These products may get expensive in US after Donald Trump’s tariff on China, Mexico and Canada

US President Donald Trump on Saturday imposed steep tariffs on goods from Canada, China, and Mexico, which are among the country’s largest trading partners.

The tariffs will come into effect on Tuesday and they came about with Trump citing a national emergency due to the flow of fentanyl and undocumented immigrants into the US.

Also Read: Canadian hockey fans boo US national anthem in protest of Trump tariffs

As a result, there will be a 25 per cent duty on all imports from Mexico and most goods from Canada (With a 10 per cent carve-out for energy items like crude oil) and a 10 per cent tariff on Chinese goods.

Therefore, products such as fruits and vegetables, meat, gas, automobiles, electronics, toys, clothing, lumber, and beer and spirits will get more expensive, according to a CNN report.

What gets expensive in US after tariffs?

1) Fruits and vegetables

Mexico is the largest supplier of fruits and vegetables to the US while Canada is the top supplier of grain, livestock and meats, poultry and more.

Since grocery retailers operate on already thin margins, this may result in price hikes on fruits and vegetables.

2) Energy

The US imported $97 billion worth of oil and gas from Canada last year and this is Canada’s largest export to the US. The US had also become more dependent on Canada for oil after the expansion of Canada’s Trans Mountain pipeline.

However, the tariff is only 10 per cent.

Also Read: Mexico accuses US of ‘slander’ over cartel alliance claim

3) Cars and auto parts

The US imported $87 billion worth of motor vehicles and $64 billion worth of vehicle parts from Mexico last year, excluding December.

These are the top 2 most imported items from Mexico and it comes because of car companies shifting production there due to cheaper labour costs.

4) Steel

Canada and Mexico are the largest and third-largest exporters of steel to the United States, respectively. Canada now accounts for nearly a quarter of steel imported by the US while Mexico accounts for about 12 per cent, according to the report.

5) Beer and alcohol

The tariffs may result in increasing prices for tequila, which can be made only in Mexico, as well as for the top beer brand in the US, Modelo.

The US imported $5.69 billion of beer and $4.81 billion of alcohol from Mexico in 2023, according to International Trade Administration data.

Constellation Brands, which imports Modelo and Corona beer as well as Casa Noble tequila from Mexico, could costs leaping 16 per cent and may have to raise prices by about 4.5 per cent, according to the report which cited Chris Carey, a Wells Fargo equity analyst.

Also Read: China vows retaliation on Trump tariffs, says ‘no winners in trade war’

6) Construction and furniture

Softwood lumber from pine, spruce, firs and other conifers is a critical ingredient for the framing, roof and siding of US homes. 30 per cent of what the US uses annually comes from Canada.

Also 71 per cent of the imported $456 million of lime and gypsum (which are used for drywall) came from Mexico in 2023.

7) Electronics, toys, and appliances

China is the top supplier of toys, footwear, and also consumer electronics and home appliances for the US such as phones, TVs, laptops, video game consoles, monitors and all the components that power them.

According to data of Footwear Distributors & Retailers of America cited in the report, 99 per cent of shoes sold in the US are imported, with 56 per cent of shoes sold in the US made in China. Meanwhile, 75 per cent of imported toys and sports equipment come from China.