While the wide ranging effects of President Donald Trump’s tariffs remain up in the air, experts tend to agree that several consumer-purchased products will soon get more expensive.
Trump announced on Saturday that he will impose 25% tariffs on imports from Mexico and Canada, as well as an additional 10% tariff on goods coming from China.
Trump has said that his tariffs will result in the countries they are levied against paying more, several experts have said that the burden of higher costs will instead fall on consumers first.
The tax-focused think tank the Tax Foundation has pointed to the concerns from Trump’s tariffs, saying that instead of swallowing the costs, foreign companies will stead raise their prices to help recoup the expenses incurred through the tariffs.
“Historically, economists have generally found that foreign firms have absorbed some of the burden of tariffs by lowering their prices, meaning domestic firms and consumers haven’t borne the entirety of higher tariffs in the past,” the foundation wrote. “In contrast to past studies, however, new studies have found the Trump-Biden tariffs have been passed almost entirely through to US firms or final consumers.”
Among the goods that could soon get pricier includes oil and gas products, as it remains to be seen whether Trump will make an exception for the industry with a steady flow of oil coming from Canada.
GasBuddy’s Patrick De Haan recently shared with CBS News that Canada accounts for about 20% of what is used in the US, meaning tariffs on the imports could cause prices at the [ump to rise 30 to 40 cents a gallon.
Grocery lists may soon cost a bit more as well, as prices for vegetables, fruits, and nuts imported from Mexico could soon rise. This may make it harder to stick to your New Year’s diet or throw your Super Bowl party, as yes, avocados are among the imports that could see their prices impacted.
The US Department of Agriculture reports that the US imported more than $45 billion in agriculture products from Mexico in 2023. Among other items that come from the country includes beer, tequila, and other liquors.
From Canada, the US imports close to $40 billion in agricultural products, with beef, pork, grains, potatoes, and more coming from the country.
With tariffs now in place, prices for those products could soon shoot through the roof.
If you’ve been waiting to buy a car, now might be the time to buy it quickly, as the US imported $69 billion worth of cars and light trucks from Mexico in 2023, as well as $37 billion from Canada.
The autoparts industry will also impact American made cars, as US manufacturers relied on the almost $78 billion worth of imported auto parts from Mexico and $20 billion from Canada.
Still, Trump maintains that prices will not rise, noting in his announcement of the tariffs that they will curb the illegal flow of migrants and drugs into the US.
“We need to protect Americans, and it is my duty as President to ensure the safety of all,” Trump said in a post on Truth Social announcing he had signed the tariffs. “I made a promise on my Campaign to stop the flood of illegal aliens and drugs from pouring across our Borders, and Americans overwhelmingly voted in favor of it.”