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President Donald Trump’s upcoming 25% tariffs on goods from Canada and Mexico and 10% duties on products from China are set to ricochet through households, raising prices for a wide range of items including vegetables, fruits and cars.
Economists have warned that US-based companies paying more to import products will hike prices to absorb at least some of the extra expenses.
In the worst-case scenario, when shoppers don’t substitute for US-made goods and 100% of the tariffs is passed onto consumers, it could work out to roughly $835 per person, or $3,242 for a family of four, according to ING estimates. The impact wouldn’t be felt immediately, but there will be a squeeze on spending power in the medium to long term, James Knightley, chief international economist at ING, said in note.
The tariffs are due to take effect at 12:01 am on Tuesday. Here’s a look at key imports from the three counties that could become more costly:
Vegetables and Fruits
A significant part of the fresh produce Americans consume come from across the border. About half of vegetables and 40% of the fruits the US imports are from Mexico. On top of supplying over 90% of the avocados Americans eat, the Latin American country is the top foreign provider of bell peppers, cucumbers and squash.
Tequila
Alcoholic beverages accounted for nearly a quarter of all US imports from Mexico in 2023. Four in five beers that enter the US from abroad come from south of the border, so do half of all hard liquor the country imports — mainly tequila and mescal. Canada is also a top supplier of distilled spirits including liqueurs and whiskey.
Cars
Nearly half of US imports of auto parts come from Canada and Mexico, and American brands are particularly reliant on those products. When it comes to specific products like air bags and seat belts, nearly 80% of the ones the US import come from its North American neighbors. In addition to that, half of US imports of assembled cars come from the two countries.
“Tariffs on these goods mean the US would effectively be tariffing itself,” Bloomberg Economics’ Nicole Gorton-Caratelli wrote in a note on Jan. 21. “US carmakers in particular – a long-held symbol of American manufacturing – would feel considerable pain.”
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