U.S. consumers are being warned to brace for higher prices after President Trump today pulled the trigger on 25% tariffs for goods imported from Canada and Mexico.

The white House also doubled the tariff on all Chinese imports from 10 to 20%, a move the administration says is necessary to stem the flow of fentanyl into the country.

But one that experts say threatens to weaken the U.S. economy and rattle global markets.

China and Canada immediately retaliated, slapping their own tariffs on billions of dollars of American goods over the coming days.

Everything from fresh produce to cars and car parts, along with electronics, will hit your wallet harder.

Mexico says leaders there will announce the country's own retaliatory measures on Sunday, making an all out trade war with some of the United States closest trading partners more likely at a time when inflation remains stubbornly high.

For more on how it'll affect you, I'm joined by Michele Siekerka, the president and CEO of the new Jersey Business and Industry Association.

Michele, good to talk to you.

Which businesses in New Jersey and also within your membership stand to feel the most impact from these tariffs in both the short and long term?

Well, certainly, manufacturing, manufacturing by nature oftentimes needs component parts for items of the things that they are producing or making that they can't get here in America.

So they have no choice but to default to bring that in from outside of the country.

But let me also say, Brianna, the export industry here in the state of New Jersey is very rich and a big part of our economy.

In 2023, $433 billion in exports made a part of our economy here.

That's over 20,000 companies in about 20% of New Jersey.

Jobs are supported by the export industry.

So something we want to keep in mind and that's certainly going to be impacted.

One other area that's going to be impacted is if we see that there are reciprocal tariffs back in retribution, agriculture, and we should keep an eye on that as well.

Yeah, which we've already heard from Canada.

Will be the case and Mexico likely.

Right.

I mean, have you heard Michel from any of your members who are saying, hey, the cost of goods are going to go up for us, and in turn, there could be a price hike for our consumers.

Yeah.

I mean, that is absolutely the concern.

You know, at the front end.

But I will tell you that we also have companies here and manufacturers as well that are saying, you know what, this may be some short term pain for some long term gain.

We have to look and be a little bit neutral on what the longer game might be relative to tariffs and what that might being mean for reinvestment here in new Jersey, and especially if there's going to be reinvestment back into America, we want to make sure it comes back to New Jersey.

And I think that's an interesting point.

What are folks seeing as a potential long term gain?

I think what's going to be really important in the long term is our ability to balance what might be the impact of this on the negative side with, for example, incentives, to come back and grow here in our country and in the state of New Jersey.

And also, I think that we also will be seeing, continuation of the Jobs Cut Act.

This is really important, the tax and job cut act of the federal level.

This is a way that the president can neutralize the impact of tariffs.

And I think we're going to need to advocate and make sure that for the continuation of that, because that will help to offset any of these immediate losses that people have.

So the more we can look at tax cuts.

And let me also say regulatory reform, you know, this is like a three legged stool for for the United States.

We need to maintain tax relief.

We need to have regulatory reform.

And we also hear the president talk about energy dominance.

And we know energy has a lot to do with cost, right.

My wondering then, Michele, are there items within this most recent budget, that you could see as incentives or as counter, to what would be needed or where would you like this administration to look, given now this climate?

Well, I certainly would like us to continue to look at incentivizing manufacturing here in New Jersey.

You know, we're concerned that the manufacturing voucher program was zeroed out in this budget.

We do see that there is money set aside for some type of a new program for manufacturing.

We're waiting to get details on that.

But it's important that given the dynamics at the federal level and so many moving targets right now, that we make sure that we can shore up and sustain and ensure future job creation here in the state of new Jersey by way of attraction and retention.

From members within your organization, how are they sort of navigating this whenever you have a lack of predictability or certainty, it's very difficult to navigate.

So we need to have contingency set up.

We need to be prepared for every scenario.

You know I do think what we've seen so far from this administration at the federal level, they come in big and bold, right?

They throw the big smoke bomb in the middle of the room, the smoke goes up.

Everybody gets very, very excited.

And then oftentimes things do winds up being stepped back a bit.

That's his art of negotiation if you will.

And then sometimes the policy comes sometime thereafter.

So I think, you know, my message to the business community has been, let's try to not get our hair on fire so fast and be too reactive.

Let's keep thinking long term.

Let's have contingency plans on tariffs.

What that means if you see that you're going to have to buy, you know, a large piece of equipment from outside the country in the near future, start looking for the exception and start seeing regulatory, how you go in with the right paperwork to get an exception for that tariff to get an exclusion.

Work smarter, not harder.

Michele Siekerka is the CEO and president of the New Jersey and NJBIA Business and Industry Association.

Michele, thanks so much.

Thank you Brianna.