President Donald Trump’s sweeping tariffs on Canada, China and Mexico — America’s largest trading partners — have already begun to rattle markets and consumers.
The policy, which imposes a 25% tax on all imports from Canada and Mexico and a 10% tariff on Chinese goods, is being framed as an aggressive move to curb migration, drug trafficking, and China’s role in fentanyl production.
However, the economic consequences are already being felt, with financial markets in turmoil and everyday Americans bracing for price hikes in critical sectors such as fuel, food, and automobiles.
Financial expert Allan Boomer, a seasoned Wall Street veteran with more than two decades of experience, discussed the economic fallout in an interview with the Black Press.
Boomer, who spent years advising institutional clients and managing multi-million-dollar investment portfolios at Goldman Sachs before founding his firm Momentum Advisors, assessed the current financial landscape.
“The markets are constantly moving,” Boomer said. “The Dow was down a bunch earlier today, but it’s already rebounding somewhat. Still, what the market is really bracing for is an all-out trade war.”
Boomer pointed to the deep economic ties between the United States and its neighboring trading partners.
“Mexico and Canada each send more than 80% of their exports to the United States, and retaliatory tariffs from these countries could have severe consequences,” he said. “The ultimate loser in this situation is the consumer. Ultimately, this results in higher prices.”
Gas prices in the Midwest have already risen by as much as 50 cents per gallon, as Canada and Mexico supply over 70% of crude oil imports to U.S. refineries. The auto industry is also seeing immediate effects, with tariffs threatening to add as much as $3,000 to the price of some vehicles. Meanwhile, grocery costs are expected to rise, as Mexico supplies more than 60 percent of America’s vegetable imports and nearly half of its fruit and nut imports.
“We’re going to feel this in Black and brown communities,” Boomer said. “Any community that spends money as a high percentage of their wealth — whether Black, white or Latino — is going to be hit hard. But for Black and brown people, who statistically spend the most as a percentage of wealth, the impact is going to be severe.”
Boomer questioned the broader strategy behind Trump’s trade policies, noting that while the administration touts these tariffs to strengthen the U.S. economy, the reality may be different.
“This is a president who said he would strengthen the United States at the expense of our partners,” Boomer said. “But what you’re seeing is that it’s really at our own expense. We import a bunch of things — lumber, oil, tequila, avocados — and these tariffs have big knock-on effects in our economy on a day-to-day basis.”
Trump has positioned tariffs as a tool to pressure Canada and Mexico to make policy concessions.
“Trump is looking to leverage these tariffs for some sort of win,” Boomer said. “For example, he’s pointing out that U.S. banks can’t operate in Canada, and he’ll try to push for some small victories, but the question is, does anyone care?”
With markets in flux and fears of an economic downturn growing, Boomer advised investors to think long-term.
“You can’t invest just for today — you have to invest for tomorrow and for 10 years down the road,” he said. “Right now, we’re in a really challenging political climate, but in the next two years, with the midterms, we might see a backing off of these extreme positions.”
Boomer encouraged investors to consider where they put their money.
“I’d be wary of companies that are backing off their DEI [Diversity, Equity and Inclusion] initiatives,” he said. “I just don’t think companies that aren’t inclusive in hiring are going to do well in the long run.”
He also urged investors to be mindful of who is managing their money.
“Am I investing in funds managed by diverse professionals or am I turning my money over to non-diverse money managers?” he asked. “These are things people should be paying attention to in this climate.”
National Urban League President Marc Morial addressed broader concerns about Trump’s policies on federal assistance, which could leave millions of Americans without critical support, including food assistance, education funding, small-business grants, and VA benefits for veterans.
“This administration’s reckless action has already stirred widespread chaos and may cause recessionary impacts such as increased poverty, job losses, and economic stagnation,” Morial said. “This is not a blueprint to ‘Make America Great Again.’ This is not putting ‘America First.’ This is leaving millions of Americans behind.”