How Trump's Tariffs on Mexico, Canada and China Could Impact U.S. Consumers

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Oil, toys, vegetables and electronics are just some of the products imported into the United States from Mexico, Canada and China that could soon cost Americans more due to Donald's proposed tariffs. Trump.

Trump announced that Canada and Mexico could soon see a 25 percent tariff added to all imported products, while China could face an additional 10 percent. According to Trump, this is part of an effort to reduce crime and the entry of drugs into the United States and slow the amount of illegal trafficking. border crossings.

Although tariffs are designed to promote domestic production and purchasing by taxing imported products, the increased costs generally fall on consumers, not foreign governments. Many economic experts have warned that Trump's tariffs on goods from those three countries could lead to soaring prices and inflation — a concern shared by many voters who said they support Trump.

The United States directly imports a multitude of goods from Canada, Mexico, and China, as well as supplies for American-made products. Here are what resources, materials or products come from these countries:

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Donald Trump has proposed tariffs on China, Mexico and Canada – which supply a multitude of goods to the United States, such as toys, lumber and food (AFP via Getty Images)

Crude oil

Canada is the largest supplier of crude oil to the United States, with more than 3.8 million barrels per day, or 60 percent of U.S. crude oil imports, coming from its northern neighbor.

Even though the United States produces large quantities of crude oil every day, it makes more economic sense to import it. Crude oil produced in the United States is considered light compared to heavy oil produced in Canada and the Middle East.

This means that the United States depends on heavy oil imports. Importing from Canada, which is close and does not require as much transportation as other countries like those in the Middle East, makes it more accessible.

Gasoline is made from crude oil, and oil price spikes can cause more trouble at the pump.

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Many experts say Trump's threatened tariffs will lead to price increases (Getty Images)

A 25% tariff on Canadian oil would have huge impacts on gas prices in the Great Lakes, Midwest and Rockies, which are major markets where refiners process Canadian oil. You can't just process different oils overnight. This would take investments/years. Increased US supply would be of no use, gas price expert Patrick De Haan warned on X.

De Haan, industry leader at GasBuddy.com, further warned that oil refineries in the United States have declined over the past four years, making it more difficult for the United States to increase its production of essence.

The total impact on gas prices in these areas could be 25-75c/gal, depending on the season and refining factors as well if the tariffs are implemented, De Haan added.

Motor vehicles and spare parts

Mexico is the largest exporter of vehicles, automotive parts and accessories to the United States, more than any other country, accounting for 27 percent of all imports from Mexico.

Importing auto parts overseas and then assembling them in the United States is a less expensive alternative to manufacturing and assembly domestically. The tariffs would increase the cost of most cars, although it's unclear by how much.

Patrick Anderson, managing director of Anderson Economic Group, a Michigan consulting firm, told the New York Times: There probably isn't a single assembly plant in Michigan, Ohio, Illinois and Texas which would not be immediately affected by a 25 percent tariff.

The tariffs would be a disaster for the U.S. auto industry, Bernstein analysts said in a note to investors, according to the Times. But, they added, they doubt Trump will follow through.

Given the wide-ranging negative implications for U.S. industrial production, we believe this is unlikely to happen in practice, Bernstein analysts said.

Electronic equipment

More than a quarter of U.S. imports from China fall into the category of electronic equipment, machinery and products.

These include items like TVs, smartphones, monitors, projects and much more. All could see their prices increase if tariffs were imposed and passed on to consumers.

Mexico is also a major producer of electronics, not only in the United States but worldwide.

Mexico has more than 730 factories manufacturing audio and video equipment, telecommunications, computer equipment and related parts. It is the world's largest exporter of flat-panel televisions, the third-largest computer exporter and the world's eighth-largest electronics producer, according to consulting firm IVEMSA, according to PC Mag.

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Experts warn that a large share of electronics sold in the United States come from Mexico, Canada and China and could see their prices rise (AP)

Sugar

Among Mexico's largest exports to the United States are sugar and sweeteners. The United States spends more than $700 million importing sugar directly from Mexico.

More than 445,000 tons of sugar were imported from Mexico to U.S. ports between October 2023 and September 2024.

Fresh vegetables and fruits

The United States spends more than $20 billion annually on imports of horticultural agricultural products from Canada and Mexico. Tomatoes, avocados, peppers, strawberries, lemons, limes, broccoli, cauliflower and many other products are imported to the United States from Mexico.

Canada supplies the United States with mushrooms, potatoes and much more.

All of these items could see their prices increase due to customs duties. This would hit American consumers hard, as food prices have already increased by about 25% since 2020. Many voters used food as an example of the impact of inflation on their daily lives, so A further increase in food prices could be devastating for households.

Meat

Beef and beef products are often imported from Canada and Mexico and the quantities imported have only increased over the past three years.

An analysis by Third Way found that the average cost of 3 pounds of frozen beef in America is $26.67. A 10 percent tariff on all products, with a 60 percent tariff on products from China, would cause the price of the same meat to rise to $27.76.

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Consumers have already seen food prices rise 25% since 2020, but Trump's proposed tariffs could lead to further price increases (AP)

Toys

China's third-largest exports to the United States are toys, games and sporting goods because they are cheaper to manufacture overseas.

Although the idea of ​​the tariffs is to promote domestic production, the chief executive of Basic Fun, the maker of Fischer-Price and Care Bears, told the New York Post that there is no longer a basis for toy manufacturing in the United States.

The same Third Way analysis estimated the cost of an average board game to range from $14.87 to $17.85 under Trump tariffs.

Wood, plastics and other materials

These three countries provide the United States with an abundance of materials like wood, plastic, iron, textiles and much more.

Some companies have already warned that tariffs on materials could lead to a sharp increase, even for products assembled in the United States.

People generally don't understand how dependent the global economy is on these kinds of intermediate goods, raw materials, that we kind of take for granted, Willy Shih, an economist at Harvard Business School, told PackagingDive. com.

They need to understand where their risks lie, he said. Often this will be in surprising areas, as your exposure may be at the supplier level. Your second-tier supplier may be exposed to tariffs and you may not know it, but the first thing you need to do is understand all of this.

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