Donald Trump to impose tariffs on Canada, Mexico and China; here are the products that will get costly

The Trump administration had announced that a 25% tariff would be imposed on goods imported from Canada, Mexico, and China, starting from February 1, as per reports. These three countries are the United States' largest trading partners.

The move, according to the Trump administration, is a strategy to boost American industry. However, experts have another opinion, reported ABC News. According to experts, US shoppers might have to pay the price. Find out what is expected to increase.

Gas prices might rise

Canada and Mexico account for 70% of US crude oil imports, fueling a large percentage of the nation's gasoline supply at present, as per the report.


According to Timothy Fitzgerald, a professor of business economics at the University of Tennessee, the prices could rise between 40 and 70 cents per gallon for drivers, especially those in the upper Midwest and along the East and West coasts.

He also added that seasonal price impact could add another 30 cents per gallon, meaning that the overall rise in gasoline prices would stand at $1 per gallon if the tariffs persist during the beginning of spring, reported ABC News.

Grocery bills might hike

The tariffs are expected to impact the grocery bill as well. Mexico is one of the leading suppliers of many food items that Americans rely on daily. The list includes avocados, tomatoes, cucumbers, bell peppers, jalapenos, and limes. These food costs may climb with the tariffs in place, especially because US producers can't easily replace these imports, reported ABC News. The same applies to Mexican-made beer and tequila, which could soon get pricier.

Impact on the automobile industry

The auto industry will also be impacted by such tariffs as Canada and Mexico play a leading role in supplying auto parts to the US. Canada and Mexico accounted for nearly half of all US vehicle imports in 2023, totalling about $120 billion worth of US motor vehicle imports.

Car companies on both sides of the border will be severely impacted. The tariffs could put upward pressure on the prices of cars for consumers, according to Harvard's Kennedy School of Government professor, Robert Lawrence.

FAQs

How will the 25% tariffs affect gas prices?
Gas prices could rise by 40 to 70 cents per gallon, especially in regions relying on Canadian and Mexican crude oil. Seasonal price hikes could push the increase to $1 per gallon by spring.

Will food prices go up because of these tariffs?
Yes, prices for items like avocados, tomatoes, and tequila, mainly imported from Mexico, are expected to rise due to the tariffs, as US producers can’t easily replace these imports.