Trump's Tariffs Are Here. Here's What Will Get More Expensive From Canada, China, and Mexico

President Donald Trump has imposed hefty tariffs on the United States’ three largest trading partners: Canada, China and Mexico.

What Happened: The tariffs imposed by Trump on Saturday include a 25% duty on all imports from Mexico and most goods from Canada, excluding energy-related items such as crude oil, which will see a 10% tariff. Additionally, a 10% tariff will be levied on Chinese goods imported into the United States.

The tariffs, set to take effect on Tuesday, have been met with warnings from economists about potential negative impacts on American businesses and consumers, reports CNN.

The US Chamber of Commerce has warned that these tariffs could disrupt supply chains and lead to increased prices for American families. Sung Won Sohn, a professor of finance and economics at Loyola Marymount University, stated, “Consumers are going to be clearly worse off.”

Approximately one-third of US imports come from the three countries targeted by Trump’s tariffs. These imports include everyday items such as fruits, vegetables, meat, gas, automobiles, electronics, toys, clothing, lumber, and beer and spirits.

Also Read: Here’s How Trump’s Policies Might Shape The Market’s Future

The new tariffs could make agricultural products from Mexico and Canada more expensive for US consumers. Last year, the US imported $46 billion worth of agricultural products from Mexico, according to USDA data.

The US also imported $97 billion worth of oil and gas from Canada last year. The 10% tariff on Canadian energy products could limit the impact on gasoline prices.

The auto sector could be significantly affected by the tariffs, potentially wiping out cost savings for US car companies that have shifted production to Mexico.

The tariffs could also increase the cost of imported construction materials by $3 billion to $4 billion, as per the National Association of Home Builders.

Consumer electronics, home appliances, toys, and footwear, most of which are imported from China, are also at risk due to Trump’s tariff threats.

Why It Matters: The tariffs could have a significant impact on the US economy, affecting everything from the price of everyday goods to the cost of production for major industries.

The potential disruption of supply chains could also lead to job losses and economic instability. The full impact of these tariffs will only become clear in the coming months.

Read Next

Trump’s Tariff Plans Ignite Market Rally, Pushing Stocks To Record Highs

Image: Shutterstock