From beer to gasoline: Here's what will get costlier in the US if Donald Trump imposes new tariffs

If President-elect Donald Trump imposes the sweeping tariffs he’s threatened on imports from China, Canada, and Mexico, a variety of everyday goods in the United States could see a significant price hike. Trump has specifically indicated he would impose a 25% tax on all products entering the U.S. from Canada and Mexico, and he may extend this to China. This could have far-reaching economic implications, driving up costs for consumers on everything from fresh produce to gasoline.

When Trump implemented higher tariffs during his first term, other countries retaliated with their own duties, escalating trade tensions. For instance, Canada announced billions in new tariffs in 2018 in response to U.S. taxes on Canadian steel and aluminum. Some U.S. products affected were strategically chosen, like yogurt, which is largely sourced from Wisconsin, Paul Ryan’s home state. Similarly, whiskey from Kentucky and Tennessee was also targeted. If Trump follows through on his new tariff threats, many common items could become much more expensive for U.S. consumers.

Here's what will get costly if Trump imposes tariffs on imported items

Wiring for Cars, Ships, and Planes: The U.S. imports $605.3 million worth of wiring, which is essential for manufacturing in sectors like automotive, aerospace, and shipping. Higher tariffs on these imports would increase production costs for these industries, potentially raising the final price for consumers, according to a report of USA Today.

Fruits and Vegetables: The U.S. imports a significant portion of its fresh fruits and vegetables, with Mexico being the leading supplier of tomatoes, avocados, raspberries, bell peppers, and strawberries. In 2022, Mexico accounted for 69% of U.S. vegetable imports and 51% of U.S. fresh fruit imports. A tariff on these imports could cause prices to surge for consumers reliant on fresh produce.

Beer: Popular beers like Corona and Modelo, which are imported from Mexico, could become more expensive due to tariffs. Given that these beers are staples in the U.S. market, a price hike could impact a large number of consumers.

Consumer Electronics: Tariffs on electronics from China could reduce American consumers' spending power by as much as $90 billion. Items such as laptops, tablets, smartphones, video game consoles, and other electronics could see steep price hikes, with some products like laptops and tablets potentially increasing by up to 45%. For smartphones, the average price could rise by $213 per device, CBS claimed quoting the Consumer Technology Association.

Footwear: Nearly 99% of footwear sold in the U.S. is imported, with over half of it coming from China. A tariff could push up prices for everyday footwear, affecting consumers across the country.

Home Goods and Furnishings: Companies like Ikea and smaller home goods retailers have warned that the tariffs would force them to raise prices. This could make furniture, home decor, and other essential items more expensive for American families.

Gasoline: A major concern for American drivers is the potential rise in gasoline prices. Adding a 25% tariff on Canadian oil imports could push gas prices up by 30 to 40 cents per gallon, potentially reaching 70 cents more per gallon within just days of the tariffs being implemented, CBS News claimed. This could result in a sharp increase in fuel costs for consumers across the country.