U.S. Sen. Marco Rubio (R-Fla), the son of Cuban immigrants, is poised to become the nation’s chief foreign affairs advisor as President-Elect Donald Trump’s top pick for Secretary of State.
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The news of Rubio’s appointment came as welcome news to some Republican analysts.
“Rubio also, arguably, has at least some of the credentials and qualifications necessary for the position of secretary of state,” said Susan Del Percio, a Republican strategist and political analyst, writing for MSNBC. “Currently, Rubio serves as vice chairman of the U.S. Senate Select Committee on Intelligence and is a senior member of the Committee on Foreign Relations.
Nevertheless, the global becomes the local, as foreign affairs can often affect how much you pay for everyday items. Here are three ways Marco Rubio’s appointment as Secretary of State can impact your wallet.
Paying More for Imports
President-elect Trump has promised to impose a 25% tariff on all Canadian and Mexican imports, and an additional 10% tariff on Chinese imports when he takes office.
“While Rubio may provide counsel and execute key strategies, the ultimate foreign policy agenda will reflect Trump’s priorities,” said Mark Malek, chief investment officer at Siebert.
Malek explained, “Given the aggressive foreign policy focus of Trump’s campaign and his historical approach, we can expect a packed agenda for the next four years. His hawkish stance on China, combined with the President-elect’s similar position, suggests that tariffs and trade restrictions are almost a certainty.”
In addition, Malek said that while tariffs and trade restrictions are strategies to level the playing field for U.S. manufacturers, they have other consequences.
“Historically, tariffs have increased costs for manufacturers reliant on imports, such as electronics and machinery producers,” Malek said. “Many of those costs are ultimately passed on to consumers. This can create inflationary pressures in the mid- to long-term.”
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Driving Up Energy Prices
As U.S. Senator, Rubio has taken hardline stances on Russia and Iran, which are among the most oil-rich countries in the world, according to data from the U.S. Energy Information Administration.
Malek said Rubio was an “outspoken critic” of Vladamir Putin, supported strong sanctions on Iran, and was a vocal opponent of the JCPOA (Joint Comprehensive Plan of Action). The JCPOA is a landmark accord signed in 2015 by Iran and other countries, including the U.S., and placed significant restrictions on Iran’s nuclear program in exchange for sanctions relief.
“Energy markets will likely see continued volatility under the new administration,” particularly with Rubio and Trump’s tough stance on Iran. “Both have been vocal about taking a harder line with oil producers like Venezuela and Brazil, which together account for about 5.5% of global crude production.”
Malek said expanding trade sanctions or increasing diplomatic tensions with top oil-producing countries could add instability to global markets and potentially increase energy costs for households.
“However, these policies may pave the way for increased U.S. crude production, which could eventually moderate prices by increasing supply,” Malek said. “However, any transition period is likely to be marked by instability and higher costs.”
Mixed Outcomes
Nevertheless, Rubio’s appointment as Secretary of State could have mixed results in terms of investing and retirement savings.
“Rubio’s and Trump’s policies are also likely to strengthen the U.S. dollar, as global investors view the U.S. as a stable economic haven,” Malek said. “While a stronger dollar increases purchasing power for U.S. consumers buying imports, it also makes American-made goods more expensive abroad, reducing competitiveness and cutting into foreign earnings for U.S. companies.
Malek explained, “This dual-edged dynamic could have wide-ranging implications for trade-dependent industries.”
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This article originally appeared on GOBankingRates.com: 2 Ways Marco Rubio as Secretary of State Could Impact Your Wallet
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