If things go as planned, American consumers may have to pay more for necessary products as from this week Trump imposed new tariffs on China, Mexico, and Canada. The tariffs that are to take effect from Tuesday include a 25 per cent tax on Mexican products, 10 per cent tariff on Chinese goods and 10 per cent tariff on the majority of Canadian goods, energy products being exempted.
This is because the impact will be felt across multiple industries. Fruit, vegetables and meat may be more expensive as Mexico and Canada are major food suppliers to the United States. Gas and energy costs may also rise because the U.S. imported $97 billion worth of oil and gas from Canada last year.
The automotive industry is also going to face challenges as $87 billion in vehicles and $64 billion in auto parts are imported from Mexico every year. The prices of steel and construction materials will also rise as Canada and Mexico supply a large portion of US steel.
Beer and alcohol prices may rise, particularly for Mexican brands like Modelo and tequila. Also, phones, laptops, and game consoles, among other electronics, toys, and appliances made in China may be more expensive. It remains to be seen how long the market will be able to absorb the impact of Trump’s tariffs on key imports as both businesses and consumers are likely to feel the pinch in terms of increased prices across a variety of products, including food, vehicles and home construction.
