Here’s Everything That Could Cost More With Trump’s Tariffs
President Donald Trump is playing hardball with our nation’s largest trading partners, imposing new tariffs on Mexico, Canada and China in an effort to staunch the flow of drugs and illegal immigrants.
Whether you approve of his motives or not, few dispute that the new tariffs — additional taxes imposed on foreign importers — could be passed on to consumers, raising prices that are already painfully high.
Things like cars, food, gasoline, and building materials could all get more expensive, depending on how things play out. (The tariffs were set to start Feb. 4, but only the 10% tariff on Chinese imports has actually taken effect. Leaders in Mexico and Canada have managed to get a 30-day reprieve from the 25% tariffs imposed on their countries by pledging to prioritize Trump’s border control concerns.)
The looming trade war is a fluid situation loaded with caveats, but in the meantime, your wallet hangs in the balance. So we scoured government and industry sources as well as credible news sites to come up with a comprehensive list of items that could become harder to afford:
New Homes – More than 70% of U.S. imports of two key building materials — softwood lumber and the gypsum used for drywall — come from Canada and Mexico.
New Cars – Not only are many cars manufactured abroad, but billions of dollars worth of the components that go into them come from Mexico, Canada and China. The tariffs could add roughly $3,000 to the sticker price of cars and trucks.
Food – Your grocer’s produce aisles are likely stocked with avocados, tomatoes and strawberries from Mexico. In 2023, Mexico accounted for 63% of the vegetables and 47% of the fruit and nuts imported into the U.S. We also import billions of dollars worth of agricultural products from Canada, including meat and grains. And then there’s maple syrup. Canada produces 70% of the global supply.
Liquor and Beer – The party won’t be over, but it will cost more to throw. Mexico’s Constellation Brands, which makes Modelo and Corona beer and Casa Noble tequila, could raise prices by 4.5%.
Prescriptions – The U.S. relies heavily on pharmaceutical imports, especially for lower-cost generic prescriptions. Many drug ingredients come from China and India. Tariffs could not only raise the price of prescriptions, but deepen shortages of these drugs, industry groups warn.
Cans and Appliances – Canada and Mexico are among this country’s largest suppliers of steel and aluminum, which means everything from food and beer packaging to appliances and equipment could get more expensive. Steel costs feed into construction and oil production too.
Gasoline – Canada and Mexico supplied 71% of the crude oil that the U.S. imported in 2023. Nearly 60% was Canada alone. This means pump prices could go up with tariffs, though maybe just temporarily. (Trump’s 25% tariff order on Canada provides a partial exception to energy products — they would have a 10% duty, rather than the full 25%.)
Electronics – China is the top supplier of electronics to the U.S. That means cellphones, computers and other gadgets could get pricier as the Chinese tariffs work their way through the supply chain. Apple assembles most of its products in China. And about four in 10 third-party sellers on Amazon reportedly source their products through China.
Related Reading
• Trump’s Tariffs Are a $1.4 Trillion Gamble With the Economy and Prices (CNN)
• Trump Administration’s New Tariff Policy Leaves Markets Uncertain. Investors Should Focus Their Strategy on the Long Term (J.P. Morgan)
• Inside the Chaotic Run-Up to Trump’s Tariff U-Turn (The Wall Street Journal via MSN)
photo credit: Image credit: Bernie Pesko/SoFi Source: Adobe Stock
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