President Donald Trump's tariffs on imports from Canada, Mexico and China are expected to surge in prices for a range of products, from food and electronics to home appliances and cars.
The new obligation, which came into effect Tuesday, imposed 25% on North American neighbours and 20% on China. The three countries accounted for 40% of the country's imported products last year.
The range and timing of price increases will depend on whether a company absorbs some of the additional costs, adjusts its supply chain, or relies on existing inventory before handing over the costs to consumers.
This is what shoppers can expect in the country:
Canada
Canada's produce includes grains such as wheat, barley and oats, along with meat products such as beef, pork and chicken.
Dairy products such as cheese, milk and butter are also large imports. The US also imports fruits and vegetables, especially out-of-season agricultural products.
For grocery retailers (industrials operating at thin profit margins), high import costs can leave little room to absorb additional costs and the prices can be passed directly to the consumer.
The US also imports a significant amount of vehicles and auto parts from Canada, including cars, trucks, engines, transmissions, tires and other components.
Many automakers have integrated supply chains that cross borders many times.
Vehicles sold in the United States today are rarely fully constructed on American soil. Many automotive components, whether in the US or its neighboring trading partners, cross the Mexican-Canadian border multiple times before the final rally.
“There are probably no vehicles in today's market that are not affected by tariffs in any way or fashion,” says Peter Nuggle, an automotive economist at S&P Global Mobility. I told CNN.
“I think prices will start to change a week or two after the tariffs come into effect.”
An analysis by Anderson Economic Group, a Michigan-based think tank, estimates that production costs for vehicles manufactured in North America will increase by $3,500 to $12,000.
These higher costs may make it unfeasible to continue producing certain models, especially models with low-cost optional packages.
As a result, according to Patrick Anderson, CEO of Anderson Economic Group, there may be a need to cut jobs and production across the industry.
“Producers stop creating parts of the model,” Anderson explained.
Machinery and equipment are also major imports, covering industrial machinery, construction and mining equipment, computers and electrical machinery.
Mexico
The US maintains robust trade ties with Mexico and imports a variety of goods that strengthen the various sectors of the US economy. In 2024, US imports from Mexico totaled $55.9 billion, up 6.4% from the previous year.
In 2024, the US imported $46 billion worth of agricultural products from Mexico. This included $8.3 billion in fresh vegetables, $5.9 billion in beer and $5 billion in distillation spirit.
The largest single category is fresh fruit totaling $9 billion, with avocados alone making up $3.1 billion.
Another important part of imports consists of vehicles and automotive parts, highlighting Mexico's pivotal role in the North American automotive industry.
In 2023, the US imported a highly compatible vehicle from Mexico worth $1300.3 billion. This includes vehicles that include vehicles that will transport for $35.5 billion in auto parts and accessories and $328.8 billion in vehicles.
Electrical machines and equipment represent a significant portion of the US imports from Mexico.
In 2023, these imports were valued at $85.55 billion, including $156.2 billion in products such as insulation wires and cables, $10.36 billion in phones and smartphones, and $10.16 billion in monitors and projectors.
Furthermore, the US imports a significant amount of mineral fuels, oil and agricultural products from Mexico.
China
China is the largest trading partner in the US and serves as a major supplier of electronics, machinery, textiles and consumer goods, while the US exports agricultural products, aircraft and technical components.
However, relationships are often tense due to trade imbalances, tariffs and geopolitical tensions.
Consumer electronics is one of the most imported items from China, with items such as mobile phones, laptops, TVs, video game consoles and related components essential to American households and businesses.
In 2023, the US imported approximately $126.8 billion worth of electrical and electronic equipment from China.
This category includes a wide range of products, including home appliances such as smartphones, computers, and TVs. In particular, Consumer Electronics alone accounts for $96 billion in imports from China, accounting for 41% of US imports in the sector.
China is also a leading supplier of appliances, toys and footwear, and these industries have become particularly vulnerable to increased tariffs.
According to The Footwear Distributors & Retailers of America, industry trade groups representing brands such as Nike, Steve Madden and Cole Haan import the overwhelming 99% of the shoes sold in the US.
Toys and sports goods are another sector that relies heavily on China.
Approximately 75% of toys and sports goods, including items such as soccer, soccer balls, baseball, and other products, come from Chinese manufacturers, and are particularly susceptible to price hikes due to customs duties.
