Metro Detroit businesses brace for Trump tariffs on Canada, Mexico starting Tuesday

Businesses brace for Trump's tariff enforcement on Canada, Mexico

Some dealerships said they were seeing higher foot traffic with consumers anticipating higher prices.

SOUTHFIELD, Mich. (FOX 2) - All eyes are on Washington DC as President Donald Trump's administration vows to impose tariffs on imports from Canada and Mexico, starting Tuesday.

It’s a decision that may impact what you buy, how much you spend to eat and whether you can afford to purchase a new car.

"The hope is that something is going to happen between now and then that could avoid this," said George Glassman,

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President of Glassman Automotive Group. "The fear would be that we would see higher prices as a result not necessarily because vehicles are being produced in Canada - but because a lot of the components like aluminum and steel are coming from there."

Trump has championed the tariffs as a punishment toward Mexico and Canada to better police fentanyl trafficking and stop illegal immigration. A secondary motivation he has said, is correcting the trade imbalance with hopes that corporations move factories back to the US.

Car dealerships are not the only ones voicing concerns.

"From my suppliers they are telling me  to get ready things could go up, especially disposable stuff, like cups and napkins, plates, aluminum. A lot of that stuff believe it or not comes from Canada," said Ali Chaalan, owner of Kays Food Supply.

Chaalan's business supplies Detroit area restaurants with much-needed items from disposable goods to frozen foods. He says if his prices go up, he’ll have to pass those costs on.

"In the short term it’s going to be very bad for business owners and consumers," he said. "I really don’t want to have to raise the prices on people but if I have to, what am I going to do? I have to survive too."

The Trump administration also sees tariffs as a driver for corporations to re-invest in the US. Commerce Secretary Howard Lutnick said Monday that the large Taiwanese computer chipmaker TSMC had expanded its investment to the tune of $100 billion in the United States, because of the possibility of separate 25% tariff.

Trump's announcement - coupled with existing inflation concerns, shook the U.S. stock market, with the S&P 500 index down 2% in Monday afternoon trading. Critics point toward the possibility for increased inflation from the dependency of Mexican and Canadian products in the US.

Some dealerships said they were seeing higher foot traffic with consumers anticipating higher prices.

"We’ve gotten phone calls, customers are anxious also about wanting to make sure they’re purchasing or leasing their vehicle before any possible ramifications from tariffs," Glassman said. "There’s so much trade that goes on between the US, Canada, and Mexico - it really touches every part of the economy."