6 Things That Could Get More Expensive for Americans Under Trump Tariffs
US President Donald Trump’s recent tariff announcements on imports from Canada and Mexico have sparked economic concerns. While Trump argues that tariffs will protect American industries, many economists warn that they could lead to higher prices for consumers. With the US, Canada, and Mexico having deeply integrated economies and supply chains, the tariffs may significantly impact the cost of various goods. Here’s a ranking of six key products that could become more expensive under these new tariffs.
1. Cars
The auto industry is one of the most affected sectors, with prices expected to rise by about $3,000 per vehicle. Since car manufacturing relies on parts that cross borders multiple times, the tariffs on imports from Canada and Mexico will increase production costs. These costs are likely to be passed on to consumers, making both new and used cars more expensive. The disruption of decades-long free trade in the car industry could lead to further economic instability.
2. Fuel Prices
Canada is the largest foreign supplier of crude oil to the US, with 61% of imports coming from its northern neighbor. Although energy imports face a lower tariff rate of 10%, this could still lead to higher fuel prices. US refineries depend on heavier crude oil from Canada and Mexico, and any retaliatory move from Canada to reduce exports could result in rising gas and diesel prices at the pump.
3. Houses
The US imports a significant amount of lumber from Canada, which is crucial for home construction. The National Association of Home Builders (NAHB) has expressed concerns that tariffs on Canadian lumber will increase housing costs and discourage new home construction. Given that most US homes are built using wood, this could lead to a rise in home prices and a slowdown in housing development.
4. Beer, Whiskey, and Tequila
Popular Mexican beers like Modelo and Corona could see price hikes if importers pass on the added tariff costs to consumers. Additionally, spirits such as Bourbon, Tennessee whiskey, and Canadian whisky could be affected, as these distinctive products can only be produced in their respective countries. With trade restrictions, supply chain disruptions could lead to higher prices for consumers at bars and liquor stores.
5. Avocados
Avocados are a staple in many American households, especially given their popularity in dishes like guacamole. Since nearly 90% of avocados sold in the US are imported from Mexico, tariffs could significantly impact prices. The US Agriculture Department has warned that these price increases could be particularly noticeable around major events like Super Bowl Sunday when demand for avocados spikes.
6. Maple Syrup
Canada dominates the global maple syrup market, producing 75% of the world’s supply, with most coming from Quebec. The new tariffs on Canadian imports mean that American consumers could see higher prices for this breakfast staple. Since maple syrup is difficult to substitute and has limited production in the US, households will likely face direct price increases.
Final Thoughts
While Trump’s tariffs aim to boost American industries, the immediate impact could be an increase in costs for everyday goods. Whether it's cars, fuel, food, or beverages, many essential products could become significantly more expensive, affecting both consumers and businesses across the country. If Canada and Mexico retaliate, the trade war could escalate further, exacerbating price hikes and economic uncertainty.