing of the US National Anthem. This morning, President Trump writing on social media that Canada should become our cherished 51st state. The President, who campaigned on promises of luring costs for Americans, also acknowledging prices could go up, posting, Will there be some pain? Yes, maybe. Security, adding it will all be worth the price that must be paid. White House officials said the tariffs will help with border security and accuse Mexico of having an alliance with drug traffickers. Mexico's President pushing back, saying we categorically reject the White House's slander against Mexican government of having alliances with criminal organizations. Mexico also says it will now implement its own new tariffs on the US. China says it's going to file a lawsuit with the World Trade Organization and take countermeasures of its own.

Yamish is joining us now from West Palm Beach in Florida, where she's traveling with the President. Yamish, it's possible President Trump isn't done yet when it comes to tariffs, right?

That's right. Yesterday, a White House official said, If any country tried to retaliate the US could increase President Trump's tariffs even more. So this trade war could just be getting started. Halley?

Yamish Al-Sindor, thank you. Let's bring in Senior Business Correspondent Christine Romans. All right, Christine, translate the politics into the everyday budget of it all, because there's a lot of stuff we import from these countries, and a lot of it will probably get more expensive.

That's right, Halley. When you look at these tariffs, they hit America's three biggest trading partners. Mexico, China, and Canada exported more than $1. 2 trillion worth of goods into the US US, just in the first 11 months of 2024. So let's start with energy. Canadian crude exports will have a smaller 10% tariff, but experts say even that is enough to add 15 to 25 cents a gallon to the cost of gasoline for US drivers. Now, let's look at autos. This trade war could add an estimated 3,000 bucks to the cost of a new car here in the US. Why? Because 42% of auto parts are imported from Mexico, 13% from Canada. All of those are about to face new costs. As for groceries, the margins on food are so razor-thin that shoppers could be looking at paying the full 25% of cost increases on everything like avocados, beer, and beef from Mexico, and chocolate, pork, and vegetable oil from Canada, Ali.

How about consumer technology, Christine? So much of that is made in China. What happens to those costs?

Look at these estimates. These are from the Consumer Tech Association. If the full tariffs are passed on to consumers, price increases could be as much as 213 bucks on a smartphone, $357 on laptops, and $ dollars more for video game consoles, Halley.

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