US consumers to suffer price hikes after tariffs, says Mexican business group

MEXICO CITY -- Consumers in the United States will experience higher prices of essential goods, ranging from automobiles to food, following the US government's decision to impose tariffs on imports from Canada and Mexico, a Mexican business group warned Tuesday.

In a statement, the Confederation of National Chambers of Commerce, Services and Tourism (Concanaco Servytur) said that the 25 percent tariffs, which took effect on Tuesday, challenge the principles of free trade and the agreements of the World Trade Organization (WTO) and that the measure threatens North America's economic stability, increases market uncertainty, and poses risks for both consumers and producers.

"From the American perspective, tariffs may appear to be a strategy to protect local businesses from foreign competition, but in practice, they generate adverse effects," it said.

US companies that depend on Mexican supplies, such as those in automotive and manufacturing industries, will see an increase in production costs, which will lead to higher prices of the final products, transferring the burden of the tariffs to consumers, it noted.

The group added that the measure could place additional pressure on the purchasing power of the US population, while inflation "is already a significant problem."

"In general terms, tariffs could be counterproductive for the US economy, as they discourage trade, reduce business competitiveness, and negatively impact consumer welfare," it said.