El Paso, Texas – A new round of tariff policy between the United States and Canada is raising concerns among local economists about affordability for American families. Tom Fullerton, an economist based in El Paso, warned that the recent 50% tariff on more than $27 billion of Canadian imports, and Canada’s retaliatory tariffs on about $20 billion of U.S. goods, could add pressure to already‑tight household budgets.
Small share of trade, big impact on prices
Fullerton emphasized that the goods subject to the new tariffs represent “less than 3% of the total trade between both nations,” suggesting the direct volume is modest. However, he cautioned that even a limited scope can ripple through supply chains, leading to higher consumer prices. “Households are already complaining about affordability in 2026,” he said. “And this doesn’t do anything to help matters. It exacerbates the problem a little bit.”
Potential economic fallout
The economist warned that a prolonged tariff conflict could lead to “higher inflation, higher unemployment and negative economic growth.” While the United States and Canada have historically enjoyed a close trade relationship that benefits consumers with lower prices and product variety, Fullerton likened a sustained tariff conflict to a “shooting war” – easy to start, hard to exit.
Why the relationship matters for Texans
Fullerton noted that the United States, Mexico, and Canada form a North American trade triangle that supports a broad range of goods for Texas shoppers, from automotive parts to agricultural products. Maintaining a strong trade relationship, he argued, is essential for keeping shelves stocked and prices competitive.
Looking ahead
While the current tariff levels affect a relatively small slice of total trade, Fullerton urged policymakers to seek a swift resolution. “And hopefully we will avoid that,” he said, referring to the risk of a deeper economic slowdown. He called on the White House to pursue diplomatic channels that could restore the pre‑tariff flow of goods, protecting both the national economy and the everyday budgets of families in El Paso and across Texas.
For now, consumers in the region should monitor price changes on items that historically rely on cross‑border supply chains, and consider budgeting adjustments as the tariff dispute unfolds.
Original reporting: El Paso News (HLL/CB) — read the source article.
