Well, businesses across New Jersey and the country are preparing for the potential impact of President elect Donald Trump's proposed tariffs on all goods coming into the country aimed at America's top three trade partners That's Mexico, Canada and China, citing border security and the influx of drugs like fentanyl as the reason for the penalties.

Now, while some political and economic experts say the taxes are more of a threat to negotiate with those countries than a reality, local business owners tell senior correspondent Brenda Flanagan they aren't taking any chances.

I feel scared.

I feel.

Anxious.

Marsha Freeh says tariffs will impact her company.

Case Medical in Bloomfield.

It buys sheet metal mainly to manufacture steel and aluminum boxes for sterile medical instruments.

Case Medical is already prepping for the president elect's recent threat to raise tariffs on the U.S. as three biggest trading partners, 25% each on Canada and Mexico and another 10% on China, which makes the massive machines in use here at Case Medical.

We're looking at whatever we can do to get spare parts.

So over the next few years.

Well, have everything that we need in order to exist and be stockpiling.

We are absolutely stockpiling so the equipment we can stockpile.

And when it comes to raw materials, that's where all the uncertainty comes into play.

Her sheet metals U.S. sourced and freeze bought enough to last through next year, but she's worried about 2026.

She's concerned about two medical contracts with Canada and she's trying to shield her 170 workers from layoffs as troubles and costs rise.

Well, everybody's going to get hurt.

Our customers are going to have delays.

And then just trickle down.

You know, that pain trickles down from the industry to the people that are working.

Freeze remembers running out of raw material during the first Trump administration's trade war with China.

It cost cash medical 15 to 20% off its bottom line.

We don't really know what the future is going to bring.

We just know what happened previously, Free says.

Part of the problem is Trump's sheer unpredictability.

She's worried that months spent planning foreign shipments could get compromised by a three and post untruth social.

On Saturday, the president elect threatened nine developing nations to keep the U.S. dollar as their reserve currency, or they'll face 100% tariffs and should expect to say goodbye to selling into the wonderful U.S. economy.

They can go find another sucker.

So the whole thing is a little messy right now, and we don't have a clear cut picture.

So part of it is meant to be like a negotiating ploy as well.

Rutgers Professor Parul Jain says Trump's using tariffs as a lever to control issues beyond trade, like immigration and drug smuggling.

But the end result?

It is going to raise inflation rates in the United States so consumers are definitely going to end up paying a lot more.

So the firms are fully expecting to pass on the price increases to the consumer.

There's no doubt in their mind about that.

A 10% tariff could raise taxes on goods by 1500 dollars a year for the typical U.S. household, including $70 on clothes, 90 bucks on food, or 120 on oil and $220 on cars.

One study predicts some businesses actually have urged folks to buy now before tariffs drive up costs.

Many of those goods arrive at New Jersey's bustling ports.

Cars, especially.

So I understand why tariffs are popular in some circles.

But I also think free trade is very important for our economy, especially on New Jersey economy.

And I do worry about anything that might make the cost of free trade more expensive.

But Jersey business analyst Chris McCall says a nuanced tariff policy could bring some benefits if it gets nations to the bargaining table.

And if we have better trade agreements that are tilting the playing field for New Jersey and American manufacturers, that's a good thing.

We're going to do our very best, you know, to keep going forward.

But the uncertainty for us and for our for the people that we employ is there nonetheless.

In the end, it'll come down to affordable, especially in an expensive state like New Jersey.

I'm Brenda Flanagan, NJ.

Spotlight News.