Americans know that the tariffs announced by Donald Trump will increase prices, but they support them anyway

– We are going to impose tariffs on them – announces Donald Trump, president-elect. This is a harbinger of a trade war. The first victim will be the American consumer. – This will raise prices – warns Mary Lovely of the Peterson Institute for International Economics.

Donald Trump announces that on his first day in office, i.e. January 20, he will increase tariffs by an additional 10 percent on products from China. In addition, it will impose tariffs of 25 percent on all goods imported into the United States from Mexico and Canada.

The reason for introducing tariffs, as the president-elect explains in his post, is to encourage these countries to stop the inflow of illegal immigrants and drugs.

“These tariffs will remain in effect until drugs, especially fentanyl, and illegal aliens stop invading our country,” Trump wrote.

Canadian Prime Minister Justin Trudeau immediately reacted to the announcement and held a telephone conversation with Donald Trump. – It was a good conversation. We have discussed the facts and we can move forward in a constructive way. It's a two-way relationship that needs some work. And that's what we intend to do, said Justin Trudeau.

READ ALSO: “A disaster for the automotive sector.” Prices down after Trump's announcement

Mexico, Canada and China are the United States' most important business partners. Americans import most of their cars and car parts from Mexico.

– The main exporters from Mexico to the United States are General Motors, Stellantis and Ford Motor Company. (…) Why impose tariffs on them that expose them to risk? This is unacceptable and would cause inflation in America and Mexico and job losses, said Mexican President Claudia Sheinbaum.

Canada is the largest supplier of oil and natural gas to Americans. In turn, a lot of electronics comes to the American market from China.

– Let's assume I have a company and a new duty appears. Now I have to make a decision as a company: do I pass on the additional costs to the consumer or shoulder them? If I take it on myself, my company's profitability will drop and its share prices will drop. I don't think anyone would decide to do that, says Jill Schlesinger, a market analyst at CBS News.

Some companies producing in China have already decided that in order to avoid Trump's tariffs, they will move production to, for example, Cambodia or Vietnam. Small business does not have such opportunities.

– There is really no easy solution other than passing these costs on to consumers – says Ryan Zagata, a bicycle importer from China.

Edwin Hernandez has a shop and two restaurants. Sells and serves original Mexican food products.

– I would say that 40 percent of what we use in the kitchen and import for sale are imported goods. So these tariffs will definitely affect us, warns Hernandez.

According to a YouGov poll for CBS News, Americans still largely support Donald Trump's proposed tariff policy. Interestingly, they know what this entails.

– This is amazing. There are many arguments: if only people knew that tariffs would raise prices, they would be against it. NO. Nothing like that. Most respondents in the same poll who support tariffs know they will increase prices. Only 18 percent of respondents say that tariffs will lower product prices. “So Americans know that tariffs mean inflation, but they still say it's a good idea,” said Harry Enten, a data analyst at CNN.

If the future president's announcements become reality from January, economists will see a decline in the growth rate of the American economy over the next few months.

– It's not going to look like we're going to fall off a cliff and into a recession because the economy is growing now. This year we are growing at a rate of, say, two and a half percent. Perhaps because of these tariffs, economic growth will drop to two percent, two and a quarter next year, says Jill Schlesinger.